IMF foresees economic recovery for RP<\/p>\n
MANILA (AFP): The International Monetary Fund (IMF) said
\nTuesday it expects the Philippine economy to pick up this year
\nbut only if it pushes through with crucial reforms, particularly
\non its fiscal sector.<\/p>\n
\"We share the authorities' view that the recent rebound in
\nconfidence, coupled with peso stability and lower interest rates,
\nwill suport a pickup in economic activity this year,\" said Markus
\nRodlauer, head of an IMF delegation visiting here.<\/p>\n
But he warned that this would depend on both external
\ndevelopments and implementation of government plans, many
\nrequiring the approval of Congress.<\/p>\n
\"A lot of work lies ahead,\" particularly in the area of
\nboosting revenues in order to control the budget deficit and
\nstill having enough money to spend on much-needed infrastructure
\nprojects and education, the IMF official said.<\/p>\n
The fund praised the government's plans to overhaul tax
\nadministration and praised the Central Bank of the Philippines
\nfor its exchange rate management, calling it \"a pillar of
\nstrength\" for the economy.<\/p>\n
It cited reforms that the government had to implement as a
\npriority, including a power sector liberalization that still
\nremains stalled in Congress, tax legislation which will allow the
\ndevelopment of capital markets and strengthened supervision of
\nbanks.<\/p>\n
Rodlauer also called for stronger anti-money laundering
\npractices and the passage of a new insolvency law.<\/p>\n
Manila forfeited the last tranche of a 1.4 million-dollar IMF
\nloan last year after the government missed its budget deficit
\ntarget.<\/p>\n
The government has not obtained a new IMF program, but is
\nvoluntarily submitting to scrutiny by the IMF over the next two
\nyears to improve its credit profile.<\/p>\n
Economic growth in late-2000 and early-2001 slowed sharply as
\nthe then-president Joseph Estrada become entangled in a massive
\ncorruption scandal.<\/p>\n
However investor confidence has improved since Estrada was
\ntoppled in a popular uprising in January which saw Gloria Arroyo,
\nan economist, installed as president.<\/p>\n
Arroyo has imposed a number of austerity measures aimed at
\ncurbing the projected record 225 billion-peso (4.5 billion-
\ndollar) deficit this year to a more manageable 145 billion pesos.<\/p>",
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