RP's 2000 economic goals are achievable: IMF
RP's 2000 economic goals are achievable: IMF
MANILA (AFX-ASIA): The International Monetary Fund (IMF) said
the Philippines' 2000 gross domestic growth target for the year
of 4-5 percent, its average inflation rate goal of 5-6 percent
and its foreign exchange reserves target of over US$16 billion
will be achievable if the government pursues its policy reforms
and improves investor confidence.
"Developments to date suggest that these targets are
achievable if macroeconomic policies remain on track, the reform
agenda is vigorously pursued, and investor confidence -- which
has been adversely affected by a combination of factors,
including developments in Mindanao -- improves in the near
future," the IMF said in a statement.
The IMF said it is close to completing its fifth review of the
domestic economy and a successful completion will enable the
country to draw about $325 million from the remaining funds of
its $1.4 billion stand-by IMF loan.
The IMF added that the country's external payment position
stands solid, reflecting a large current account surplus, a high
level of foreign reserves and an improving maturity structure of
external debt.
But under the IMF program, the key challenges include
government being able to stick closely to its fiscal targets
which will entail vigorous collection efforts by the revenue-
generating agencies and careful monitoring and control of
expenditures.
Other challenges include the passage of the power sector
reform bill and the new Securities Act. The former will help
ensure competition in the power generation sector as well as
provide a strong regulatory body while the latter will help
restore confidence in the stock market.
The IMF said that the passage of revisions to the general
banking act will also further strengthen the central bank's
ability to supervise the banking system.
"Looking further ahead, it will be important to give bank
supervisors the tools they possess in other well-regulated
markets, including adequate protection from civil lawsuits for
official actions taken and access to vital depositor
information," the statement said.
The IMF said it is also vital to pursue the rehabilitation of
the Philippine National Bank and to complete its privatization.