Wednesday, September 17, 2008

Will the Philippines Be Affected By The US Financial Crisis?

The bangko Sentral ng Pilipinas (BSP) expresses its assurance to the public that Philippines need not worry over the US financial turmoil. The Philippines top two banks, Banco de Oro UniBank, Inc. (BDO) and Metropolitan Bank and Trust Co. (Metrobank) on Tuesday announced their respective exposures to Lehman Brothers investments. BDO said it has allocated P3.8 billion worth of provisions should the US investment bank fail to repay its debts, while Metrobank, which held $20.4 million worth of Lehman-issued bonds, has allocated $14 million.

On the otherhand Pres. Gloria Macapagal Arroyo articlated through abs-cbn that the global financial shockwave have not spared the Philippines and acknowledges economic slowdown. But the government's fiscal reforms have allowed the country to withstand the fallout from these crises.

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