Financial Crisis: The Philippine Version

[uls]

Emerging market investors convert their liquid foreign investments back into US dollars and go back to their Mothership.

They seek a safe haven for their capital.

Now isnt the time to desire higher returns.

Now is the time to protect capital from erosion.

[tidus1203]

Kung tutuusin maliit na nga yang $300M dollars. It also says a lot about our country's liquidity or lack of it. $300M++ is enough to push the peso down what P5

[uls]

hehe

itsy bitsy teeny weeny Philippine capital market

[jpdm]

Philippine Star

GMA adviser: RP running flat
By Paolo Romero
Updated November 18, 2008 12:00 AM

Traders discuss the day’s trends at the Philippine Stock Exchange in Makati yesterday. AP

President Arroyo’s economic adviser yesterday likened the country’s economy to a car “running flat,” even as he warned against complacency in dealing with the global financial crisis.


“I would liken the Philippines to a car that is running flat but still running. But the problem is that the nearby gasoline stations are closed,” said Albay Gov. Joey Salceda.


Salceda warned that the Philippines would be hit hard by the global economic crisis after leaders of the world’s largest economies apparently glossed over the real problems besetting the global economy.


He said there appears to be some complacency in government in dealing with the fallout of the global financial crisis. This is compounded, he said, by the 20 largest economies or the G20’s failure to face the real issues in the crisis.


“Nobody (in the G20) is calling for sacrifices. Nobody acknowledged resource depletion, which is half the problem,” Salceda said in a telephone interview. “There is an underlying belief that by throwing money at the problem, it would be solved.”


“I think the global ethos is better than panicking. There is nothing about protecting the poor,” he said.


Salceda pointed out that even as the crisis is still to worsen, [SIZE=3]greed among financial giants could not be satiated. [/SIZE]He cited the $700-billion bailout plan for bankrupt US financial institutions where large insurers try to buy the imperiled firms so they can get chunks of the financial assistance.


He said “most disturbing” is the “domestic complacency in government in not acting quickly to shore up the country’s defenses against the global economic meltdown.”


Salceda said the Philippines should take advantage of the “lull before the storm” by immediately increasing deposit insurance and seeking other sources of foreign funding.


He said the effects of the financial meltdown in other countries were slowed down not by bailouts but through increasing deposit insurance.
“What we see are false starts and very little to prevent a cycle of crisis,” he said.


Salceda said more than 70 percent of the national government’s incremental foreign funding came from sovereign bonds that are essentially handled by the US financial giants that have collapsed.


He said the worst-case scenario for the Philippines is zero-percent growth. But he gave this only a 10 percent chance of happening.
A three- to four-percent growth next year has a 50 percent chance of happening, he said.


“We will be hit hard but we will fare better than our neighbors that will be hit worse,” he said.


Salceda said there are only two policy options for the government: “Pain now and more pain later, or more pain now and gain later.”

Stupid government!:drunk:

[uls]

wala naman kaso yan

basta nakuha ng Pinas ang money, it doesnt matter who handled the bond sales...

the important thing is our govt got the money, and will repay the money when the bonds mature.

This is now between the Phils. and the bondholders.

the financial institutions are just middle men.

[Gen. Miting]

in the business news, there are now talks of open skies with our asian neighbors.

Clark is set to build our most ambitious airport at $65B that will rival China's beijing olympics airport.

i have read so much positive news in the Business mirror just this weekend sa mga i-oopen pa dito. even BPO's there are mentioned in good light compared to what most people are thinking right now if the BPO's are going to be extinct amidst the global crisis. mas ok pala ang BPO pag crisis accdg. to the Business mirror, never thought of it that way ...

sometimes, we just have to ignore the pessimist newspapers ...

[Galactus]

sometimes, we just have to ignore the pessimist newspapers ...

...and pessimist posters, hehehe.

Daming armchair economists dito, di naman objective. Prophets of doom naman pala. If we are to believe them, then dapat wala nang foreign investors sa Pinas, nagsi-alisan nang lahat.

[gearhead]

in the business news, there are now talks of open skies with our asian neighbors.

Clark is set to build our most ambitious airport at $65B that will rival China's beijing olympics airport.

i have read so much positive news in the Business mirror just this weekend sa mga i-oopen pa dito. even BPO's there are mentioned in good light compared to what most people are thinking right now if the BPO's are going to be extinct amidst the global crisis. mas ok pala ang BPO pag crisis accdg. to the Business mirror, never thought of it that way ...

sometimes, we just have to ignore the pessimist newspapers ...

That is good to hear. Out of curiousity how was it explained that BPOs should fare well? Not farewell.

Also I still would think IT outsourcing as well as software work since these actually lead to more efficiencies. Given that excesses and ineffiencies helped bring us here in the first place

[uls]

Clark is set to build our most ambitious airport at $65B that will rival China's beijing olympics airport.

$65B?

hindi kaya typo yan?

link pls.

pag nag issue ng sovereign bonds ang Pinas, nasa hundreds of millions of dollars lang.

the entire budget of the Phil. gov't for 2008 is 1.2 trillion pesos (that's just around $20B)
http://www.gov.ph/news/default.asp?i=18268

the Bangko Sentral's gross international reserves is only $36B
http://www.bsp.gov.ph/statistics/sdds/table12.htm

$65B?

haha

you're making this up.

the Phils. can't even borrow a billion dollars from anyone right now

link pls

[Galactus]

^^^ Its Php 56.5 Billion or US$ 1.7B (as per Wikipedia), pero old rates yata ang ginamit.
Currently, at Php49 to US$1, its close to Php 83B.

Bond flotation is not the only source of funding for development projects such as these. Puwede rin foreign loan syndication, or developmental loans from MFI's (para mababa ang interest). Normally naman, such projects come with sovereign guarantees, so maliit ang risk for the lender.

But at US$ 65B tapos Pilipinas ang uutang, ibang usapan na yon. (Laki ng commission ni Fat Bastard at Pandak kung nagkataon, hehehe)

-----------------------------
http://en.wikipedia.org/wiki/Clark_I...tional_Airport

Premier Gateway Plan
The project includes and features:

Demolition of most airport structures except the existing passenger terminal.
Apron of the existing passenger terminal, and the two runways expansion and modernisation of the existing passenger terminal and its conversion into a Low Cost Airline Terminal.
The extension of the eastern runway to 4000 meters.
Construction of a y-shaped main passenger terminal building with 126 jetways (19 which are A380 ready) and a x-shaped satellite concourse with 79 jetways (12 which are A380 ready) and a new control tower in the midfield.
Construction of new taxiways and aprons.
Construction of four new runways.
Construction of a new cargo terminal complex.
Construction of an airport plaza which will house the wellwishers facility.
Construction of Management offices, business center and airport hotel and will also have a retail area.
Construction of a Ground Transportation Center (GTC) below the airport plaza which will house an Airport Railway station, the airport bus station, the taxi station and the car rentals.
Construction of a People Mover Automatic People Mover (APM) connecting the airport plaza and the GTC with the main passenger terminal and the satellite terminal
Construction of a new railway with 2 separate lines, one for the Airport Railway and another for the NorthRail commuter and high speed rail line serving Manila and the northern provinces of Luzon.
Construction of 2 interchanges from the Subic-Clark-Tarlac Expressway which will connect to the existing North Luzon Expressway.
Additional features:

Three parallel runways capable of NASA space shuttle landings (one of only three in world).
Facility can accommodate the A380 once completed.
Will be one of the largest airports in the world.
When completed, it will have:

145 Frontal Rontal Gates and
134 Remote Gates
4 Runways [14]
Once completed it can accommodate 110 million passengers annually.[14], becoming one of the largest and most technologically advanced airports in the world.

On February 5, 2007, Philippine President Gloria Macapagal Arroyo ordered the Clark International Airport Corp. to hasten the P56.5-billion or $1.7-billion development of the Diosdado Macapagal International Airport and the approval of $2-million study plan financed by the Korean International Cooperation Agency. In January 2008, the first stage of DMIA's expansion program, the P130-million Terminal Expansion, was completed to accommodate at least 2 million passengers annually.

The second phase of the airport expansion project, dubbed Premier Gateway Terminal as part of its ambition to replace NAIA as the "Premier Gateway to the Philippines", will start on April 2008 and is scheduled to become operational in 2009, to include retrofitting to better accommodate wide-bodied aircraft like Boeing 747-8 & Airbus A380.[15]