spot_img
28.1 C
Philippines
Friday, March 29, 2024

Diokno sees stronger economy after pandemic

- Advertisement -

Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the Philippines is expected to regain its pre-pandemic growth momentum and become a much better economy in the post-COVID era.

Diokno made the statement as the featured speaker in the virtual event “Conversations with the Governor” organized by London-based think tank Official Monetary and Financial Institutions Forum.

The forum provides an international platform for central banking and public policy dialogs, such as through events whose audience includes financial sector regulators and financial industry players from the private sector.

Diokno said during the event the Philippines was already set to graduate from lower to upper middle-income status right before the pandemic.

“Looking ahead, we do not aim to simply regain the economic losses from the pandemic. We aspire for a ‘post-COVID-19 Philippine economy’ that is stronger and more resilient, more technologically advanced, and more inclusive than ever before,” Diokno said.

- Advertisement -

He said the country is pursuing this goal in three ways and the BSP is an active partner of the government toward this end.

First is by liberalizing the economy and making it even more investor friendly, such as through the country’s participation in the Regional Comprehensive Economic Partnership among select Asia-Pacific economies and legislative reforms like the Corporate Recovery and Tax Incentives for Enterprises law.

“On the part of the BSP, we support investment promotion through a regulatory environment that is welcoming to foreign investors and technological innovation,” he said.

Second is by infrastructure development. Citing the BSP’s contribution to the government’s infrastructure development drive, Diokno said the BSP is contributing to infrastructure development through regulatory measures such as by increasing the single borrower’s limit and deepening the capital market that makes it easier for infrastructure companies to finance projects.

The BSP last year implemented time-bound regulatory relief measures that included an increase in the single borrower’s limit from 20 percent to 25 percent and exemption from the SBL of debt securities acquired by banks from market making activities. These two measures were meant to support infrastructure development amid the pandemic.

Third is through the inclusion agenda. He said BSP regulations and advocacy programs meant to ease access of micro enterprises to credit and other financial services were in place and constantly revisited for enhancement.

The BSP also implements financial literacy programs that improve knowledge of Filipinos on savings and investments.

Diokno cited the BSP’s commitment to price stability and financial stability, which provide an enabling environment for consumption, investments, and overall economic growth.

- Advertisement -

LATEST NEWS

Popular Articles