Diokno: Structural reforms to fuel ‘A’ level credit rating

-- A structural reform is seen to boost the Philippines’ chances of having an ‘A’ level credit rating within two years. Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno made this remark in a briefing Friday as he identified the factors that would fuel the likelihood of improvement in the country’s credit rating, such as tax reforms and the changes being pursued by the central bank.

Among the reforms that the BSP is implementing is the latest change in the central bank charter, which, among others, allows it to issue debt paper.

The BSP is also pushing for continued digitalization of the payments system and the implementation of

Islamic Banking. Diokno said with these factors, it is “doable” for the domestic economy to post a 7-percent growth this year, within the government’s 6.5 percent to 7.5 percent target band. “As long as the national government is able to implement the ‘Build Build Build’ program, I think the road to ‘A’ strategy can be accomplished in two years’ time. I’m very optimistic,” he added. In April 2018, Standard & Poor’s (S&P) upgraded its outlook on its credit rating on the economy from Stable to Positive on the sustained improvement of the country’s external payments position and institutional and fiscal positions. To date, S&P has a BBB+ rating on the Philippines, its highest investment-grade level. (PNA)