RESTRICTED
WORLD TRADE WT/BOP/7
27October 1995
ORGANIZATION(95-3311)
Committee onBalance-of-Payments Restrictions
CONSULTATION WITH THE PHILIPPINES UNDER ARTICLE XVIII:
OFTHE GATT 1994 AND RELATED UNDERSTANDING
1.TheRepublic ofthePhilippines issubmitting thisreport asrequired under Article XVIII:12(b)
oftheGeneral Agreement onTariffs andTrade (GATT).
2.Thereport seeks toinform themembers oftheWorld Trade Organization (WTO) oftherecent
developments intheeconomy andthebalance payments aswellasmeasures implemented toattain
economic stability andsustainable growth.
3.Inthisconsultation, thePhilippine authorities willhighlight theeconomic gains achieved bythe
country asaresult oftheliberalization andstructural reform measures putinplace inrecent years.
ThePhilippineauthoritiesremaincommittedtopursuetheprocessofeconomicderegulationwithgreater
vigor tohelpthecountry 'sdomestic industries facetheemerging global competitive environment.
I. Developments inthePhilippine Economy in1994 andtheFirst SixMonths of1995
4.Theeconomic stabilization program putinplace bythePhilippine authorities since thelast
consultation withtheCommittee onBalance ofPayments Restrictions inFebruary 1993succeeded in
containing inflation, restoring theviability ofthecountry 'sexternal accounts, strengthening thefiscal
balance andobtaining debtrelief. These, coupled withtheboldeconomic deregulation andstructural
reforms, haveimproved theprospects oftheeconomy toshifttoahigher growth pathoverthemedium
term.
5.Resurgent Growth Performance. ThePhilippine economy recovered strongly in1994, after
twoyears ofsluggish growth. RealGNP accelerated by5.2percent in1994, thehighest since 1990
andexceeding theprevious year'sperformance of2.6percent aswellasthe3.5to4.5percent envisioned
fortheyear. Asurge ininflow ofnetfactor income from abroad anda4.3percent increase inreal
Gross Domestic Product (GDP) propelled thegrowth. Judicious monetary management which ledto
relatively lower interest ratestoward thesecond halfoftheyearandstable inflation supported growth
onthesupply sideandprovided enough liquidity onthedemand side.
6.Despite deceleration inthegrowth oftheaggregate agriculture, fishery andforestry sector, the
lustrous performance oftheother major sectors oftheeconomy ledtoanoverall growth of4.85percent
intherealGDP ofthecountry forthefirstsemester of1995. Thehigher netinflow offactor incomes
fromabroad brought theGNPtoagrowth of5.2percent, animprovement fromthe4.7percent recorded
during thesame period in1994. Asthegrowth inGNP outpaced thatofpopulation, realpercapita
GNP increased by2.77percent.
7.Stable andSingle-Digit Inflation Rate. Despite increased aggregate demand andhighnominal
domestic liquidity, theinflation ratein1994 waskeptatsingle-digit, 9.0percent, lower thanthe9.5
percent target fortheyear. Therightmixoffiscal andmonetary policies supported byastrong pesoWT/BOP/7
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significantly contributed topricestability. Itspositive impact ontheeconomy hasbeenindicated through
stable interest ratesandcompetitive prices oftradeable goods. Theprogress achieved ontheinflation
front wassustained in1995. Forthefirsteight months ofthecurrent year, inflation rateaveraged
6.6percent compared totheyear-ago average of9.7percent.
8.Surplus intheFiscal Balance. ThePhilippines closed 1994withapositive turnaround infiscal
performance. Thefirstever surplus intheNational Government (NG) budgetary position tothetune
ofP/18.1billion wasrealized, aftertwenty years ofshortfall. Themajor factors thatcontributed to
therecord performance ofthefiscal sector weretheupsurge inrealGNP growth, lower interest rates
toward thesecond halfoftheyear, intensive taxcollection efforts, increased income from the
privatization program andprudent expenditure andborrowing policy. Forthefirstsixmonths of1995
thesurplus inthefiscal balance amounted toP/8.9billion. Thiswasowed chiefly tohigher taxrevenue
andproceeds from theprivatization program ofthegovernment.
9.Prudent Monetary Policy andFavorable Monetary Developments. Consistent withtheobjective
torealize macroeconomic stability through fiscal consolidation, monetary policy in1994 sought to
achieve anappropriate balance between attaining higheconomic growth andmaintaining asingle-digit
inflation rate.Thus, themonetary authorities adhered asclosely aspossible totheprogrammed monetary
aggregates, notwithstanding theexpectations forhigher growth arising from higher confidence and
thelagged impact oftherecent financial sector reforms which raised thedemand formoney. Average
domestic liquidity expanded byslightly overaquarter butthisgrowth didnotspillovertothereal
sector interms ofhigher inflation. Interest ratesin1994 weregenerally low,contributing further to
modest coststructure andprice movement.
10.Forthefirstsixmonths of1995monetary policy oftheBangko Sentral ngPilipinas (BSP) remained
focused onachieving non-inflationary growth. TheBSPclosely kepttotheprogrammed monetary
aggregates. Thisnotwithstanding, domestic interest ratescontinued todecline following theheadway
attained infiscal consolidation.
11.Stronger Financial System. Complementing thestable monetary conditions wasthecontinued
development ofastronger andviable financial system. Itsmajor function ofintermediating funds
between savers andborrowers hasbeenstrengthened further bytheincreased capitalization ofbanks
andnon-bank financial intermediaries withquasi-banking functions. Asofend-December 1994, the
totalresources ofthefinancial system, excluding theBangko Sentral ngPilipinas (BSP), atP/1,607.2
billion roseby21.5percent. Commercial banks continued toaccount foraprincipal share ofresources
at66.3percent. Theyear1994 alsosawthepassage ofRepublic Act(R.A.) 7721 otherwise known
as"AnActLiberalizing theEntry andScope ofOperations ofForeign Banks" onMay18,1994which
theBSPsupported actively toengender increased foreign investments, competition inthebanking sector,
andgrowth ofnewfinancial instruments asdomestic banks become more integrated globally.
12.R.A. 7721 allows tennewforeign banks tosetupbranches inthecountry. Inaddition, an
unrestricted number offoreign banks areallowed tobuyupto60percent oftheequity inanexisting
localbankorownupto60percent ofanewbanking subsidiary incorporated under Philippine laws.
During thefirstquarter of1995 tenforeign banks weregranted authority toestablish branches with
fullbanking authority inthePhilippines. Ofthis,seven foreign bankbranches havestarted operating
inthecountry asofAugust 1995. There aretwoapplications offoreign banks forauthority toestablish
anewbanking subsidiary. Oneofthese applications toestablish anewbanking subsidiary hasbeen
approved inprinciple bytheMonetary Board oftheBSPandintheprocess ofcomplying withthe
preconditionrequirementsforlicensing,whiletheotherapplicationisyettobeapprovedbytheMonetary
Board.WT/BOP/7
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13.TheBSPalsoadopted measures tofurther liberalize regulations covering bankbranching, including
thrift banks andrural banks, subject tocompliance withcapitalization requirements andprudential
measures required bytheBSP.
14.Enhanced bytherecent financial globalization andthesubsequent acceleration intheimplementation
ofvarious financial reforms intended tofurther strengthen thefinancial system, bankandnon-bank
institutions 'resource baseasofMayinched upby4.1percent toP/1,673.1 billion fromtheend-1994
level. Banking institutions (i.e., commercial banks, specialized government banks andthrift banks)
accounted forabout 10percent oftheincrease intotalresources. In1995, further reform measures
were putinplace toenhance confidence inthesystem, stimulate demand forbanking services, and
helpimprove themobilization ofdomestic savings. Inparticular, capitalization required ofbanks was
increased while thereserve requirements against alltypes ofdeposits anddeposit substitutes of
commercial banks andnon-banks withquasi-banking
functions andcertain types ofdeposit substitutes ofthrift banks andruralbanks werereduced effective
May31,1995. Anewpolicy wasalsoadopted authorizing government depository banks andprivate
banks tomaintain 50percent liquidity floorintheformofgovernment securities withrespect todeposits
of,borrowings from andallliabilities tothegovernment anditsentities.
15.Healthy Level ofInternational Reserves (IR). Ahealthy andcomfortable levelofIRofthe
BSP wasaccumulated atend-1994. TheIR,which peaked atUS$7,880.3 million inJuly1994,
amounted toUS$7,121.8 million attheclose oftheyearafterrising byUS$1,199.8 million fromthe
1993 level. Theactive participation oftheBSPasanetpurchaser offoreign exchange inthemarket
tomaintain astable foreign exchange conditions andtheacquisition offoreign exchange proceeds from
privatization efforts helped boost thelevelofthegross IR.Heavy purchases offoreign exchange by
theBSPintheforeign exchange market, especially starting inthesecond quarter of1995 following
thecontinued influx offoreign capital continued toboost thelevelofIRduring thecurrent year. The
IRoftheBSPasofend-August 1995 stood at$8,426 million, upby18.3percent fromtheend-1994
level.
16.Market-Determined Peso-Dollar Exchange Rate. The peso- dollar exchange ratein1994
averaged P/26.4171, representing anappreciation of2.6percent overthe1993 average. Market
fundamentals basically determined thelevel ofthepeso-dollar rateasitstrengthened onaccount of
substantial foreign exchange inflows from overseas workers 'remittances, foreign currency deposit
withdrawals andconversion intopesos, andforeign investments. Thisdevelopment wasconsistent
withtheadoption ofafloating exchange ratepolicy under aderegulated foreign exchange market. But
inviewofthelarge fluctuations inthedaily rate,theBSPsought toensure theorderly adjustment of
themarket bystepping upitsforeign exchange purchases.
17.AtP/25.53/US$, theaverage peso-dollar exchange rateforthefirsteightmonths of1995continued
tostrengthen (by6.0percent) relative totheaverage exchange rateofP/27.1613 toadollar inthe
comparable period lastyear. Behind thisdevelopment wasthesubstantial inflow offoreign funds into
theeconomy attracted byimproved economic conditions, asevidenced bytherecent upgrading of
thecountry 'scredit rating byseveral international credit rating institutions.
18.Lower External Debt-Service Ratio. External debtmanagement policy during theyearcontinued
tobeguided bytheavailment ofborrowings atreasonable terms forfinancing productive andpriority
areas atamounts within thecountry 'sdebtservicing capacity byend-December 1994, thecountry 's
foreign exchange liabilities increased by10.0percent from end-1993 toUS$37.7 billion dueprincipally
totheriseinmedium- andlong-term loans tofinance public sector projects such asenergy,
communications andtransportation, andincrease intrade financing andrevaluation losses mainly on
account oftheappreciation oftheJapanese yen.Despite themodest increase indebtstock, thedifferentWT/BOP/7
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debtindicators continued toshow improvements in1994. Thedebtservice burden interms ofratios
toexports ofgoods andservices andtocurrent account receipts declined further to16.9percent and
16.2percent from ahighof27.2percent and25.8percent, respectively, in1990.
19.Atend-March 1995, thecountry 'sforeign exchange liabilities stood atUS$39,042 million or3.6
percent higher thantheend-1994 level. TheUS$1,344 million increase inthedebtstock wasduemainly
torevaluation adjustments arising fromthedramatic appreciation oftheJapanese Yenagainst theUS
Dollar inearly1995. AsofMay1995, thecountry 'sdebtservice burden asaratioofexports ofgoods
andservices andcurrent account receipts wasplaced at16.1percent and15.6percent asagainst 21.6
percent and20.5percent, respectively, inthecomparable period in1994.
II. BalanceofPaymentsandOtherIndicatorsoftheExternalSectorofthePhilippineEconomy
Balance ofPayments Situation
20.Theexternal sector in1994 continued toshow signs ofresurgence andrecovery asmanifested
inthestrengthening oftheoverall balance ofpayments which reflected asurplus ofUS$1,802 million
(inclusive ofrescheduling). Thisfavorable turnaround fromtheUS$166 million deficit posted in1993
could betraced totheimprovements ofboththecurrent andthecapital andfinancial accounts. Without
rescheduling, theoverall balance ofpayments would haverecorded alower surplus ofUS$1,146 million.
Theimproved BOPperformance canbeattributed mainly tothemeasures undertaken bytheeconomic
authorities toliberalize theeconomy, thegrowing interest ofinternational investors inPhilippine stocks
andGovernment securities which wasfacilitated inpartbytheacceleration oftheprivatization program
andincreased volume ofinitial public offering (IPOs) inthedomestic andforeign markets, theimpact
oftheForeignInvestmentsActof1991andlegislationallowingprivatesectorinvestmentininfrastructure
development, andtheresumption ofmedium- andlong-term commercial borrowing asthePhilippines
regained access totheinternational markets.
21.TheBOPperformance in1994 washighlighted byanimproved current account deficit which
declined by4.8percent toUS$2,840 million or4.3percent ofGNP. Although themerchandise trade
gapfurther deteriorated by26.2percent toUS$7,850 million duetohigher imports which grew by
21.2percent toUS$21,333 million compared toexports of18.5percent toUS$13,483 million, the
non-merchandise trade account showed amuch improved performance posting ahigher surplus (by
60.4percent) ofUS$4,074 million. Thiswasduetoincreased remittances from overseas contract
workers (by32.2percent toUS$3,009 million), pesoconversions offoreign currency deposits (by
67.6 percent toUS$2,815 million) andother services (by110.2 percent toUS$1,810 million).
Meanwhile, nettransfers moved upby33.9percent toUS$936 million owing largely topersonal
remittances amounting toUS$443 million andbilateral agreements withother countries amounting
toUS$272 million.
22.Thecapital andfinancial account roseby92.8percent toUS$4,382 million duetothecontribution
offoreign investments andshort-term capital notwithstanding the38.8percent decline recorded inthe
netmedium- andlong-term loanaccount following lower inflows inbothpipeline andnewmoney loans
by6.8percent toUS$2,396 million and12.6percent toUS$1,280 million, respectively.
23.Inthefirstfivemonths of1995, anoverall deficit ofUS$198 million wasrealized, areversal
from theUS$1,338 million surplus recorded inthecomparable period lastyear. Behind this
development wastheweakening ofboththecurrent andthecapital andfinancial accounts.
24.Although exports continued togrow robustly since January, thewidening current account deficit
seems tohaveremained aconcern. Fortheperiod, January-May 1995, thecurrent account shortfallWT/BOP/7
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amounted to$1,351 million. Thereason isthatinthepast,thecurrent account deficit wasmitigated
byrisingreceiptsfromservicesandtransfers.Thefirstfivemonthsof1995,however,sawasubstantially
higher payment forservices andaslowing down innettransfers. Inparticular, theservices account
showedanunusuallyhighotherservicespayments,thebulkofwhichrepresentedunclassifiedpayments
reported bycommercial banks. Yet,thiswasnottheentire picture ofthecurrent account. First, even
asthecurrent account deficit reflected highimport levels, therateofexpansion hassomewhat slowed
down relative toexport growth. Second, more than90percent ofthese imports consisted of
production-related products, particularly rawmaterials andintermediate goods andpetroleum. And
third, investments inkindlikespecialized machines arelodged under imports evenasthistypeof
transaction doesnotinvolve actual foreign exchange outflow.
25.Thecurrent account deficit realized fortheperiod January-May 1995 indicated thatthecountry
relied onforeign savings tobridge theresource gap.These foreign savings came intheform of
short-term loans (29percent), foreign investments (34percent) anddrawdowns fromforeign exchange
reserves ofthebanking system (37percent).
26.During thesame period January-May 1995, despite asubstantially higher netavailments of
short-term loans, thecapital andfinancial account yielded asmaller surplus of$789 million asnet
foreign investments decreased, inflows resulting from thecommercial banks transactions turned out
lower thanlastyear, andazeronetflowinthemedium- andlong-term loanaccount wasrecorded
thisyear.
27.Themedium- andlong-term loan(MLT) account netted azerobalance compared withthe$413
million surplus registered ayearagoasgross inflows during theperiod equalled gross loanrepayments.
Thiscame about astheformer turned out17.5percent lower thantheyear-ago levelduetocutbacks
indisbursements fromforeign banks andfinancial institutions andother sources ofloans. Atthesame
time, MLT loanrepayments roseby15.4percent owing mainly tohigher amortizations tobilateral
creditors, particularly principal payments onParis Clubdebts. Withzeronetflow, theMLT account
didnothelpinfinancing thecurrent account deficit.
28.Netinflows fromforeign investments declined by42.4percent duetothedeceleration indirect
investments coming from bothresidents andnon-residents coupled withincreased outward resident
investments inbothequities andportfolio. However, portfolio investments bynon-residents remained
bullish withnetinflows increasing bymore than100percent. Onanetbasis, however, direct
investments bynon-resident at$643 million were almost equal tonetportfolio investments of$646
million showing therelatively equal importance ofdirect andportfolio investments inthePhilippines.
Meanwhile, outward portfolio investments byresidents which averaged $199million inthefirstquarter
slowed down toanaverage of$92million inApril andMayasconfidence inthesustainability of
economic growth inthecountry returned withtheannouncement inMaythattheeconomy registered
a5.2percent realgrowth inthefirstquarter. Onanetbasis, foreign investments provided 34percent
ofcurrent account financing.
29. Theincreased volume ofmerchandise tradereflecting theexpansion innational output resulted
intheincreased netavailments ofshort-term loans particularly suppliers credit intheformofdocument
against acceptance (D/As) andopenaccount (O/As) aswellasexport advances. Asshown inthecurrent
account financing, short-term capital contributed 29percent.
30. Alarge negative errors andomissions wasrecorded thisyearwhich would reflect partly
withdrawals offoreign currency deposits indollars thathavenotyetbeenidentified intheother BOP
components. Thiscould beconfirmed bythedecrease inthenetforeign assets position ofcommercial
banks indicating thatbanks acted asanetsource offoreign exchange tothesystem.WT/BOP/7
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Exports
31. Exports grew by18.5percent toUS$13,483 million in1994, 2.7percentage points higher
thanthe15.8percent growth posted in1993. Theincrease wasbrought about byeconomic recovery
ofthecountry 'smajor trading partners thatresulted inabuoyant growth inthesalesofelectrical and
electronic equipment/parts andtelecommunication (US$1,433 million), coconut products (US$107
million), machinery andtransport equipment (US$106 million), andgarments (US$103 million).
Appreciable increments werealsonoted intheshipments ofmineral products (US$94 million), textile
yearns/fabrics (US$55 million), otheragro-based products (US$54 million), chemicals (US$44 million),
footwear (US$42 million) andfurniture andfixtures (US$37 million). Thestrong performance ofthe
country 'sexport sector wasattributable toahostofmeasures adapted during thereview period by
theBSPtoencourage export competitiveness andviability. Oneofthemeasures undertaken toabate
therapid appreciation ofthepesobyinducing demand forforeign exchange wastoincrease theceiling
ofoutward investments perinvestor peryearfromUS$1 million toUS$6 million. Ontheother hand,
tomoderate theinflow offoreign exchange, availments ofFCDU loans were limited tofunding of
theforeign costscomponent ofprojects andavolatility bandwasimplemented bythecommercial banks
tocheck wildfluctuations intheexchange rate.Meanwhile, anExporters Dollar Facility wasestablished
in1994 toprovide exporters wider access tosources offunds.
32. Total exports forthefirstfivemonths of1995showed arecord growth of30.0percent toreach
US$6,484 million. Nearly three fifths oftheUS$1,498.0 million increase intotalexports wasdue
tothestrong performance ofelectronics. Other major items ofexports, which contributed tothehigher
exports during thereview period werecoconut oil,machinery andtransport equipment, garments and
other manufactured exports particularly liquified petroleum gas(LPG).
Imports
33. Aggregate imports in1994amounted toUS$21,333 million, 21.2percent higher thanthe1993
level. TheUS$3,736 million increase wasprincipally supported byhigher imports ofrawmaterials
andintermediate goods (US$1,751 million) aswellasimports ofcapital goods (US$1,258 million),
mostnotablypurchasesoftelecommunicationequipmentandelectricalmachineriesandpowergenerating
andspecialized machines. Consumer goods imports reflected aUS$522 million increase onaccount
ofhigher arrivals ofpassenger cars,miscellaneous durable manufactures, dairy products, beverages
andtobacco, andother foodandliveanimals. Imports under special transactions andmineral fuels
andlubricant alsogrew byUS$181 million andUS$24 million, respectively.
34. Forthefirstfivemonths of1995, totalimports grew by22.0percent orUS$1,797 million
toUS$9,982 million, asallmajor commodity groups exhibited anuptrend. Thebulkoftheincrease
wascontributed byimports ofrawmaterials andintermediate goods particularly inputs toelectronic
exports. There wasalsoasharp increase inpurchases ofcrude petroleum duetoincreases involume
(by36.9percent),tosupporttherequirementsofthepowerandindustrialsectors,andintheinternational
price (23.9 percent).
Direction ofTrade
35. TheUnited States, Japan andtheEuropean Community (EC)remained thecountry 'sleading
trading partners, accounting forabout 60percent oftotalexports andimports in1994. TheUnited
States wasthetopdestination ofPhilippine-made goods (38.1 percent), withtheECadistant second
(17.1 percent). Japan occupied thethirdslot(15.0 percent). Inthecaseofimports, theUnited States
andJapan continued tobetheprincipal sources ofimported goods (18.5 percent and24.3percent,WT/BOP/7
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respectively). TheECandtheMiddle Eastcountries occupied thethird(10.3 percent) andfourth (7.4
percent) slots, respectively. Thelatter wasdueprincipally tooilimports ofthecountry.
36. Forthefirstfivemonths of1995, thetrend remained thesame withtheUnited States, Japan
andtheEuropean Community (EC) remaining asthecountry 'stoptrading partners.
External Debt
37. Thecountry sforeign exchange liabilities atend-December 1994 rosebynearly 10percent
toUS$37,698 million from itslevelayearearlier. Theincrease inthedebtstock wasduemainly
tonetavailments ofmedium- andlong-term loans tofinance various development andsocial services
projects andofshort-term credits aswellasrevaluation adjustments onthirdcurrency denominated
loans. These increases, however, were partially offset byadjustments arising from audit onexport
advances andother adjustments.
38. Atend-March 1995, thecountry sforeign exchange liabilities stood atUS$39,042 million
or3.6percent higher thantheend-1994 level. TheUS$1,344 million increase inthedebtstock was
duemainly revaluation adjustments arising fromthedramatic appreciation oftheJapanese Yenagainst
theUSDollar inearly1995. Thenearly 10percent appreciation oftheJapanese Yen,fromY99.2/US$1
asofend-1994 toY89.6/US$1 bytheendofthefirstquarter of1995resulted intheupward revaluation
ofthedebtstock byUS$1,309 million.
39. Themajority oftheoutstanding external debtconsisted largely ofmedium- andlong-term loans
(85.6 percent). Multilateral andbilateral creditors remained asthetoplenders at63.7percent, banks
andfinancial institutions at14.8percent, bondholders/ noteholders at12.5percent. Theshare of
bonds/notes, which hasrecently beenamajor funding source slightly declined astheMexican criseis
prevented emerging markets from fullytapping international capital markets fortheirfunding. The
remaining 9.0percent were owed tosuppliers andother creditors.
International Reserves
40. Theannual accumulation intheIRoftheBSPobserved since 1991 wassustained in1994 on
thestrength ofsignificant capital inflows. TheIR,which peaked atUS$7,880.3 million inJuly1994,
amounted toUS$7,121.8 million attheclose oftheyearafterrising byUS$1,199.8 million fromthe
1993 level. Thislevelofinternational reserves wasequivalent tothree months worth ofimports of
goods andservices. Inlinewiththestance toeffect anorderly adjustment ofthepeso'sexchange rate
inthefaceoflargecapital inflows, BSP'snetpurchases fromcommercial banks reached $3,138 million
in1994. Other major items ofreceipts in1994 wereprivatization proceeds deposited withtheBSP,
investment income, purchases ofpanned goldandfixed-term deposits. Therateofincrease ofthe
IRwas,however, tempered byoutflows consisting primarily ofnetsalestotheNational Government
fordebtservicing needs aswellastheBSP'spayments ofitsmaturing obligations. Thismove was
inconsonance withthegovernment-announced policy ofusing debtservicing toensure theorderly
adjustment oftheexchange rate.
41. Thefirstquarter of1995wasmarked bythemore cautious stance offoreign investors toward
emerging markets following theMexican financial criseis. However, theIRoftheBSPrebounded
starting April andbyend-August 1995itstood at$8,426 million, upby18.3percent fromtheend-1994
level. Theuptrend wasmade possible mainly bytheresumption ofinflow offoreign investments in
thecountry, which allowed theBSPtopurchase foreign exchange inthemarket. Theinward remittance
ofloans contracted bythepublic sector, including theBSPalsocontributed tohigher IR.WT/BOP/7
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Exchange Rate
42. The1994average exchange rateatP26.42 represented anappreciation of2.6percent against
theUSdollar overthe1993 average. Thesurge inforeign exchange inflow experienced in1994
contributed tothegenerally appreciating trend ofthepesovis-a-vis theUSdollar. TheBSPstabilized
thelarge fluctuations inthedaily ratebystepping upitsforeign exchange purchases andbyputting
inplace administrative measures toensure amore orderly flowofforeign exchange intothebanking
system.
43. During thefirstfourmonths of1995, theexchange rateexhibited adepreciating trend asthe
pesoexperienced heavy speculative attack from theshockwaves oftheMexican financial turmoil.
Also weighing onthepesowere greater dollar demand from oilcompanies following thegradual
phasedown oftheirforeign exchange cover, from government fortheprepayment ofitsParis Club
obligations, andfromregular importers astheypurchased moredollars inanticipation ofatighter dollar
supply ahead. Theweakening oftheUSdollar abroad andexpectation ofafurther increase inUS
interest rateslikewise added pressure onthepesotodepreciate. Thistrend wasreversed, however,
following aresurgence ofcapital inflow particularly inMay, suchthatinAugust 1995, thepeso-dollar
rateaveraged P25.53/US$1, oranappreciation of2.3percent fromthe1994average ofP26.42/US$1.
III. Balance ofPayments Prospects andPolicies for1995
44. Following thepayment oftechnical arrears with theParis Club andthetermination of
rescheduling agreement under Paris Club V,thebalance ofpayments for1995 isexpected toposta
surplus ofUS$1,210 million andthecurrent account deficit isanticipated todecline to3.5percent
ofGNP from4.3percent in1994. Thelower current account deficit willresult fromthe26.4percent
expansion innetservice receipts contributed byoverseas contract workers remittances, pesoconversion
offoreign currency deposits, andmiscellaneous services.
45. Atradedeficit of$8,694 million isanticipated thisyear, withexports growing by23.0percent
andimports by18.5percent. Thetrade deficit willdecline asaratioofGNP from 11.8percent in
1994 to11.3percent in1995.
46. Higher releases ofloans inthepipeline earmarked tofundongoing projects andastable trend
inloanrepayments areexpected toyield asubstantial improvement intheMLT loanaccount. Net
inflows fromforeign investments willcome mainly fromdirect investments andportfolio investments
bynon-residents.
47. Themedium-term planaims toachieve strong andsustainable external payments position.
Theoverall balance ofpayments picture isexpected tostrengthen aspublic savings rise,andasthe
country 'sproductive potential isenhanced bymonetary policy responsive totherequirements ofgrowth
butconsistent withdeclining inflation, coupled withprivatization, higher infrastructure investments,
andfurther liberalization ofthetradeandinvestments regimes. Allthisisexpected tofurther improve
thecurrent account balance.
48. Exports areexpected togrow byanaverage of19.4percent reflecting theimprovements in
supply conditions duetohigher investments, trade liberalization, andmore reliable energy supplies.
Ontheother hand, while adeceleration inimports isprojected overthemedium termfollowing the
decline inimport propensities insome sectors, import volume growth willcontinue tooutpace GNP
growth byawide margin. Thus, amodest reduction inthetrade deficit isexpected, amounting to
about onepercent ofGNP between 1995 and2000. Theservices account willcontinue togrow at
anaverage of15.4percent propelled byincome fromtourism andworker 'sremittances, while interestWT/BOP/7
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payments willgrow slowly. By1998, thecurrent account deficit isprojected atasustainable level
ofabout 1.7percent ofGNP.
49. Thesurplus inthecapital account willremain fairly stable overthemedium term. Most
important, overtime, foreign borrowings willbesurpassed byforeign direct investments which are
projected toincrease byabout 6.0percent perannum between 1995 to2000, reflecting thegreatly
improved climate created byliberalization measures, aswellastheconfidence fostered bysustained
growth ofthePhilippine economy. Theshifttoward non-debt creating inflows would allow theexternal
debt/GNP ratiotodecline to47percent bytheyear2000from57percent in1994. Correspondingly,
debtservice isexpected todecline to8.7percent ofexports ofgoods andservices from 16.9percent
overthesame period.
50. Gross official reserves--adjusted forshort-term market borrowing bytheBSP--are assumed
tobemaintained in1995 at2.65months ofimports ofgoods andservices, roughly thesame import
cover obtained in1994. Over themedium term, reserves willbemaintained at3.0to3.4months of
imports.
IV. Policies andMeasures toCorrect theBalance Payments During theReview Period
IMF-Supported Economic Program
51. ThePhilippine Economic Stabilization Program (ESP) which wasapproved onFebruary 20,
1991wassuccessfullyconcludedonMarch31,1993.Asuccessfulprogramwasconsequentlynegotiated.
OnJune24,1994,theIMFExecutive Board approved anExtended Fund Facility (EFF) inanamount
equivalent toSDR474.5 million forthethree-year period toJune23,1997. Theprogram hasthree
main macroeconomic objectives: a)toliftthePhilippines growth ratetoward thatofitsASEAN
neighbors; b)tobring inflation down toASEAN norms ofabout 4percent, thereby enabling
competitiveness tobemaintained withastable exchange rate;andc)toachieve balance ofpayments
viability.
52. Thethree-year policy strategy tounderpin theabove policy objectives focuses onfourmain
areas:fiscalconsolidation;macroeconomicstability;financialsectorreform;andeconomicliberalization.
Public finances willbeplaced onasound footing, through sustained reductions inconsolidated public
sector deficit andthedomestic debt/GNP ratio. Consistent andprudent financial policies willalsobe
aimed atreducing external imbalances andlowering inflation. Acompetitive andefficient financial
system willbeencouraged, byreducing taxesonintermediation, andpromoting competition. Toexpand
andstrengthen theprivate sector, theoilsector willbederegulated, virtually allquantitative import
restrictions removed andtheprivatization program completed.
53. ThePhilippineeconomyhassofarperformedwell.GNPgrowthof5.2percentin1994exceeded
expectations (3.5percent) andat5.2percent during thefirstsemester of1995, continued togather
pacefromayearago. Inflation hasremained single-digit; itaveraged 9.0percent lastyearcompared
toatarget of9.5percent.
During thefirstseven months of1995, theaverage inflation was6.4percent ,lower thanthetarget
of6.5percent forthisyear. Theexternal sector hasremained manageable. Theyear1994ended with
acurrent account deficit equal to4.3percent ofGNP compared toanobjective of4.8percent.
54. Fiscal operations proved stronger thanexpected withtheNational Government posting asurplus
ofP18.1 billion incontrast toatarget ofaP4.8billion deficit. Thepublic sector borrowing requirementWT/BOP/7
Page10
amounted toP10.7 billion in1994 or0.6percent ofGNP, significantly better thanthetarget of2.4
percent.
Deregulation ofRules andRegulations Governing Foreign Exchange Payments
55. ThePhilippines continues tomaintain anexchange ratesystem thatislargely freeofrestrictions.
There arecurrently onlytwo(2)restrictive measures thathavebeenidentified asbeing subject toArticle
VIII, Sections 2and3oftheIMFArticles ofAgreement. These are:amultiple currency practice
arising from theforward exchange cover provided foroilimports under theOilPrice Stabilization
Fund (OPSF); andtherulethatforeign exchange toservice debts maybepurchased fromthebanking
system onlyonloans orinvestments thathadbeenpreviously registered withtheBSP.
56. Withtheestablished timetable fortheelimination ofthemultiple currency practice associated
withtheforward cover tooilcompanies andwiththeBSPtaking stepstoeliminate thesecond restriction
byplacing allforeign loans andinvestments onthesame footing, thePhilippines notified (pursuant
totheMonetary Board meeting dated September 7,1995) theFund ofthecountry 'sacceptance of
theobligations under Article VIII, Sections 2,3,and4oftheIMFArticles ofAgreement effective
8September 1995.
Reforms oftheForeign Exchange Market
57. Inthefaceofthesurge inforeign exchange inflows in1994, anumber offoreign exchange
reforms wereputinplace tomanage thenetinflow offorex andensure stable andorderly adjustment
intheexchange rate.
58. Thepesogenerally strengthened in1994onaccount ofthesubstantial foreign exchange inflows
attracted bythehigher interest ratedifferential. Thisdeveloped asaresult ofthemore market-oriented
economic policies andother structural reforms adopted inprior years. Theinflows came intheform
ofinvisible receipts particularly overseas workers remittances andforeign currency deposit withdrawals
andconversion intopesos aswellasinvestment inflows largely, theportfolio type. TheBSPactively
purchased dollars intheforeign exchange market toimmediately averttheotherwise rapid appreciation
ofthepeso. AtotalofUS$2,928.9 million waspurchased bytheBSPfromthemarket, representing
more than39percent ofthetotalvolume oftransactions.
59. Complementing theBSP'smarket-based activity wastheadoption ofatwo-pronged approach
tomanage thenetinflow offoreign exchange i.e.,stimulate greater foreign exchange outflows from
andmoderate foreign exchange inflows intothebanking system. Thefirstprong involved thestimulation
ofgreater foreign exchange outflows, through thefollowing: a)lifting oftherestriction onrepatriation
offoreigninvestmentsunderthedebt-to-equityconversionprogramaswellastheremittanceofdividends,
profits, andearnings which accrued thereon; b)encouragement ofPhilippine borrowers whose final
maturitiesfallwithinthenext1-2years,toprepaytheirforeignobligations;c)encouragementofdomestic
investments inPhilippine international bond issues byresidents, whether banks/financial institutions
orotherwise; d)increase intheceiling onoutward investments from US$1 million toUS$3 million
andfurther toUS$6 million perinvestor peryear; ande)strong support fortheaccelerated phase
down oftheforward cover tooilcompanies which wasapproved bythePresident onNovember 8,
1994.
60. Theother prong oftheBSPstrategy involved themoderation oftheinflow offoreign exchange
intothecountry through thefollowing: a)imposition ofprior approval requirement onallforward
transactions withnon-residents; b)reduction inthereserve requirements against deposit anddeposit
substitute liabilities ofbanks andnon-banks to17percent inorder toreduce thegeneral interest rateWT/BOP/7
Page11
level andnarrow thedomestic-international interest differentials; c)removal oftherestrictions on
automatic conversion intopesos ofacertain portion offoreign loans. Loan proceeds intended tofund
localcostsmaybeinwardly remitted andsoldtothebanking system ordeposited inforeign currency
deposit units(FCDU) oroffshore accounts. Amounts intended tofinance foreign exchange costsshall
bepaiddirectly tothesupplier/beneficiary concerned; d)limitation offoreign loanapprovals including
FCDU loans tothose earmarked forforeign exchange costs onlyexcluding theexporters, direct and
indirect, aswell aspublic sector borrowers; ande)reduction intheallowable oversold foreign
exchange position limitofcommercial banks from 15percent to5percent ofunimpaired capital by
November 18,1994. (Theallowable oversold andoverbought foreign exchange position limit of
commercial banks wareadjusted anew from5percent to10percent andfrom25percent to20percent,
respectively, ofunimpaired capital intheearlypartof1995. Thisistocontain speculation intheforeign
exchange market following theMexican financial criseis.)
61. TheBSP, inaneffort tostrengthen itsmonitoring offoreign exchange flows, alsorequested
IPO(initial public offering) -issuing companies tonotify BSPwithin fivedays, ofthereceipt ofthe
foreign exchange raised through thestockissueoutside thePhilippines. Furthermore, theBSPsupported
theinitiative oftheBankers Association ofthePhilippines (BAP) toestablish a"volatility band" within
which theexchange ratecould move inagiven day. Under themechanism, which tookeffect during
thelatter partoftheyear, theexchange rateisallowed tofluctuate by11/2percent above orbelow
theaverage exchange rateoftheprevious day'safternoon transactions atthePhilippine Dealing System
(PDS). (Under thePDS, foreign exchange transactions areexecuted viaanautomated dealing network
towhich allauthorized agent banks arelinked toconduct off-floor interbank foreign exchange trading.)
Debt Management Strategy
62. Thebasic thrust ofexternal debtmanagement operations in1994 and1995 continued tobe
focused onensuring thatnewborrowings obtained aredirected toproductive andpriority areas, and
arewithin thecountry sdebtservicing capacity, andconsistent withefforts tomaintain stability in
theforex market.
63. In1994, theincreasing receptivity oftheinternational capital markets toemerging markets
allowed thePhilippine private sector tocontinue totaptheinternational market forfunds. Asaresult,
theprivate sector foreign loanavailment exceeded thatofgovernment. Government borrowings were
gradually limited toconcessional loans tofinance urgent priority projects. Arescheduling ofParisClub
loans, involving US$497.9 million andmaturing between August 1,1994 andDecember 31,1995
wasconcluded inJuly1994. However, duetotheunexpected favorable foreign exchange position,
thegovernment decided toforego therescheduling agreement.
V. Structural Adjustment Measures
64.Theauthorities inthePhilippines realize thevalue ofpursuing further structural reforms tosustain
themomentum ofgrowth andtoenable local industries tofacetheemerging global competitive
environment.
Tariff Reform
65. In1994, theGovernment tookamajor stepinfurther opening uptheeconomy totrade. The
authorities inthePhilippines initiated amedium-term program toreduce tariff ratesandrationalize
thetariff structure. Under thisprogram, themaximum tariff ratewillimmediately bereduced from
50percent to30percent, while thenumber ofbasic rateswillbereduced tofour. Thetoptworates
willthenbegradually phased outoveraneight-year period sothatbytheyear2003, there willonlyWT/BOP/7
Page12
betwobasic ratesof3and10percent. Implementation ofthisprogram isproceeding infourstages.
Thefirsttwostages werecompleted inJulyandSeptember of1994, when Executive Order (EO)Nos.
189and204introduced tariff reduction timetables forcapital goods andimports ofthetextile sector,
respectively. InJuly1995, EONo.264wasissued specifying thetimetable forallother industrial
goods. Finally, oncethenecessary legislation hasbeenenacted toremove quantitative restrictions
onagricultural products, afourth EOwillsetthenewtariff ratesforthese goods.
66. There areonlyfourtemporary exceptions tothenewtariff structure. Thefirstpertains tothe
zerotariff rateonsome 300capital goods asspecified under Republic Act(R.A.) No.7369 andon
imports ofmachinery, equipment andaccompanying spare parts usedinthemanufacture ofexports
products (R.A. No.7844). However, theseexemptions willapply onlyuntil1998. Thesecond relates
tothose industries declared as"pioneer" bytheBoard ofInvestments, which mayinitially receive
protective tariff equal tonomore thandouble theratesspecified under thetariff reduction program.
However, by2003, these tariffs willbebrought down tothestandard 10percent maximum rate. The
thirdcovers agricultural products thatwere tariffied under EONo.8,forwhich rateswerereduced
to50percent byAugust 1995 andwillbebrought within thestandard structure bytheyear2000.
Thefourth concerns goods tobetariffied under theUruguay Round Agreement.
Import Liberalization Program
67. TheImport Liberalization Program aimstoprovide domestic producers access torawmaterials
andintermediate goods intheinternational market andtoexpose them toforeign competition. This
istopromote theefficient utilization offactor resource inputs andenhance thelong-term viability of
localindustries inthefaceoftheemerging global competitive environment.
68. AsofJune1995, therearestill186items (based onthe1977Philippine Standard Classification
Code) which remain tobeliberalized under thecountry 'sImport Liberalization Program. Thisis
expected tobereduced further uponissuance ofanappropriate circular bytheMonetary Board ofthe
BSPproviding fortheliberalization oftheimports ofbrand newvehicles.
69. Inlinewiththecommitments totheGATT/WTO, thePhilippines iscommitted toremove all
quantitative restrictions onagricultural products, except rice,infavor oftariffication. Tariff rates
ontheseproducts haveyettobedecided, buttheywillnotexceed thestatutory maximum of100percent,
andwillthenbereduced according toasettimetable tonomore than40percent bytheyear2003.
VI. Systems andMethods ofRestrictions
70. ImportsintothePhilippinesarefreeunlessotherwisesubjecttotherequirementsofpriorapproval
byappropriate government agencies/committees concerned andresponsible forimplementing legislation
prohibiting/regulating imports. TheTariff andCustoms Code of1978(Presidential Decree No.1464)
provides theprimary legalbasisforthecontrol andregulation ofimports inthePhilippines. However,
thereareotherspecial lawsthatprohibit/regulate theimports ofsomecommodities anddesignate certain
government agencies/committees toadminister import regulations.WT/BOP/7
Page13
Table 1-Gross national product (GNP) byexpenditure shares ,1990 -firstsemester 1995
(Million pesos, atconstant 1985 prices)
First Semester
1990 1991 1992 1993 1994 1994 1995
1.Personal Consumption Expenditures 531772 543788 561509 578589 600106 285999 297823
2.Gen. Government Consumption
Expenditures57042 55826 55337 58746 58710 29139 30372
3.Gross Domestic Capital Formation 172951 143047 154252 171416 187806 92236 104910
A.Fixed Capital Formation 165364 141903 150974 169144 183397 90453 101344
B.Increase inStocks 7587 1144 3278 2272 4409 1783 3566
4.Exports ofGoods andServices 217865 231515 241431 256451 307205 144539 166846
5.Less: Imports ofGoods and
Non-Factor Services 269148 266139 289273 322548 379252 182834 213871
6.Statistical Discrepancy 10208 8485 -4315 -8498 -8669 -1685 -865
Expenditures onGross Domestic
Product (GDP) 720690 716522 718941 734156 765906 367394 385215
NetFactor Income from theRest
oftheWorld 3696 10297 18198 12782 19986 9085 10988
Expenditures onGross National Product 724386 726819 737139 746938 785892 376479 396203
Gross National Product
(Million U.S. Dollars) 1/ 38930 39061 39616 40142 42236 20233 21293
Memo Items:
GNP percapita (Pesos) 11712 11561 11282 11149 11450 5519 5672
GNP percapita (USdollars) 629.43 621.32 606.32 599.17 615.35 296.60 304.83
Exchange Rate(P/US$ 1ratein1985) 18.6073 18.6073 18.6073 18.6073 18.6073 18.6073 18.6073
Population (inmillion persons) 60.70 63.69 65.34 66.98 68.62
1\ Derived bydividing PesoGNP atconstant 1985 prices byPesos/US$1 ratein1985.
Source: National Statistical Coordination Board (NSCB)WT/BOP/7
Page14
Table 2-Gross national product (GNP) byindustrial origin -1990 -firstsemester 1995
(Million pesos atconstant 1985 prices)
1990 1991 1992 1993 1994 1994 1995
1.Agriculture, Fishery and 160734 162937 163571 167053 171472 83819 84188
Forestry
2.Industrial Sector 255548 248718 247384 251459 266686 125992 135989
A.Mining andQuarrying 11091 10770 11495 11571 10763 5639 5795
B.Manufacturing 183925 183111 179947 181289 190374 88132 94695
C.Construction 41858 35285 36261 38344 42488 21239 23219
D.Electricity, GasandWater 18674 19552 19681 20255 23061 10982 12280
3.Services (Tertiary) Sector 304408 304867 307986 315644 327748 157583 165038
A.Transportation,
Communication andStorage1108 41291 41870 42941 44893 22012 23262
B.Trade 107428 108002 109780 112479 116923 53729 56665
C.Finance andHousing 70114 69356 69751 71178 74019 36943 38639
D.Services 85758 86218 86585 89046 91913 44899 46472
Gross Domestic Product (GDP) 720690 716522 718941 734156 765906 367394 385215
NetFactor Income from the
RestoftheWorld 3696 10297 18198 12782 19986 9085 10988
Gross National Product (GNP) 724386 726819 737139 746938 785892 376479 396203
Gross National Product 38930 39061 39616 40142 42236 20233 21293
(Million U.S. Dollars) 1/
1/ Derived bydividing PesoGNP atconstant 1985 prices byPesos/US$1 ratein1985.
Source: National Statistical Coordination Board (NSCB)
Table 3-National government cashoperations
(Inbillion pesos)
January-June
1990 1991 1992 1993 1994 1994 1995
I. Revenue 180.9 220.8 242.7 260.4 335.2 162.9 182.1
Taxrevenue
Non-tax revenue151.7
29.2182.3
38.5208.7
34.0230.2
30.2271.4
63.8134.3
28.6148.5
33.6
II. Expenditures 218.1 247.1 258.7 282.3 317.1 151.0 173.2
ofwhich: Interest payments
Netlending andequity
Subsidy71.1
2.8
13.274.9
6.0
8.079.5
-7.0
4.076.5
9.9
6.179.1
7.2
7.042.6
1.6
3.836.6
3.9
2.2
III. Overall surplus/deficit -37.2 -26.3 -16.0 -21.9 18.1 11.9 8.9
IV. Financing 37.2 26.3 16.0 21.9 -18.1 -11.9 -8.9
Domestic
Foreign33.1
4.119.4
6.91.6
14.49.0
12.9-4.4
-13.7-4.7
-7.2-2.0
-6.9
Source: Bureau oftheTreasury.WT/BOP/7
Page15
Table 4-Monetary indicators 1/asofdates indicated
(Inmillion pesos)
Jun Jun
ITEM 1993 1994 1994 1995
I.Liquidity
Domestic Liqudity 480329 607614 478910 629404
A.Money Supply 133877 151952 128163 151794
1.Currency inCirculation 84083 95675 74981 88720
2.PesoDemand Deposits 49794 56277 53182 63074
B.Savings Deposits 290932 410699 304247 433243
C.Time Deposits 50907 40353 42599 39308
D.Deposit Substitutes 4613 4610 3901 5059
II.Credits
A.NetDomestic Assets 531006 665970 520635 719544
1.Monetary Authorities 139680 121043 81948 78004
2.Deposit Money Banks 391326 544927 438687 641540
B.NetDomestic Credits 682064 821551 691465 911518
1.ByEnd-User
Public Sector 274080 299812 259735 301828
Private Sector 407984 521739 431730 609690
2.ByInstitution
Monetary Authorities 188493 156447 143503 137617
Deposit Money Banks 493571 665104 547962 773901
III.Reserve
Money171746 182413 148482 165792
A.Currency Issued Netof
Cash inTreasury Vault 97849 111330 87140 102311
B.DMB Reserve Balances withBSP 73897 71083 61342 63481
1/ Datareflect thetransfer ofnon-performing assets/liabilities oftwomajor government banks totheNational Government.WT/BOP/7
Page16
Table 5-Consumer Price Index
(1991- January-August 1995 -1988=100)
Item 1991 1992 1993 1994 1994 1995
Philippines
AllItems 152.0 165.6 178.2 194.3 192.4 205.2
Food, Beverages &Tobacco 147.2 157.3 166.9 180.7 178.8 190.9
Clothing 140.6 155.7 167.3 175.3 174.3 180.2
Housing &Repairs 159.6 187.6 211.3 238.9 236.6 260.0
Fuel, Light andWater 173.3 183.7 197.1 210.7 209.4 216.3
Services 171.4 183.6 198.0 215.4 212.9 226.9
Miscellaneous 140.0 158.2 171.5 190.3 189.6 193.5
Metro Manila
AllItems 153.6 172.4 190.3 209.8 208.3 222.8
Food andbeverages 144.6 154.8 165.9 177.6 176.0 186.1
Clothing 131.8 146.5 157.8 167.8 167.0 172.0
Housing andrepair 168.0 213.1 248.7 286.9 285.1 319.1
Fuellightandwater 176.6 186.9 200.1 211.7 212.7 210.7
Services 166.4 176.7 196.0 219.3 216.8 229.7
Miscellaneous 136.2 156.9 170.4 188.1 187.2 191.4
Inflation rate: Philippines
AllItems 18.7 8.9 7.6 9.0 9.7 6.6
Food, Beverages &Tobacco 15.4 6.9 6.1 8.3 9.1 6.3
Clothing 16.9 10.7 7.5 4.8 5.1 3.4
Housing &Repairs 20.2 17.5 12.6 13.1 13.5 10.2
Fuel, Light &Water 27.4 6.0 7.3 6.9 7.5 2.9
Services 32.6 7.1 7.8 8.8 9.7 6.4
Miscellaneous 16.2 13.0 8.4 11.0 11.3 2.2
Source: National Statistics Office (NSO)WT/BOP/7
Page17
Table 6-Balance ofPayments 1/-1993 -JantoMay 1995
(Inmillion US$)
Jan-May Jan-May
Item 1993 1994 1994 1995p/
II.Current Account Transactions
A.Merchandise Trade (6,222) (7,850) (3,199) (3,498)
Exports 11,375 13,483 4,986 6,484
Imports 17,597 21,333 8,185 9,982
B.Services 2,540 4,074 1,680 1,780
Receipts 7,497 10,550 3,771 6,175
Payments 4,957 6,476 2,091 4,395
C.Transfers 699 936 427 367
Inflow 746 1,041 476 422
Outflow 47 105 49 55
Current Account, Balance (2,983) (2,840) (1,092) (1,351)
II.Capital andFinancial Account
A.Medium andLong-Term Loans 2,105 1,289 413 0
Inflow 4,853 4,332 1,448 1,194
Outflow 2,748 3,043 1,035 1,194
B.Foreign Investments 599 1,424 787 453
Inflow 3,394 5,142 2,334 2,292
Outflow 2,795 3,718 1,547 1,839
C.Purchase ofCollateral 0 0 0 0
D.NetShort-Term Capital (148) 1,002 (54) 1,515
E.Change inCommercial Banks 'NFA (547) 465 849 302
I.Errors andOmissions 264 202 308 (1,481)
Capital andFinancial Account, Balance 2,273 4,382 2,303 789
III.Others
A.Monetization ofGold 113 154 62 67
B.Allocation ofSDR 0 0 0 0
C.Revaluation Adjustments 431 106 65 297
Ofwhich: Debt Reduction 97 1
IV. Overall BOP Position (166) 1,802 1,338 (198)
1/ With Rescheduling
p/ Preliminary
Source: Bangko Sentral ngPilipinasWT/BOP/7
Page18Table 7-Exports byMajor Commodity Group forperiods indicated
(Volume in000MT.; unitprice inUS$/MT; f.o.b. value inUS$million)
January-May
Commodities 1993 1994 1994 1995
Volume Price Value Volume Price Value Volume Price Value Volume Price Value
COCONUT PRODUCTS 532 639 174 377
Copra 27 265 7 24 364 9 8 360 3 11 383 4
Coconut Oil 859 416 358 849 560 475 210 523 110 496 602 311
Desiccated Coconut 93 897 84 75 934 70 28 962 27 30 934 27
Copra Meal/Cake 488 93 45 574 92 53 160 94 15 346 82 29
Others 38 32 19 6
SUGAR AND PRODUCTS 129 77 57 41
Centrifugal &Refined 324 314 102 182 333 61 150 313 47 82 426 35
Molasses 500 51 26 255 53 14 186 50 9 77 70 5
Others 1 2 1 1
FRUITS AND
VEGETABLES439 429 194 205
Canned Pineapple 194 486 94 215 419 90 79 458 36 73 409 30
Pineapple Juice 34 229 8 45 208 9 22 220 5 24 194 5
Pineapple Concentrates 37 606 22 38 562 22 14 588 8 14 533 8
Bananas 1153 196 226 1155 186 215 493 191 94 511 183 93
Mangoes 30 879 27 29 1016 30 21 981 21 35 903 31
Others 62 63 30 38
OTHER AGRO-BASED
PRODUCTS476 530 207 232
Fish, Fresh orPreserved 73 4663 343 79 4830 379 32 4680 152 27 5408 146
Ofwhich:
Shrimps &
Prawns23 9884 225 22 10987 246 9 10588 100 8 12635 95
Coffee, Raw, notRoasted 1 1206 1 4 2066 8 1 1327 1 2 2958 4
Abaca Fibers 18 1074 19 22 922 20 10 743 8 7 1117 10
Tobacco,Unmanufactured 17 1494 26 16 1437 23 7 1348 9 5 1388 8
Natural Rubber 25 484 12 22 613 14 8 550 4 11 1154 13
Ramie Fibers, Rawor
Processed0 1294 1 1 1208 1 1 1277 1
-----1803 0a/
Seaweeds, Dried 22 837 18 24 933 22 11 817 9 13 1257 15
Rice -- 938 0a/ 0 0 0 0 0 0 0 0 0
Others 56 63 23 36
FOREST PRODUCTS 1/ 45 26 14 10
Logs 1 89 0a/ 4 46 0 0 0 0 0 0 0
Lumber 89 292 26 41 236 10 26 228 6 30 248 8
Plywood 40 435 17 10 437 4 7 415 3 4 324 1
Veneer Sheets/Corestocks 7 373 2 30 399 12 13 400 5
-----700 0a/WT/BOP/7
Page19January-May
Commodities 1993 1994 1994 1995
Volume Price Value Volume Price Value Volume Price Value Volume Price Value
Others 0 0 0 1
MINERAL PRODUCTS 686 780 314 374
Copper Concentrates 334 327 109 293 385 113 130 324 42 118 445 52
Copper Metal 137 1933 264 137 1963 270 62 1774 109 55 2772 152
Gold 2/ 151 339 51 176 370 65 79 371 29 89 369 33
IronOreAgglomerates 3919 16 62 4666 16 74 1990 16 32 2351 16 38
Chromium Ore 77 116 9 72 117 8 32 123 4 22 150 3
Nickel 0 0 0 0 0 0 0 0 0 0 0 0a/
Others 191 250 98 96
PETROLEUM PRODUCTS 136 132 47 57
MANUFACTURES 8729 10615 3897 5045
Elec&ElecEqpt/Parts &
Telecom3551 4984 1802 2653
Garments 2272 2375 864 912
Textile Yarns/Fabrics 118 173 63 79
Footwear 168 210 93 86
Travel Goods andHandbags 54 76 28 44
Wood Manufactures 105 129 46 54
Furnitures &Fixtures 203 240 89 112
Chemicals 262 306 120 136
Non-Metallic Mineral
Manufactures87 96 35 40
Machinery &Transport
Equipment363 469 176 224
Processed Food and
Beverages271 303 119 124
Iron&Steel 50 53 19 11
Baby Carr., Toys &
Sporting Goods168 190 56 77
Basketwork, Wickerwork,
etc.132 134 58 58
Misc Manufactured
Articles, nes187 194 81 78
Others 738 683 248 357
SPECIAL TRANSACTIONS 38 74 22 40
RE-EXPORTS 165 181 60 103
TOTAL EXPORTS 11375 13483 4986 6484
a/ Lessthanonemillion US$
1/ Volume in000cubic meters; unitprice inUS$/cu.m.
2/ Volume in000ounces; unitprice inUS$/oz.
-- Lessthanonethousand metric tonsWT/BOP/7
Page20Table 8-Imports byMajor Commodity Group ForPeriods Indicated
(Volume in000Metric Tons; UnitPrice inUS$/MT; FOB Value inUS$M)
Commodities 1993 1994 1994 1995
Volume Price Value Volume Price Value Volume Price Value Volume Price
Value
I.Capital Goods 5610 6868 2620 2909
Power Generating &Specialized Machines 2078 2502 882 1091
Office &EDP Machines 274 333 124 177
Telecommunication Eqpt. &Elect. Mach. 1914 2531 949 1133
Land Transport Eqpt. excl. Passenger Cars
&Motorized Cycle 370 401 153 224
Aircraft, Ships &Boats 723 799 389 148
Prof. Sci.&Cont. Inst.; Photo-
graphic Eqpt. &Optical Goods 251 302 123 136
II.Raw Materials &Intermediate
Goods7855 9606 3752 4642
Unprocessed RawMaterials 981 1278 541 639
Wheat 1798 145 260 2147 144 324 987 154 152 912 150 137
Corn 0 0 0 0 0 0 0 0 0 52 135 7
Unmilled cereals excl. rice&corn 1 2 1 1
Crude materials, inedible 664 862 357 445
Pulp&waste paper 56 63 22 48
Cotton 58 1154 67 77 1481 107 41 1341 55 25 1680 42
Syn.fibers 45 1702 77 64 1855 115 28 1679 47 23 2174 50
Metalliferous ores 227 299 112 144
Others 237 278 121 161
Tobacco, unmanufactured 56 90 31 49
Semi-Processed RawMaterials 6874 8328 3211 4003
Feeding stuffs foranimals 959 244 234 813 236 195 258 252 65 486 235 114
Animal &vegetable oils&fats 24 38 14 14
Chemical 1668 2016 779 938
Chemical compounds 468 524 211 258
Medicinal &pharmaceutical chem. 198 262 106 111
Urea 596 112 67 689 116 90 197 117 23 144 153 22
Fertilizer excl. urea 615 94 58 690 116 80 218 115 25 206 131 27
Artificial resins 449 576 214 300
Others 428 484 200 220
Manufactured goods 2590 2893 1179 1439
Paper &paper products 308 614 189 422 583 261 183 568 104 192 755 145
Textile yarn, fabrics &made-up articles 704 780 306 377
Non-metallic mineral manufactures 104 118 45 75
Iron&steel 2427 338 820 2693 371 870 1124 311 350 1549 323 500
Non-ferrous metals 209 260 96 146
Metal products 366 391 194 106
Others 198 213 84 90WT/BOP/7
Page21Commodities 1993 1994 1994 1995
Volume Price Value Volume Price Value Volume Price Value Volume Price
Value
Embroideries 468 411 152 202
Mat/Acc forthemftr. ofelect. eqpt. 1808 2711 1005 1257
Ironore,notagglomerated 4021 20 82 3254 15 64 861 20 17 1860 21 39
III.Minerals Fuels &Lubricant 2016 2040 734 1063
Coal, Coke 968 32 31 1109 37 33 510 29 15 705 30 21
Petroleum Crude 1/ 82.80 15.90 1316 86.04 20.24 1308 35.78 13.67 489 48.99 16.94 830
Others 1/ 28.59 23.41 669 35.73 20.13 699 12.34 18.64 230 6.85 25.26 212
IV.Consumer Goods 1587 2109 779 974
Durable 842 1124 378 565
Passenger cars&motorized cycle 471 625 204 330
Home appliances 59 95 23 55
Misc. manufactures 312 404 151 180
Non-Durable 745 985 401 409
Food &liveanimals chiefly forfood 637 815 313 374
Dairy products 164 1590 260 210 1537 316 92 1533 141 81 1642 158
Fish&fishpreparation 120 406 49 126 353 53 50 460 23 57 456 29
Rice 202 177 36 0 0 0 0 0 0 3 333 1
Fruits &vegetables 66 99 31 34
Others 226 347 118 152
Beverages &tobacco mfture. 77 138 76 18
Articles ofapparel, access. 31 32 12 17
V.Special Transactions 529 710 300 394
Articles temporarily imported &exported 266 434 179 189
Others 263 276 121 205
Total imports 17597 21333 8185 9982
1/Volume inmillion barrels, unitprice inUS$/barrel.WT/BOP/7
Page22Table 9-Direction ofTrade -Forperiods indicated
(Inmillion US£)
1993 1994 Jan-May 1994 Jan-May 1995
Country Exports Imports BOT Exports Imports BOT Exports Imports BOT Exports Imports BOT
TOTAL 11,375 17,597 (6,222) 13,483 21,333 (7,850) 4,986 8,185 (3,199) 6,484 9,982 (3,497)
NORTH AMERICA 4,602 3,681 921 5,379 4,100 1,279 1,974 1,617 357 2,322 1,878 444
Canada 195 152 43 196 139 57 76 46 30 80 90 (10)
U.S.A.(Inc.Hawaii &
Alaska)4,370 3,522 848 5,143 3,941 1,202 1,886 1,562 324 2,235 1,781 454
Others 37 7 30 40 20 20 12 9 3 7 7 0
EUROPE 2,074 2,258 (184) 2,428 2,797 (369) 882 1,136 (254) 1,192 1,408 (216)
European Community 1,971 1,782 189 2,302 2,193 109 837 889 (52) 1,148 1,062 86
France 208 202 6 185 235 (50) 83 84 (1) 77 129 (52)
Fed.Rep. ofGermany
(W&E)587 613 (26) 665 761 (96) 261 272 (11) 286 387 (101)
Italy 85 134 (49) 90 165 (75) 34 82 (48) 42 85 (43)
Netherlands 361 239 122 516 279 237 142 101 41 320 120 200
United Kingdom 541 380 161 639 389 250 239 147 92 328 225 103
Others 1/ 189 214 (25) 207 364 (157) 78 203 (125) 95 116 (21)
Finland 11 79 (68) 20 76 (56) 7 41 (34) 6 24 (18)
Romania 3 15 (12) 1 12 (11) 1 8 (7) 0 4 (4)
Sweden 18 65 (47) 18 73 (55) 6 32 (26) 9 42 (33)
Switzerland 26 107 (81) 28 121 (93) 11 48 (37) 9 61 (52)
U.S.S.R. (Fed. ofInd.
States)10 91 (81) 20 187 (167) 5 69 (64) 5 155 (150)
Others 35 119 (84) 39 135 (96) 15 49 (34) 15 60 (45)
ASIA 4,147 9,071 (4,924) 5,057 11,586 (6,529) 1,895 4,303 (2,408) 2,702 5,117 (2,415)
Japan 1,817 4,029 (2,212) 2,024 5,188 (3,164) 779 1,958 (1,179) 1,047 2,217 (1,170)
China People 'sRepof
(Mainland)174 181 (7) 164 294 (130) 69 100 (31) 78 208 (130)
NIES 1,492 3,775 (2,283) 2,105 4,887 (2,782) 776 1,800 (1,024) 1,054 2,116 (1,062)
Hongkong 547 876 (329) 651 1,113 (462) 263 446 (183) 315 479 (164)
Korea, South 221 897 (676) 292 1,107 (815) 127 405 (278) 182 525 (343)WT/BOP/7
Page231993 1994 Jan-May 1994 Jan-May 1995
Country Exports Imports BOT Exports Imports BOT Exports Imports BOT Exports Imports BOT
Singapore 378 978 (600) 709 1,441 (732) 218 487 (269) 359 533 (174)
China, Rep. of(Taiwan) 346 1,024 (678) 453 1,226 (773) 168 462 (294) 198 579 (381)
South EastAsia 418 929 (511) 723 1,042 (319) 254 381 (127) 507 500 7
Indonesia 48 343 (295) 71 367 (296) 27 123 (96) 56 206 (150)
Malaysia 160 356 (196) 222 431 (209) 72 167 (95) 106 191 (85)
Thailand 169 170 (1) 364 197 167 137 74 63 302 96 206
Brunei Darussalam 1 51 (50) 3 35 (32) 1 14 (13) 1 0 1
Others 2/ 40 9 31 63 12 51 17 3 14 42 7 35
South Asia3/ 232 145 87 30 169 (139) 10 62 (52) 13 75 (62)
India 225 110 115 13 131 (118) 5 49 (44) 5 55 (50)
Others 14 12 2 11 6 5 7 2 5 3 1 2
OCEANIA 144 679 (535) 172 800 (628) 55 328 (273) 66 393 (327)
Australia 115 471 (356) 140 587 (447) 43 232 (189) 54 289 (235)
NewZealand 11 102 (91) 18 129 (111) 7 55 (48) 8 53 (45)
Pacific Island 4/ 7 80 (73) 4 76 (72) 2 38 (36) 1 40 (39)
Others 11 26 (15) 10 8 2 3 3 0 3 11 (8)
MIDDLE EAST 261 1,470 (1,209) 238 1,570 (1,332) 107 603 (496) 87 971 (884)
Iran 0 69 (69) 1 69 (68) 0 48 (48) 0 1 (1)
Iraq 0 0 0 0 0 0 0 0 0 0 0 0
Kuwait 11 193 (182) 9 80 (71) 4 52 (48) 3 20 (17)
Saudi Arabia 68 741 (673) 59 945 (886) 24 293 (269) 28 774 (746)
U.A.E.(Incl. AbuDhabi
&Dubai)149 253 (104) 130 216 (86) 64 87 (23) 39 84 (45)
Others 33 214 (181) 39 260 (221) 15 123 (108) 17 92 (75)
OTHERS 147 438 (291) 209 480 (271) 73 198 (125) 115 215 (99)
Central America 67 26 41 109 12 97 36 6 30 64 3 61
South America 37 267 (230) 38 349 (311) 11 135 (124) 30 148 (118)
Brazil 4 203 (199) 9 246 (237) 2 101 (99) 10 104 (94)
Africa 32 138 (106) 42 109 (67) 19 48 (29) 15 61 (46)
Others 11 7 4 20 10 10 7 9 (2) 6 3 4
1/Comprising Belgium, Denmark, Ireland, Luxembourg, Spain, Portugal andGreece
2/Comprising Laos andVietNam
3/Comprising Banngladesh, Myanmar, Nepal, Pakistan andSriLanka
4/Comprising FijiIsland, Papua Territory (New Guinea), Solomon Island, Tonga Islands, Vanuatu (New Hebrides) &Western SamoaWT/BOP/7
Page24
Table 10-Non-merchandise trade ,1993 JantoMay 1995
(Inmillion US$)
Jan-May Jan-May
Item 1993 1994 1994 1995
Non-Merchandise Trade, Net 2540 4074 1680 1780
Earnings 7497 10550 3771 6175
Freight &Merchandise Insurance 156 185 74 81
Other Transportation 71 54 22 15
Travel 1178 973 406 431
Investment Income 548 773 278 358
Profits, Earnings &Dividiends 70 116 31 47
Interest Income 478 657 247 311
Central Bank 219 322 145 114
Commercial banks 259 335 102 197
Government 56 19 7 9
ESF 0 0 0 0
Others 56 19 7 9
Non-Merchandise Insurance 12 4 2 3
Personal Income 2276 3009 1019 1777
PesoConversions ofFCDs 1680 2815 1136 2006
Commissions &Fees 173 207 66 90
Construction Activity 10 6 1 2
Operating Expense 476 695 239 356
Other Services 861 1810 521 1047
Payments 4957 6476 2091 4395
Freight &Merchandise Insurance 1176 1300 525 626
Other Transportation 278 181 76 85
Travel 130 196 59 132
Investment Expense 1854 1809 704 853
Profits, Earnings &Dividends 326 311 125 145
Reinvested Earnings 43 29 5 0
Interest Expense 1485 1469 574 708
Government 18 15 6 5
Non-Merchandise Insurance 64 77 17 35
Personal Income 13 13 7 4
Commissions &Fees 150 275 58 165
Construction Activity 23 23 16 16
Other Services 1251 2587 623 2474WT/BOP/7
Page25
Table 11-Transfers -1993 JantoMay 1995
(Inmillion US$)
1993 1994 1994 1995
Item Jan-May Jan-May
Transfers, Net 699 936 427 367
Inflow 746 1041 476 422
Private Transfers 445 565 261 202
Taxes andFees 0 0 0 0
Institutional Remittances 52 31 13 16
Personal Remittances 311 443 188 166
Migrants Transfers 0 0 0 0
Voluntary Relief Agencies 67 76 45 20
Personal effect 1 0 0 0
Debt Conversions 14 15 15 0
Central Government Transfers 301 476 215 220
U.S. Veterans Administration 114 114 48 49
U.S. Bilateral Agreement 139 72 32 35
U.N. Agencies 0 0 0 0
Bilateral agreement withother countries
30 272 135 126
Others 18 18 0 10
Outflow 47 105 49 55
Private Transfers 47 105 49 55
Institutional Remittances 1 19 6 8
Personal Remittances 32 76 41 27
Personal Effects 0 0 0 0
Other Capital Transfers 14 10 2 20
Central Government Transfers 0 0 0 0
Philippine Contributing toInternational
Organizations 0 0 0 0
PesoSupport ofForeign Assistance Programs 0 0 0 0WT/BOP/7
Page26
Table 12-Medium andlong-term loaninflows -1993 -JantoMay 1995
(Inmillion US$)
Jan-May Jan-May
Item 1993 1994 1994 1995
I.Pipeline 2571 2396 1069 1092
A.Multilateral 994 814 334 341
1.ADB 287 349 94 70
2.World Bank 671 289 151 229
3.Others 36 176 89 42
B.Bilateral 1299 1243 587 613
1.US 3 0 0 0
2.Japan 150 150 92 48
3.Others 150 150 92 48
C.Banks andFls 263 272 124 116
D.Others 15 67 24 22
II.NewMoney 1464 1280 179 102
A.Multilateral 0 10 0 0
1.ADB 0 0 0 0
2.World Bank 0 0 0 0
3.Others 0 0 0 0
B.Bilateral 401 127 3 0
1.US 0 0 0 0
2.Japan 311 25 0 0
3.Others 90 102 3 0
C.Banks andFls 84 114 6 100
ofwhich: Bonds 0 0 0 0
D.Others 979 1029 170 2
III.Rescheduled 818 656 200 0
A.Paris Club 211 178 0 0
Principal 131 140 0 0
Interest 80 38 0 0
B.KBs 607 478 200 0
ofwhich: Bonds 0 0 0 0
IV.Others 1/ 0 0 0 0
Total 4853 4332 1448 1194
1/ Represents financing ofspare parts andleasing ofaircraft byPAL.WT/BOP/7
Page27
Table 13-Foreign investments, 1993 -JantoMay 1995
(Inmillion US$)
Jan-May Jan-May
Item 1993 1994 1994 1995
Foreign Investments, Net 599 1424 787 453
Inflow 3394 5142 2334 2292
Direct Investments 1137 2163 1178 809
Resident 112 706 261 166
Residents 'Withdrawal ofForeign
Investments Abroad112 706 261 166
Non- Resident 1025 1457 917 643
NewForeign Equity Investments
inthePhilippines 334 796 684 297
Reinvested Earnings 43 29 5 0
Bond Conversion 45 0 0
Debt Conversions 193 2 2 0
Technical FeesandOther
Converted intoEquity 5 36 23 0
Imports Converted intoInvestments 0 1 0 0
Bank Inter-Branch Operations 313 481 140 323
Others 137 67 63 23
Portfolio Investments 2257 2979 1156 1483
Non- Resident 2257 2979 1156 1483
Outflow 2795 3718 1547 1839
Direct Investments 374 302 68 220
Resident 374 302 68 220
Residents 'Investment Abroad 323 112 41 58
Bank Inter-Branch Operations 51 190 27 162
Non- Resident ... ... ... ...
Portfolio Investments 2421 3416 1479 1619
Resident 1061 1338 611 782
Non- Resident 1360 2078 868 837WT/BOP/7
Page28
Table 14-International reserves oftheCentral Bank ofthePhilippines 1/
(Inmillion US$)
Total
Assets
(2+3)Reserve Position inthe
FundBSBGross Reserves
Total
(4to7)Gold SDRs Foreign
InvestmentsForeign
Exchange
(1) (2) (3) (4) (5) (6) (7)
1993 Jan 5,705.45 120.33 5,585.12 921.11 18.26 4,542.86 102.89
Feb 6,080.98 119.83 5,961.15 926.52 17.12 4,978.13 39.38
Mar 6,729.07 121.71 6,607.36 928.73 16.63 5,622.04 39.96
Apr 6,826.53 123.94 6,702.59 968.95 2.73 5,685.52 45.39
May 6,026.70 124.39 5,902.31 1,001.21 5.37 4,868.29 27.44
Jun 5,872.64 122.22 5,750.42 971.53 12.26 4,710.26 56.37
Jul 5,643.04 121.10 5,521.94 964.49 33.85 4,477.82 45.78
Aug 5,243.20 122.57 5,120.63 979.99 2.61 4,100.54 37.49
Sep 5,061.91 123.51 4,938.40 927.52 0.08 3,953.17 57.63
Oct 5,386.52 120.81 5,265.71 990.33 23.75 4,191.82 59.81
Nov 5,473.24 120.50 5,352.74 1,028.92 1.84 4,235.93 86.05
Dec 5,922.03 120.56 5,801.47 1,244.79 10.13 4,489.12 57.43
1994 Jan 5,850.52 120.22 5,730.30 1,159.25 19.87 4,499.95 51.23
Feb 6,003.35 121.85 5,881.50 1,217.35 0.97 4,612.75 50.43
Mar 6,718.97 122.17 6,596.80 1,084.67 1.83 5,442.82 67.48
Apr 7,277.80 123.77 7,154.03 1,247.04 18.93 5,798.83 89.23
May 7,103.76 123.42 6,980.34 1,178.97 4.04 5,705.69 91.64
Jun 7,633.82 126.12 7,507.70 1,106.68 8.16 6,304.70 88.16
Jul 7,880.33 125.71 7,754.62 1,085.77 3.95 6,589.98 74.92
Aug7,755.34 126.10 7,629.24 1,097.20 14.58 6,441.91 75.55
Sep 7,700.33 127.81 7,572.52 1,109.77 5.28 6,361.84 95.63
Oct 7,337.31 129.93 7,207.38 1,101.58 93.48 5,922.81 89.51
Nov 7,134.90 127.19 7,007.71 1,099.14 5.76 5,783.33 119.48
Dec 7,121.78 127.16 6,994.62 1,104.27 24.13 5,711.33 154.89
1995 Jan 7,153.87 128.40 7,025.47 1,106.06 20.25 5,765.77 133.39
Feb 6,804.54 130.29 6,674.25 1,116.94 3.14 5,451.68 102.49
Mar 6,721.58 135.59 6,585.99 1,153.22 52.37 5,297.08 83.32
Apr 6,942.23 137.58 6,804.65 1,171.29 53.14 5,472.11 108.11
May 7,111.50 137.24 6,974.26 1,179.75 68.73 5,606.97 118.81
Jun 7,488.18 136.42 7,351.76 1,312.32 25.51 5,930.53 83.40
Jul 8,326.03 135.43 8,190.60 1,311.00 25.32 6,784.37 69.91
Aug 8,266.76 129.24 8,137.52 1,324.38 19.19 6,726.29 67.66
1/ Based ontherevised balance ofpayments accounting methodology consistent withthetreatment ofIMFaccounts inthemonetary
surveypublishedintheIMF'sInternationalFinancialStatistics,BSP'stotalforeignassetsshallbecomposedofBSPGrossInternational
Reserves (BSP-GIR) andReserve Position intheFund (RPF).
Source: Treasury Department, Bangko Sentral ngPilipinasWT/BOP/7
Page29
Table 15-Outstanding foreign exchange liabilities -asofdates indicated
(Inmillion US$)
Item 31December 1993 31December 1994 31March 1995
Short-
termMLT Total Short-
termMLT Total Short-
termMLT Total
Commercial Banks
andCentral Bank1591 812 2403 2431 1115 3646 2344 1017 3361
1.Commercial Banks 383 732 1115 1675 1016 2691 1339 913 2252
Government 277 317 694 668 623 1191 455 616 1071
Private 106 415 521 1106 393 1499 884 297 1181
Foreign Banks 48 374 422 542 353 895 349 255 604
Domestic Banks 58 41 99 564 40 604 535 42 577
2.Central Bank 1208 80 1288 756 99 855 1005 104 1109
Public andPrivate 2347 28435 30782 3285 30867 34152 3268 32413 35681
1.Public 389 26194 26583 91 27102 27193 94 28197 28291
2.Private 1958 2241 4199 3194 3765 6959 3174 4216 7390
RedClause Advances 1097 0 1097 0 0 0 0 0 0
1.Public 0 0 0 0 0 0 0 0 0
2.Private 1097 0 1097 0 0 0 0 0 0
Total 5035 29247 34282 5716 31982 37698 5612 33430 39042WT/BOP/7
Page30
Table 16-Exchange rateofthePeso against theUS$*/ asofdates indicated
Period
Average1990 1991 1992 1993 1994 1995
Jan 22.4644 28.0000 26.5446 25.2800 27.7245 24.6223
Feb 22.6244 28.0000 26.1580 25.3116 27.6463 25.0282
Mar 22.7594 28.0000 25.8102 25.3656 27.5872 25.8590
Apr 22.7609 27.9261 25.6672 26.0780 27.5298 26.0077
May 22.9018 27.8186 26.1496 27.0064 27.0530 25.8493
Jun 23.1026 27.7955 26.1205 27.2063 26.9756 25.6742
Jul 23.5632 27.6210 25.2616 27.5688 26.4608 25.5140
Aug 24.4470 27.1995 24.6691 27.9489 26.3132 25.7109
Sep 25.3519 26.9834 24.7260 28.2337 25.9113
Oct 25.7500 26.9946 24.7849 29.1600 25.3945
Nov 28.0000 26.7366 24.9361 28.4849 24.2648
Dec 28.0000 26.6683 25.3221 27.7939 24.1450
End-of-period 1990 1991 1992 1993 1994 1995
Jan 22.5430 28.0000 26.5270 25.3480 27.6760 24.5730
Feb 22.7610 28.0000 26.0450 25.2800 27.7010 25.7320
Mar 22.7500 28.0000 25.3830 25.5130 27.5650 25.9870
Apr 22.8050 27.8420 25.8040 26.3850 27.2770 26.0210
May 22.9770 27.8060 26.2500 27.0940 26.8740 25.7970
Jun 23.2700 27.7500 25.5840 27.2720 26.9100 25.5750
Jul 23.8600 27.7500 24.9100 27.6950 26.2290 25.5850
Aug 25.0000 27.0000 23.2940 28.0430 26.4840 25.9060
Sep 25.7500 27.0000 25.1200 29.8130 26.0000
Oct 25.7500 27.0000 24.6360 28.8310 24.9280
Nov 28.0000 26.7000 25.4920 27.9580 23.8790
Dec 28.0000 26.6500 25.0960 27.6990 24.4180
*/ PerBAP reference rate. Starting August 4,1992, thereference raterefers tothewieghted average rateunder thePhilippine
Dealing System (PDS).
Source: Reference exchange ratebulletin, Treasury Department, BSP.