PHILIPPINES SAYS DEBT PACT "BETTER THAN MEXICO'S'
Central bank governor Jose Fernandez said
the 10.3 billion dlr debt restructuring package he and Finance
Secretary Jaime Ongpin negotiated with the Philippines'
commercial creditors was better than Mexico's.
    "I think we got a better deal. It was really an enormous
drop, a reduction in rates and that to me is the critical
element," he told Reuters.
    He was reacting to comments by local economists who said
Manila's debt accord was no better than Mexico's, which had won
a 20-year repayment, including a seven-year grace last year at
13/16 points over London interbank offered rates (Libor).
    The Philippines clinched a repayment of 17 years, including
a grace period of 7-1/2 years on 10.3 billion dlrs of its total
debt of 27.8 billion.
    But Fernandez said what was more significant was that
Manila came down from 1-7/8 on the new money and 1-5/8 on the
restructured debt to 7/8 points. Mexico, on the other hand
dropped to 13/16 from 14/16.
    "They got a 1/16 reduction. We got almost a one percentage
point reduction," he said.
    Asked why some features of the debt agreement such as the
token prepayments of principal were not made public
immediately, he said "These are very long documents and in a
press statement you can only cover the key points. But these
will be made available to you."
    Ongpin confirmed on Tuesday that a Reuter report from New
York that Manila will pay its commercial creditors 111 mln dlrs
over 1987-1989 was accurate.
    He omitted the token prepayments in previous announcements
but said there was nothing secret about them.
 REUTER
