By Butch Fernandez
Malacañang was upbeat over the Philippines’s latest credit-rating upgrade by Japan, from “BBB” to “BBB+,” saying this would result in much lower interest rates that would benefit the government, business sector, as well as Filipinos taking out bank loans for housing or setting up new enterprises.
Acknowledging the recent upgrade given by the Japan Credit Rating Agency (JCRA), Communications Secretary Herminio B. Coloma Jr. noted that this was the 22nd time the Philippines’s credit score was upgraded since President Aquino took office in 2010.
At a news briefing on Tuesday, Coloma explained that the “investment-grade rating” is expected to bring down prevailing interest rates on the government’s borrowing and lending activities and also lower bank lending rates to local borrowers.
“Dahil sa investment-grade rating higit na mababa ang interest rate sa mga hinihiram na pondo at pautang ng bansa,” Coloma noted.
He added: “Makikinabang din dito ang mga mamamayan bunga ng pagbaba ng interest rate sa kanilang paghiram ng pondo sa bangko para sa pabahay, pagtatayo ng negosyo, pakotse at iba pang personal na pangangailangan.”
The news on the credit-rating upgrade by Japan reached the Palace on the heels of a recent Social Weather Stations (SWS) survey also affirming the Aquino administration’s improved net satisfaction rating, among Filipinos surveyed by SWS.
“Ikinagagalak ng pamahalaan ang tumaas na antas na pagtanggap or net satisfaction sa pamamalakad ng Pangulo, Gabinete at buong gobyerno batay sa pinakahuling public satisfaction with the national administration survey ng Social Weather Stations,” Coloma said.
The Palace official noted that the high satisfaction rating it obtained in the SWS survey will all the more prod the Aquino administration to improve the delivery of government programs and other public services to the people.
“Kapansin-pansin ang pagtaas ng pagturing ng mga mamamayan sa paghahatid ng serbisyo publiko sakop ang kalidad ng edukasyon at pagkalinga sa maralita,” Coloma said. “Kaya nga’t higit pang masiglang isinusulong ng pamahalaan ang mga programang K to 12 at Pantawid Pamilyang Pilipino Program, o 4Ps, at mga kahalintulad pang mga programang nakatuon sa kapakanan ng sambayanan.”
He noted that the same survey also indicated that the majority of Filipinos support the Aquino administration’s foreign policy, particularly its handling of the West Philippine Sea row, where the Philippine government remained firm in advocating a “rules-based conflict resolution” to settle the territorial rift with China.
“Kasabay nito, nagpahayag din ang ating mga boss ng pagsang-ayon sa mga isinasagawa ng pamahalaan sa larangan ng ugnayang panlabas, o foreign relations, na kung saan ang pinakatampok na usapin sa kasalukuyan ay hinggil sa West Philippine Sea,” Coloma said. “Ang matibay na paninindigan ng Pilipinas sa pagsulong ng rules-based conflict resolution ay umani na ng suporta mula sa maraming bansang kasapi ng United Nations, Asean at Apec.”
In a separate statement, Palace Spokesman Edwin Lacierda said that the Palace was “pleased to announce that the Philippines has received a credit-rating upgrade from the JCRA: from ‘BBB-’ to ‘BBB+ stable.’”
He noted that under the Aquino administration, “we have received two previous credit-rating upgrades from JCRA, in April 2011 and May 2013,” adding that “this is the 22nd positive rating action our country has enjoyed under this administration.”
Lacierda reported that the JCRA had cited the Aquino administration’s commitment to prudent fiscal management policy as having improved the country’s position.
“The figures speak for themselves: our central government debt-to-GDP [gross domestic product] ratio fell from 49.2 percent in 2013 to 45.4 percent at the end of 2014. Driven by strong domestic demand, the Philippine economy is projected to sustain a positive trajectory in terms of economic growth.”
According to Lacierda, “the aim of building a truly progressive and inclusive nation has been at the center of the Aquino administration’s vision since 2010,” adding that “recent advances in health, education, job creation and infrastructure—as well as positive news such as this—serve to affirm the strength of this commitment.”
“As the President has repeatedly said, all these investments are meant to benefit the Filipino people, our nation’s greatest resource. Along with characteristic optimism and diligence, it is the public’s continuing confidence in the government, which has made our country’s economic resurgence possible. Moving forward, the Aquino administration aims to pursue even greater heights for our country and bring about increased opportunities for all,” Lacierda added.