Carlos G. Dominguez
Secretary of Finance
Release of 2nd Semester Financial Stability Report
18 November 2020
The Second Semester Financial Stability Report we are presenting today is a picture of strength in the face of adversity. While it may not be as glowing as last year’s report, it shows how years of work in fortifying our financial sector have prepared us well for this difficult time. More importantly, it demonstrates that we are effectively mitigating the adverse effects of the pandemic on our domestic economy.
This report highlights the importance of crafting responsive fiscal and monetary policies to support our recovery and help Filipinos return to their means of livelihood.
Fiscal policy is more than just disbursing public funds and financing deficits. At the start of this administration, we understood that good fiscal policy could meaningfully improve the lives of our people and strengthen businesses. We spend what we must, and we spend on the right things. Our fiscal policy has centered on supporting President Duterte’s ambitious Zero-to-Ten-Point Socioeconomic Agenda towards inclusive growth.
Over the past four years, we focused on building our fiscal stamina. This proved crucial when the pandemic struck. With our credit ratings at historic high, we quickly accessed emergency loans from our development partners and the commercial markets at very low rates, tight spreads, and longer repayment periods. With our enduring financial strength, we will meet these obligations. We continue to work with the rest of the government to ensure that these funds will be spent on strengthening the economy.
At the Financial Stability Coordination Council, we are focused on assessing the interplay between the financial market and the real economy. Thus, I would like to take this opportunity to thank both Houses of Congress for passing the FIST bill or the Financial Institutions Strategic Transfer. We hope the bicameral conference will finalize the bill within the year.
As the global pandemic continues, we must implement timely and effective monetary and fiscal policies. These policies are crucial to the management of evolving systemic risks during this period of general uncertainty. They are also the very tools we are using to build a new and more resilient economy.
Every crisis presents both challenges and opportunities. We will continue to be vigilant against the risks posed by the pandemic while taking advantage of opportunities that will help restore our country’s growth trajectory.
Thank you and good day.
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