The privatization of Philippine National Bank is a crucial moment in Estrada's presidency. The Manila stockmarket is trading at 18-month lows.
Philippine bonds are the worst-performing in the region.
The country's central bank raised overnight interest rates at the end of April to support a wobbling peso. The key to this conundrum is President Joseph Estrada. A populist who loves the people and by all accounts loves his friends, too, Estrada has been dogged by allegations of cronyism and criticism of the slow pace of economic reform. Given the benefit of the doubt by business people inside and outside the Philippines when he took office in 1998, the president has squandered much of that goodwill. Despite being beset by serious problems ranging from insurgency to hostage taking, Estrada faces perhaps his most critical test yet this month.