environment appears to favour the former than the latter. certainly, we have seen a number of debt issues structured of late and i am told that a few more are in the realm of the possible. ladies and gentlemen, i have no doubt that the gs market can very well serve as the catalyst for further reforms. the goal is to transform the market from a basic fiscal tool to a broader venue that migrates savers into investors while raising capital for productive initiatives. instead of tapping foreign saving, entrepreneurs can very well raise funds locally without the complications of cross - currency cross - border risks. instead of crowding out private saving, the gs market can act as the necessary base from which corporate credit can be properly priced and sourced. instead of seeing its limitations, i see what the philippines can do in this market and hold high hopes for its eventual success. with that, ladies and gentlemen, i bid you all a pleasant afternoon.

regulator and the regulated. the recent passage of the pera law together with its attendant irr is a prime example of the type of financial awareness campaign that must be pursued. pera itself is encompassing given the wide variety of products that may be offered. this can therefore be the linchpin for a concerted campaign and eventually extended beyond pera. final thoughts ladies and gentlemen, i have covered quite a bit of ground here this afternoon. some may choose to see this as an indication that there is much that is impaired with the philippine bond market, particularly that of the government securities. i beg to differ since i have seen the strides that have been taken particularly in more recent times. thus, i choose to see the vast potential this market can offer to the philippines as a necessary vehicle to promote further economic development. it would be a grave mistake however if we see the market simply as government securities. while it is true that in the philippines the gs market in inherently linked to our fiscal situation, the broader development initiative cannot be held hostage by such limited concerns. fiscal consolidation is a continuing commitment and our collective efforts to address our fiscal position may soon come to fruition. between now and the point of a sustainable national budget, the bond market needs to develop so that it moves beyond a largely fiscalcentric tool to one that can provide opportunities for both business initiatives and the investing public. from the regulatory end, our commitment is to provide the enabling environment for the broad fixed income market to thrive. that will include the prudential framework that is needed for effective oversight and to protect the interests of the public. it will have to also include a stable macroeconomic environment where expectations on market prices and economic activity can be reasonably ascertained. this combination of a prudential framework and the ability to mitigate volatilities is certainly at the heart of a thriving fixed income market. i will submit to you this afternoon, ladies and gentlemen, that indeed we have such an enabling macroeconomic environment before us. the outlook remains that of manageable inflation expectations, “ within - target ” inflation rates for 2009 and 2010, continuing remittances from overseas filipinos, a surplus bop position, market - driven peso value and interest rates that are responsive to our market ’ s needs. already the current low interest rate environment provides an interesting market backdrop for this point. between a fixed coupon rate payable over the long - term and bank credit that is re - priced annually, the current