of the current account and overall external payments position. we also expect bop deficits to the mitigated by robust overseas filipino remittances, bpo revenues, tourism receipts, and fdi flows. recent weakness of the peso is also being spotlighted. we assure that the peso ’ s recent modest and controlled depreciation is consistent with the economy ’ s structural shift from being consumption - led to being more investment - led. this is driven by strong imports demand, residents ’ increased direct and portfolio investments abroad for expansion and risk diversification ; as well as public and private sector debt prepayments to manage foreign exchange risks. there is also outflow of hot money. we believe these developments are fundamentally healthy and help improve price competitiveness. second : capital markets capital market development also gives more reason to invest in the philippines. the bsp is working hand - in - hand with the department of finance ( dof ), the bureau of the treasury ( btr ), and the securities and exchange commission ( sec ) on a local currency debt market development roadmap, where reforms to deepen the market will be undertaken over an 18month time frame. the reform agenda will officially unfold with the launch of the government securities repo program later this very afternoon ( nov 27 )! indeed exciting and transformative times! the roadmap includes initiatives to 1 ) increase the volume of treasury bills, 2 ) provide stable, predictable and transparent issuance of government securities, 3 ) develop a systematic set of obligations, rights and incentives for market - makers, 4 ) establish a reliable yield curve, 5 ) introduce a repo program, and 6 ) strengthen regulatory oversight over the repo and fixed income market. these reforms in the government securities market will translate into increased market efficiency, lower borrowing cost, more dynamic and increased participation. as the domestic debt market develops rapidly, there will be more alternative sources of funding for economic activities besides the banking sector. risks will also be better managed. 2 / 4 bis central bankers'speeches third : infrastructure building we are in a period of build, build, build! this will be driven by massive key infrastructure investments. these will enhance competitiveness, support the economy ’ s rising growth trajectory, and spread development across the country ’ s regions. under the national government ’ s program, spending for big - ticket infrastructure projects is set between $ 160 billion and $ 170 billion in the next five ( 5 ) years. with this,

amando m tetangco, jr : banking sector developments in the philippines speech by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the ilf moa signing ceremony, manila, 25 march 2008. * * * members of the monetary board, undersecretary roberto tan, bap president ramon sy, mr. paul favila, fellow bankers, special guests, good morning. i am glad we now have this memorandum of agreement for the enhanced intraday liquidity facility. this moa will help the philippine banking sector adapt and respond better and faster to increasingly dynamic and challenging developments in the financial markets. congratulations are therefore in order to all those involved in the process that has led to this moa signing today. let us give everyone a well - deserved round of applause. indeed, operational adjustments in the ilf provide participants greater flexibility in the use of their securities. for instance, instead of earmarking the securities for ilf use for the whole week, participants can now make daily changes in their securities pool. in addition, availments will be made only when the need arises. furthermore, availment costs have been reduced to encourage more participation to the ilf. ladies and gentlemen. these are challenging times and now, more than ever, we need to close ranks to address the issues that concern the banking sector in a coordinated and comprehensive manner. on our side at the bangko sentral, we assure you that our lines of communication are kept open at all times for discussions and consultations. i expect the same from your end, particularly when it concerns programs that will benefit the financial system in particular and our economy in general. i will be the first to say that we have done a lot to strengthen our banking sector. this has been validated and repeatedly acknowledged here and overseas. however, we should continue our reform agenda to keep in step with global developments. let us choose innovation, over stagnation. united, we can make further improvements in our banking sector as well as our payment and settlements system to make it stronger, more efficient, and consistently aligned with worldclass standards. mabuhay ang philippine banking sector! maraming salamat sa inyong lahat.