amando m tetangco, jr : setting a milestone with the quezon city credit surety fund speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( the central bank of the philippines ), at the quezon city credit surety fund lunch, manila, 18 august 2014. * * * good morning everyone! on behalf of the bangko sentral ng pilipinas and our partner institutions – the dbp, land bank and iglf – we thank quezon city under the distinguished leadership of mayor herbert bautista, vice mayor ma. josefina belmonte - alimurung, and the members of the sangguniang panlungsod for launching its own credit surety fund or csf. the quezon city csf is the first at the national capital region. this is therefore a significant milestone in our program to promote csfs across the country. this tells us that the local government in quezon city continues to find ways to support the further growth and development of local micro, small and medium enterprises – or what we call msmes. we know that through its sikap buhay entrepreneurship and cooperative office, the city government is pro - active in promoting access to credit, particularly for microfinance. this time, by setting up its own csf, quezon city is scaling up to help more members of cooperatives gain access to bank credit. with the csf, coop members with good credit standing can avail of bank credit even if they still lack collateral and sufficient credit history. on the part of the banks, csf is a welcome program, as it provides opportunities to comply with the mandatory 8pct credit allocation required under the law – ra 6977, as amended, also known as the act to promote, develop and assist smes – under a more manageable risk framework. as a whole therefore, the csf is a win - win program for coop members, banks and our national goal to have a more inclusive financial system that will support inclusive growth. indeed, we have seen the initial benefits from our partnerships under the csf. as of may this year, roughly p1. 1 billion in loans have been granted by 30 csfs to nearly 10, 000 msmes. with quezon city, we now have 31 csfs : 14 in luzon, 7 in the visayas and 10 in mindanao. we look forward to seeing the benefits of csf in quezon city, our country ’ s biggest city

bank of japan ’ s october report of recent economic and financial developments1 bank of japan, communication, 16 october 2000. * * * the bank ’ s view2 japan ’ s economy is recovering gradually, with corporate profits and business fixed investment continuing to increase. with regard to exogenous demand, public investment is starting to decrease since the implementation of the supplementary budget for fiscal 1999 has peaked out. net exports ( real exports minus real imports ) continue to follow a moderate upward trend due to steady developments in overseas economies. as regards domestic private demand, business fixed investment is on an increasing trend. the recovery in private consumption continues to be weak as a whole through lack of notable improvements in employment and income conditions, although there are somewhat positive signs in some indicators. housing investment is mostly unchanged. reflecting such developments in final demand, industrial production is increasing. corporate profits and sentiment continue to improve, and the number of firms that take positive action, such as increasing the amount of fixed investment, is increasing, especially in high - growth sectors. income conditions of households still remain severe but regular and overtime payments as well as new job offers continue to increase in line with the recovery in corporate activities, and compensation of employees has stopped decreasing. as for the outlook, public investment is expected to decrease. while the expansion in overseas economies is likely to continue, the increase in exports is likely to slow down as restocking activity in asian economies has peaked out. meanwhile, imports are projected to continue increasing, particularly for those of information - related goods. therefore, real exports will level off for a while. in the corporate sector, firms still strongly feel that they have excess equipment and that they should reduce their debts to restore financial soundness. however, it is very likely that fixed investment in highgrowth sectors, including those related with information technology services, will increase as corporate profits continue to recover. moreover, an improvement in corporate profits will increase household income and this in turn is expected to boost private consumption. however, the pace of recovery in household income will be modest for the time being, since firms ’ perceptions of excess employment still persist, and thus significant changes have not been observed in their efforts to reduce personnel expenses. overall, the economy is likely to recover gradually led mainly by business fixed investment, while the developments in crude oil prices as well as foreign and domestic capital markets, along with their effects on the economy, need careful monitoring. in addition, the favorable financial environment created partly by the bank ’ s sustaining