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

looking and information - intensive approach. thus, it is imperative that the information and statistics we receive are comprehensive, timely, and accurate. we cannot overemphasize the importance of keeping prices stable ; this allows households and businesses to plan over a longer horizon and make informed decisions on consumption, investment, savings, and production. in case some of you are wondering how we have fared in terms of stabilizing prices. the answer is : with your help, we have done quite well. headline inflation has been on a downtrend, dropping from 3. 3 percent in may to 1. 5 percent year - on - year in june, the lowest in more than 22 years. our external accounts have also remained healthy, with a balance of payments surplus and a record - high gross international reserves of us $ 39. 6 billion. these are positive results from our collaboration. palakpakan po natin ito! today, we will also recognize the best commercial banks that facilitate the inflow, and reporting, of remittances from overseas filipino. we all know that this is a service that is important not only to overseas filipinos and their families but also to our economy. on the average, remittances represent 10 - 11 % of our gdp. therefore, let us also congratulate our banks that provide efficient and secure handling of over one billion dollars in monthly remittances from our overseas filipinos. palakpakan din po natin sila! we will also give special recognition to institutions that have given their unqualified support and cooperation for the bsp's economic and financial education program. let us also give them a round of applause! once again, on behalf of the bangko sentral, i thank all of our respondents and stakeholders who have been our faithful partners through these years. with your steadfast support, the bangko sentral will continue to craft and implement effective and responsive monetary and banking policies that will empower us and our partners to face up to the challenges that come our way. finally, let us keep in mind what the physicist albert einstein once said about information. he said … and i quote : " information is a source of learning. but unless it is organized, processed, and available to the right people in a format for decision making, it is a burden, not a benefit ". end of quote. ladies and gentlemen. as partners of the bangko sentral ng pilipinas who have