of funding, as well as provide alternative financing opportunities for infrastructure projects. of course, the program is not a silver bullet. and if policymakers are not careful, it could also pose challenges in the economy. in the long - run, while infrastructure investments promise to support economic growth and employment, unforeseen large external demand and price pressures that affect the import requirements of infrastructure projects can, in turn, limit the benefits of improving macroeconomic conditions. other challenges facing policymakers include issues on skilled labor shortage that may cause delay in the infrastructure projects ; budget drawdown issues ; and possible inequity in resource allocation at the local level. 1 / 2 bis central bankers'speeches in this regard, greater policy dialogue and close coordination of relevant government agencies in terms of fiscal planning and budget execution, as well as program planning is a policy imperative. needless to say that the road ahead requires a lot of work. let us start today by making this event a fruitful one through the productive and meaningful exchange of ideas on the topic. in particular, our discussions shall revolve around the following : 1. the developments / issues encountered in the bbb program. 2. funding requirements for the continued and sustainable implementation of the bbb program. 3. impact of the bbb program in the short and medium - term on macroeconomic conditions, namely, inflation, current account, exchange rate, and growth output ; and 4. the possible disadvantageous effects, if any, of infrastructure program on jobs, equity, and the “ crowding out ” of credit and investments. i look forward to have a meaningful exchange of views and ideas on these issues. let me also take this opportunity to thank our speakers in advance for your time and contribution in this exercise, which is part of our effect to look at a broad range of economic and non - economic issues that provide useful insights for policymaking. rest assured, your insights will serve as useful inputs to the bsp ’ s conduct of monetary policy, as we all strive to build the “ hardware ” that would propel our country to sustainable and inclusive growth. thank you and mabuhay tayong lahat! 2 / 2 bis central bankers'speeches

andreas dombret : new regulation on trading with otc derivatives introductory statement by dr andreas dombret, member of the executive board of the deutsche bundesbank, to the panel discussion “ financial markets – finding a regulatory normal ”, euro finance week conference, frankfurt am main, 20 november 2012. * 1. * * introduction dear ladies and gentleman the regulation of the otc derivatives markets is more or less on track, but the ambitious timeline of the g 20 will not be kept. the g 20 goal to trade standardised derivatives on exchanges or electronic trading platforms and to clear all standardised otc derivatives through a central counterparty ( ccp ) by the end of 2012 will not be reached. whereas in europe the clearing obligation established by the european market infrastructure regulation ( emir ) is mostly in force. the trading obligation under the currently discussed markets in financial instruments regulation ( mifir ) will, together with the markets in financial instruments directive ( mifid ), not enter into force before 2015. it is remarkable that the united states has made more progress with implementing the trading and clearing obligation under dodd frank. however, this first mover advantage does not always produce the best solution for the global derivatives market. 2. multilateral approaches are more promising than bilateral solutions the forthcoming challenge will be the global application of the new regulatory framework. while the united states of america seeks a bilateral approach to assess the equivalence of third country regimes, the european stance is to negotiate on a multilateral basis to grant equivalence of different regulatory regimes. i am convinced that this approach is superior since it creates more legal certainty compared with a case by case equivalence assessment. 3. regulation will be without effect if there is no adequate implementation and supervision the implementation, application and introduction of the numerous rules will demand a huge effort : first of all, from the supervisors, as they have to supervise and oversee central infrastructures, as well as from the financial and non - financial industry. furthermore, ccps and market participants, both are affected. ccps have to adjust their risk management to cope with more clearing members and with accelerating volumes of derivatives to be cleared centrally. ccp clearing is required of market participants ; otherwise they have to accept higher capital and collateralisation requirements. besides, the standardisation of otc derivatives should make good progress, so that the clearing and trading obligation becomes operational as soon as possible. we are aware of the practical difficulties and do not underestimate the challenges that have to be met in