to vigilantly monitor domestic and global developments to ensure that the bsp is able to sustain the “ trend ” of achieving its inflation targets. the bsp stands ready to deploy appropriate measures as needed to ensure an inflation environment conducive to a sustainable growth of the philippine economy. future policy actions of the bsp will continue to be guided by the following principles : 1 ) primacy on achieving its inflation objective. 3 / 4 bis central bankers'speeches 2 ) pre - emptively action if the inflation target is considered to be at risk. and 3 ) policy flexibility using all available tools in our enhanced tool kit, as deemed appropriate to address any threats to our inflation objective. let me end my presentation with these key notes. rest assured that the bsp is strongly committed to take all necessary policy actions to safeguard the government ’ s inflation targets and deliver on its primary mandate of price stability to support the country ’ s growth trajectory. maintaining price and financial stability that will minimize systemic risks, as well as provide resilience to shocks to the economy will help foster an enabling macro - environment that is conducive to accelerating economic growth and help expand its productive capacity. ultimately, the bsp ’ s conduct of its monetary policy will always be anchored on its price stability mandate in support of our collective goal of a philippine economy that is continuously expanding and thriving, for the benefit of all filipinos. thank you. 4 / 4 bis central bankers'speeches

borrowers could be required to pay an exit fee when the refinancing loan is extinguished. as another example, borrowers could be required to share with the government or with the holder of the borrower's existing mortgage either the equity created through a write - down or the future appreciation in the home price, or both, over some specified time period. in other words, the government or investor would have what is known as a " soft - second. " in addition, programs that provide for the voluntary participation of lenders and servicers should provide a natural brake on moral hazard, as lenders and servicers would remain free to pursue other options available to them in situations where they believe the borrower has the ability to repay his or her existing mortgage. 2. mitigating adverse selection a robust defense against adverse selection – the incentive of current servicers or lenders to send only their worst credits to the government - insured mortgage program – is necessary to protect the interests of the taxpayer. mechanisms that would discourage adverse selection include : ( i ) a loan seasoning requirement ( for example, a period during which the new loan could be sent back to the original servicer / lender if it redefaults ) and ( ii ) a fee structure that imposes costs on the servicer / lender if the new government - insured loan goes bad within a specified period or pays a bonus if the loan continues to perform over the whole of that period. 3. turning the fha into a world - class mortgage insurer with modernization and expansion, the fha could play an important role in relieving stress in the mortgage and housing markets as well as in restarting securitization markets. securitization markets are needed to help relieve capital stresses on banks and to provide more affordable mortgages to borrowers. to this end, more consideration needs to be given to how the fha can scale up quickly and improve its processes and underwriting systems so that they are comparable in quality with those currently being used by fannie mae and freddie mac. in addition, providing the fha with broad authority to offer innovative products that meet market needs and to outsource loan underwriting and other program elements to private - sector providers could allow the fha to insure more mortgage borrowers and to do so more quickly. the fha needs to be better able to compete in today's marketplace and it needs access to the best risk - management tools available