Friday, September 20, 2024

Philippines Top Performance In Debt Transparency Report Boosts Public Trust

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Philippines Top Performance In Debt Transparency Report Boosts Public Trust

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The Philippines topping the global ranking on investor relations and debt transparency is a testament to the proactive efforts of the Department of Finance (DOF) in boosting public trust and engagement, Secretary Ralph Recto said.

“It is very encouraging to see that the Philippines is setting a global benchmark in investor relations and debt transparency,” Recto said in a media release on Sunday.

The Philippines topped the debt transparency ranking, according to the Institute of International Finance (IIF) 2024 Investor Relations and Debt Transparency Report.

Out of 50 countries surveyed by the IIF, the Philippines scored the highest with 12.5 out of 13.

The debt transparency score assesses sovereign borrowers’ data and policy dissemination practices.

It takes into account adherence to enhanced transparency practices; user-friendliness of macroeconomic and environmental, social, and governance (ESG) data formats; and availability of ESG data, among others.

The Philippines also ranked first in the survey on investor relations with a near-perfect score of 48.8 out of 50. It evaluates the overall investor relations practices of countries across 23 criteria.

Recto said transparency is most important, especially regarding government debt, to clearly show the public where their taxes and borrowings go.

“This transparency reflects the Marcos, Jr. administration’s commitment to managing the country’s finances prudently and sustainably to ensure a future of fiscal stability for Filipinos,” Recto said.

“Through constant dialogues, we equip our creditors and investors with the knowledge and insights needed to make informed assessments of our country’s performance,” he added.

The Philippines’ debt transparency initiatives are being led by the Bureau of the Treasury (BTr), which releases to the public regular comprehensive reports on the central government’s fiscal outturns and debt portfolio.

These include the National Government Cash Operations Report, which outlines the actual monthly and annual revenue collections, expenditures, and financing of the national government; and the National Government Debt report monthly, with details of the outstanding obligations of the government.

The government also releases an annual Fiscal Risk Statement that outlines current trends concerning macroeconomic and fiscal performance, public debt, monetary policy, as well as potential risk exposure and mitigation measures in place.

The BTr likewise releases the auction calendar to provide market participants with insight about the intended tenor and volume of treasury bills and bond issuances.

On strengthening investor relations, the DOF engages in multiple domestic and international Philippine Economic Briefings (PEBs) to serve as an avenue for the government to provide investors with updates on the country’s economic and financial performance, as well as developments on key policies and programs.

The PEBs provide investors with the opportunity to share their insights and express their concerns with the government for better policymaking.

Since Recto took office, the Philippines already held PEBs in Manila, the United States and Japan. (PNA)