Business Mirror
Feb 6, 2006
BTr to craft new debt tool for OFWs
THE Bangko Sentral ng Pilipinas has endorsed the issuance of a new debt instrument envisioned to benefit millions of overseas Filipino workers (OFWs) and their families while helping deepen the domestic capital market as well.
Officials said the new instrument, details of which are still to be fleshed out by the national treasurer, will definitely not embody an earlier proposal by foreign bankers to securitize the huge remittances of OFWs.
In an interview, BSP chief Amando Tetangco Jr. said the new proposal has received a favorable reception from the national government although details of the transaction have yet to be hammered out.
"We have already endorsed the idea to the national government and the Bureau of Treasury is considering the proposal," Tetangco said on Friday.
According to him, it is up to the BTr, now headed by former Citibanker Omar Cruz, to transform the idea into a full-scale debt instrument that will particularly benefit OFWs, while also making available more investment opportunities for long-term investors in the country.
He stressed the debt instrument would not involve the securitization of OFW remittances that some foreign banks, would have Philippine authorities endorsed and adopted. J. Vallecera
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