Misplaced optimism of BBM’s finance secretary

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MSOpinion Misplaced optimism of BBM’s finance secretary “BBM’s appearance was most important and relevant, and, like his father, he made sure his presence would have an impact on the audience.”

“BBM’s appearance was most important and relevant, and, like his father, he made sure his presence would have an impact on the audience.”

The desire of the President to make use of the country’s sovereign wealth fund, as usual, opened the door to new opportunities, all hoping to bring capital and wealth by squeezing additional interest rate to an already tight market economy, this time risking the nations’ hard-earned savings called Maharlika or sovereign wealth fund.

Marcos wanted to make sure his speech will not end up as run in the mill but will stand out to be remembered by history. This is an attempt to pre-empt Constitutional provision much that the pronouncement already precludes us from rejecting such agreement although it is the Constitution that will have a final say whether to allow an expansion of those US military bases in the country.

In the meantime, other countries have proceeded to carry out their joint exploration with China while the Philippine project remains in the drawing board, to our detriment.It seems that Japan wanted to have a slice of the 36-kilometer subway construction project.The project is expected to cost ₱355.6 billion .This explains why up to now, the company that will operate the subway has not given an estimated cost per kilometer to be charged to the commuters.

Every prospective investor always looks forward to an increased dividend in their investment, and every investor would always seek to increase their participation which is necessary to finance gargantuan projects. Other sources are being tapped to augment the capital like seeking contribution of P50 billion from the Land Bank of the Philippines and P25 billion from the Development Bank of the Philippines.

Of course, the temptation is to raise capital for the ambitious projects of the President which otherwise will have difficulty in securing funds and to increase interest rate to foreign investors, reason why international investors and behemoth bankers flocked to Davos to hear what they can pick up from what the President was going to say which for them meant extra income.

 

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