Wednesday, July 1, 2015

Philippine economy could absorb shocks posed by Greek debt crisis



The country's economy is strong enough to withstand the effects of the Greek financial crisis, Communication Secretary Herminio Coloma, Jr. said on Tuesday.

"According to Finance Secretary Cesar Purisima, ‘The Philippines is in a much stronger position now to face the volatility that may result from Grexit,” Secretary Coloma said.

“Grexit” is the short term used for the possible exit of Greece from the European Union (EU).

“Our reserves are at historic highs; our external debt are long-dated and now down to 15 percent of the gross domestic product (GDP).

Our current account has been in a surplus for 13 straight years. Our banks are better capitalized and the economy is more diversified than ever," Secretary Coloma quoted Secretary Purisima as saying.




Greece, which might default from its debts, has announced that it would carry out capital controls to protect its banking sector. Greek banks were deprived of additional emergency financing by EU creditors and the International Monetary Fund (IMF).

Greece said it would restrict bank withdrawals in the coming days to prevent a collapse of cash-strapped Greek banks. (PCOO News Release)

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