By: Elena Grace Flores
[VIDEO]: Atty. Roque on the country’s credit rating
Credit versus Loans
Atty. Harry Roque hails the economic team of President Ferdinand R. Marcos, Jr. He said that the Philippines retains its high credit rating. This shows that the loans incurred did not surpass the line that can make payments unbearable. In other words, they are still very much manageable.
Foreign debts must have the approval of the Central Bank. This is to make sure that the country won’t borrow more than the currency reserves. The inflation rate will surge higher if the debts are harder to pay. Besides exports and OFW remittances contribute to the dollar reserves.
Increase of Money Supply
Printing more money is not the answer to a nation’s financial hurdles. The value of the currency will lessen should more notes are printed contrary to the monetary reserves. Therefore, Atty Roque urges his fellow Filipinos to get into entrepreneurial ventures.