Monday, 08 August 2011 14:37
Malacanang made an assurance Saturday that the government will closely monitor the recent credit rating downgrade of the US by Standard & Poor’s (S&P) so that it could respond to whatever impact it might have on the country’s economy.
Deputy Presidential Spokesperson Abigail Valte said, in a radio interview on Saturday over state-run dzRB Radyo ng Bayan that it’s too early to tell the effects of the downgrade to the Philippines because it happened just the other night.
“So what we can say right now is sigurado po tayo na nagbabantay na iyong mga economic managers natin sa naging downgrade na ito sa US at mapag-uusapan po iyan in the next few days,” Valte said.
Aside from assessing and monitoring the effects of the US downgrade, Valte said the government will be taking the necessary steps to address the possible effects on the Philippines.
For the first time in history, Standard & Poor downgraded the US government’s credit rating Friday saying the recent plan worked out to raise the federal debt ceiling doesn’t sufficiently address what’s needed to be done to stabilize the nation’s longer-term finances.
At the same time, S&P also said the partisan stalemate in the US Congress that put the country on the brink of default did not bode well for efforts to reduce the nation’s skyrocketing debt.
With the downgrade, the US debt will now have a rating of AA-plus instead of the coveted AAA, dropping it into the same category as Japan, Taiwan, China, Slovenia and Spain.
Aside from a possible increase in the US borrowing costs as the government bonds become more risky, the downgrade is a major blow to the country’s reputation. (PNA)
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