Signing of the Framework Agreement between the Philippine Government and JBIC under the Market Access Support Facility

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Ambassador of the Philippines to Japan Domingo L. Siazon, Jr. and Japan Bank for International Cooperation (JBIC) Executive Director Fumio Hoshi signed on 16 February 2010 the Framework Agreement implementing the MOU signed last June 2009 by Philippine Secretary of Finance Margarito B. Teves and JBIC President Hiroshi Watanabe for possible cooperation on the issuance by the Philippine government of Japanese Yen-denominated bonds (Samurai Bonds) up to the amount of US$ 1 billion for the calendar years 2009 to 2011.

Under the Market Access Support Facility (MASF) established by Japan in May 2009, JBIC will provide guarantees for the issuance of Samurai Bonds by developing Asian countries to allow them to regain access to international markets following the financial crisis of 2008. JBIC’s guarantees under the Framework Agreement aim to support the Philippine government’s funding efforts in the Japanese bond market, diversifying the government’s funding sources and thus contributing to the stable economic growth of the country.

At the signing ceremony held at the JBIC Office in Tokyo, Ambassador Siazon noted that the Framework Agreement comes at a very opportune time. He expressed optimism that with the support of JBIC, the Samurai Bonds flotation will be attractive to the Japanese financial community. He explained that the Philippines expects to use the proceeds of this bond flotation to support the general financing requirements of the National Government.

Ambassador Siazon emphasized that the MASF is a very important development instrument, particularly during the current period of economic difficulty. The Ambassador conveyed the Philippine government’s deep appreciation for the continuing support of the Japanese government, noting that this is one more example of Japan’s commitment to ASEAN and the East Asian community with ASEAN at its core.