Balance of Payments Posts $267-M Deficit in 7 Months
Sionil, Fil C., Manila Bulletin
The country's balance of payments (BOP) position for the first seven months of the year yielded a deficit of $267 million.
According to Bangko Sentral ng Pilipinas (BSP) Governor Rafael B. Buenaventura, the BOP position as of end July was a 360 degrees turnaround from a hefty surplus posted in 1999 at $2.770 billion.
"This was due largely to net withdrawal of portfolio investment and other investments following negative investors' sentiment in the region and investors' concerns over domestic developments," Buenaventura explained.
But it was noted that the BOP deficit for the first seven months of the year was smaller by $225 million relative to the program deficit of $492 million.
The reversal of the BOP position, Buenaventura explained, was largely due to the shortfall in capital and financial account.
Capital and financial account deficit widened by 211.8 percent to $2.207 billion compared to a surplus of $1.974 billion in the comparable period the year past.
The pullout of "hot money," otherwise known as portfolio investments, normally lodged in listed securities at the local bourse was heavily felt as of end July due to the protracted Mindanao conflict, which had gained international prominence. …