BAP's Fixed-Income Exchange; USAID to Provide Technical Assistance
The Bankers Association of the Philippines (BAP) has secured the support of the United States Agency for International Development (USAID) for the establishment of a Fixed Income Exchange, a crucial move towards the development of the country's capital market.
The USAID support will in the form of technical assistance under, the memorandum of understanding of which was signed yesterday between BAP and USAID.
Meanwhile, the BAP said it was asking the Philippine Stock Exchange to take a 20 perecent stake in its planned P500-million Fixed Income Exchange targeted to be launched this year, Vicente Castillo, chairman of the BAP's open committee said. He said the proposal has drawn positive reaction from potential corporate issuers. He did not identify the firms but other BAP officials said these include the Ayala Group, San Miguel Corp and Pilipinas Shell Petroleum Corp.
In a press briefing after the ceremony yesterday, USAID Mission Director Patricia Buckles said the technical assistance will be provided, at this crucial stage, when the Fixed Income Exchange is still being worked out.
It involves providing the expertise to make the Fixed Income Exchange foolproof as well as some financial support for the technical working group.
On the other hand, Cesar Crisol, Managing Director of Multinational Investment BanCorp. and chairperson of the fixed-income exchange steering committee, said USAID expertise would fasttrack the creation of the exchange.
So far since its conceptualization nearly a year ago, Crisol said there are only few issues left to be addressed, foremost of which is the license from the Securities and Exchange Commission (SEC) and the investors who will put in the equity. …