*From: *"Peiris, Shanaka Jayanath" <SPEIRIS@imf.org> *Date: *Wed, 17 Jul 2013 07:28:51 +0000 *To: *'email@example.com'<firstname.lastname@example.org> *Subject: *Final There have been a number of media queries following an article published in a newspaper yesterday that covers the IMF’s view on conglomerate risks. I wish to clarify that this article covers one of the many risks identified in the “risk assessment matrix” of the 2013 IMF Article IV Consultation staff report discussed with the authorities in January 2013 and published in April 2013. It should be noted that one of the innovations in the wake of the global financial crisis and addressed in the IMF’s 2011 Triennial Surveillance Review has been the incorporation of risk assessment matrices (RAMs) in IMF Article IV reports. RAMs are now included in most country Article IV staff reports and lists events that could materially alter the baseline path (the scenario most likely to materialize in the view of IMF staff). The relative likelihood of risks listed is the staff’s subjective assessment of the risks surrounding the baseline at the time of discussions with the authorities. The RAM for the Philippines in the 2013 Article IV Consultation noted a number of global and domestic risks including the low likelihood of risk and potentially medium macro-financial impact of a highly leveraged conglomerate failure at the time of Article IV discussions held in January 2013. There was no identification of a particular company. Other risks to the Philippines listed include incomplete delivery of euro area policy commitments and fiscal policy shock in the United States; protracted period of slow European (or global) growth; capital inflow reversal affecting EMs, accompanied by a strong unwinding of asset price overvaluation; and domestic asset price bubble fuelled by abundant liquidity. Notwithstanding these risks the 2013 Article IV consultation staff report presents a favorable economic outlook based on the solid macroeconomic fundamentals of the Philippines. Please see the IMF.org website for the full report on the Philippines for more detail.**** ** ** ** ** IMF Resident Representative to the Philippines**** Room 407, 5-Storey Building **** Bangko Sentral ng Pilipinas**** Malate, Manila, Philippines**** Tel: (+63-2)708 7484**** Fax: (+63-2) 708 7483 **** ** ** -- Belle Maestro-Arceño Public Relations Office of the Secretary Department of Finance Mobile +63 908 894 4893 E.mail email@example.com Twitter @CiaoBellaBoo
IMF CLARIFICATION ON APRIL PHILIPPINE REPORT, CONGLOMERATE RISK
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