Philippines battles to keep credit lines open

Criticisms over the Philippines'' rediscount facility are groundless, some analysts say.

Criticism ofáthe central bankÆs recent action to free up funds for the nationÆs faltering investment houses is unfair, some analysts say.

The Philippines announced on Monday that investment houses could liquidate up to 60% or Ps32.2 billion $740 million of their existing holdings of commercial papers. Banks are expected to buy the papers from the investment houses and discount them, giving the houses much-needed cash. The banks, in turn, are expected to pass the notesáon to the central bank.

Local newspapers take issue with the ruling that only triple-A rated papers, or 60% of the papers in the market, would be bought from investment houses. The newspapers suggest that asáthe Philippines...

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