Eco team to give Cha-cha recommendations in 2 weeks

Posted at 08/02/12 9:39 AM

MANILA, Philippines - Finance Secretary Cesar Purisima said President Aquino has asked the Cabinet economic cluster to come up with their recommendation on Charter change in two weeks.

Asked what the sticky issues are, Purisima said there are concerns on certain economic provisions, including rules on foreign ownership. He said he is consulting with the economic team and the World Bank on these issues.

When asked what his position is on Charter change, he said he doesn't have any position on the issue.

Earlier, Aquino asked the National Economic and Development Authority (NEDA) and other stakeholders to study the proposal of leaders of Congress to amend the restrictions on foreign capital in the 1987 Constitution.

Aquino met with Senate President Juan Ponce Enrile and House Speaker Feliciano Belmonte to listen to the proposal to change the 60:40 restrictions on foreign capital in ordert to attract more foreign investments.

Enrile had said the President asked his economic managers, including NEDA, the agency in charge with macro-economic planning, to study whether amending this provision will benefit the country.

Some economic analysts believe removing the 60:40 rule on foreign ownership will bring in  more investments and create more employment.

Others, however, say there's no correlation between the restriction and foreign investments.   They say foreign investors will come despite these restrictions as long as they can make money.  - Report from Lois Calderon, ANC