BTr expects Q1 reveal on JP Morgan bond index

The decision on the Philippines’ potential inclusion in one of the world’s most influential emerging-market bond indices is expected to be announced within the first quarter of the year, according to the Bureau of the Treasury.

Should the decision favor the country, it could spur additional foreign investments into the Philippines’ debt market. Managed by JP Morgan, the Government Bond Index–Emerging Markets is followed closely by global fund managers and serves as a benchmark for local-currency sovereign debt

The bank placed the Philippines’ peso-denominated government securities on a “positive watch” last Sept. 12. This is the final stage before possible inclusion.

Speaking to reporters, National Treasurer Sharon Almanza said the government has made significant progress in meeting the index’s requirements.

”[We haven’t complied with] all the requirements, but we’ve made strides. There are a lot of improvements,” Almanza said.

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”For liquidity, we already have the tax treaty for implementation, at least for those with tax treaty agreement. And on the BSP (Bangko Sentral ng Pilipinas) side, there’s the IRS (interest rate swap), so it also helped with liquidity and repo (repurchase agreement),” she added.

JP Morgan has cited the improvements that Almanza mentioned as among the string of “proactive market reforms” by the BSP and the Bankers Association of the Philippines that supported the country’s placement on positive watch.