by: Ronald Escanlar
Thursday, January 13, 2011 | Outsourcing News |
The Bangko Sentral ng Pilipinas (Central Bank of the Philippines) reports that multinational companies with Philippine operations have reinvested USD 259 million into the country during the first 10 months of 2010 - five times more than during the same period in 2009.
The central bank says the reinvestments propped up the rate of foreign direct investments (FDI) to USD 1.07 billion for that period. However, the institution reports that the FDI rate actually declined from 2009, when it totaled USD 1.68 billion.
In their report, the central bank says, “Notwithstanding the favorable growth prospects in the domestic economy, investor sentiment remained cautious amid concerns on the sustainability of recovery of advanced economies, particularly of the United States where the outlook continued to be fragile given the high government fiscal deficit and tepid employment conditions.”
Within the same period, subsidiaries and affiliates of multinational companies increased their loans from overseas headquarters for short- and medium-term local economic operations.
The central bank calls these activities as “intercompany loan availments from affiliates abroad.”
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