Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla is looking to add disclosure requirements for Philippine conglomerates.
The central bank chief, whose term of office is set to expire July 2, said the BSP is keen on requiring major businesses to disclose their level of exposure to outstanding foreign debt to get a more accurate assessment of the impact of foreign exchange movements and international interest rate adjustments.
“I don’t think we are fully informed about the external exposure of our conglomerates,” Medalla told Bloomberg in an interview. “When we look, for instance, at other data it seems to us that their exposure may be larger than we think it is. It’s about understanding the economy and being vigilant.”
Medalla considers information on conglomerates’ foreign debt exposure crucial to policy making.
“Our worry is if the conglomerates get weaker regardless of whether their investments are here or abroad, it may have an effect on the Philippine economy given their large size,” he added.
Bloomberg data showed that bilyonaryo Ramon Ang’s San Miguel Corp. has the biggest foreign debt exposure, followed by property giants Ayala Corp. and the Sy-blings’ SM Investments Corp.