Finance Secretary Ralph G. Recto has secured the backing of the United States Department of the Treasury to strengthen the Philippines’ tax and customs administration system in order to boost the collection of much-needed revenues.
This commitment was conveyed by US Treasury senior officials led by Undersecretary Jay C. Shambaugh during a high-level meeting with Secretary Recto on October 24, 2024 in Washington, D.C.
The US Department of the Treasury noted that since 2015, it has provided technical assistance to the Bureau of the Treasury (BTr) to help increase the Philippines’ domestic debt market liquidity and resilience. This paved the way for an improved primary dealer system, new liability management instruments, and a modern financial market infrastructure for government securities.
Building on this success, both parties are exploring more potential partnerships to improve the country’s fiscal management.
This includes the possible collaboration for new debt-for-nature and debt-for-climate arrangements to finance the Philippines’ global climate commitments.
Since 2022, the Philippine and US governments have concluded two debt-for-nature swaps worth USD 40 million, allowing the redirection of Philippine debt payments owed to the US towards forest protection, biodiversity conservation, and climate action.
During the meeting, Secretary Recto also highlighted the Philippines’ robust economic outlook and the business-friendly reforms in place that have made the country more attractive to foreign investors.
He broached key sectors ripe for US investments, particularly defense and security, following the Philippine government’s recent enactment of the Self-Reliant Defense Posture Revitalization Act which aims to boost local defense industries, enhance military modernization efforts, and foster partnerships with allied nations.
Secretary Recto also underscored the Philippines’ strategic advantage as the US’ key security partner, citing both nations’ longstanding alliance and the Mutual Defense Treaty.
The Finance Chief also noted that the recent Trilateral Partnership between the US, the Philippines, and Japan strengthens the country’s position as a premier hub for American businesses, particularly in high-value industries such as semiconductors, renewable energy, power grids, telecommunications, data centers, and cybersecurity.
Joining Secretary Recto during the meeting were Chief of Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco, National Treasurer Sharon P. Almanza; WBG Alternate Executive Director Erwin Sta. Ana; and OIC Assistant Secretary Donalyn U. Minimo.
