In its latest IIF Report, the Institute of International Finance (IIF), a global association of the financial industry with about 400 members from more than 60 countries, has recognized the Philippines as the leading country in its prestigious “2024 Investor Relations and Debt Transparency Report.”
This accomplishment underscores the Philippines’ dedication to maintaining strong investor relations and enhancing financial transparency.
The Institute of International Finance, based in Washington D.C.
The IIF, based in Washington D.C., reported that the Philippines ascended to first place from its previous third-place ranking in 2023. The country’s score surged to 48.88 out of 50 points in 2024, up from 47.8 points the previous year. This improvement highlights the nation’s continuous efforts to refine its investor relations strategies and transparency protocols.
Indonesia followed the Philippines with a score of 48.75, while Turkey, Brazil, and Hungary scored 48.38, 47.50, and 47.21, respectively. The Philippines’ top ranking positions it as a global leader in investor relations and debt transparency, setting a high standard for other emerging markets and developing countries.
PH is tops in ESG in latest IIF report
The IIF report praised the Philippines for its exemplary efforts in investor engagement and transparency, particularly in providing comprehensive access to macroeconomic and environmental, social, and governance (ESG) data and policy information. The country’s investor relations program includes a wide array of initiatives designed to enhance communication and collaboration with investors and stakeholders.
Key components of the Philippines’ IR program include regular discussions between economic agencies and credit rating agencies, as well as active communication with both global and local banks. Additionally, the program organizes investor briefings both domestically and internationally, ensuring that stakeholders are well-informed about the country’s economic policies and developments.
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IIF Report: A Welcome News for the BSP
In a press release, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. expressed pride in the country’s accomplishment, stating, “The BSP welcomes the IIF’s recognition of the Philippines’ outstanding IR practices. We remain committed to working closely with the economic team in transparently communicating the country’s macroeconomic fundamentals and ongoing reforms.”
Governor Remolona’s remarks highlight the collaborative efforts between the BSP and other economic agencies in promoting transparency and fostering investor confidence.
The IIF plays a crucial role in establishing standards for best practices in IR and data dissemination for emerging markets and developing countries. These standards align with the Principles for Stable Capital Flows and Fair Debt Restructuring, which aim to promote stability and transparency in global financial markets.
The IIF’s assessment methodology combines rigorous desk research with a comprehensive survey of countries that have active IR programs. This approach helps determine three key scores: the IR Country Score, the Debt Transparency Score, and the ESG Data and Policy Dissemination Score.
In a related development, the BSP also reported an expansion in bank loans by 9.6% in April 2024. This growth signifies increased economic activity and financial intermediation, further fueling the country’s economic recovery and bolstering future growth prospects.
PH held the highest standards of transparency
The IR Country Score, which is based on 23 criteria, evaluates the overall effectiveness of a country’s investor relations program. The Debt Transparency Score, a subset of the IR Country Score, specifically focuses on the practices of sovereign borrowers in data and policy dissemination. Meanwhile, the ESG Data and Policy Dissemination Score, another subset of the IR Country Score, assesses how well sovereign borrowers disseminate ESG data and policies.
The Philippines’ top ranking in the 2024 IIF report is a testament to the country’s dedication to upholding the highest standards of transparency and investor relations. This achievement is expected to bolster investor confidence and attract more investments, further driving the country’s economic growth and development.
As the global financial landscape continues to evolve, the Philippines’ proactive approach to investor relations and debt transparency sets a powerful example for other nations. By prioritizing transparency and effective communication, the country is well-positioned to navigate the complexities of the international financial system and maintain its reputation as a reliable and trustworthy investment destination.
In the end, the Philippines’ success in the 2024 IIF report highlights the importance of robust investor relations and transparent financial practices. As the country continues to enhance its IR program and transparency measures, it paves the way for sustained economic growth and stability, reinforcing its status as a leader in the global financial community.