The Philippines’ gross international reserves climbed to $36.7 billion at the end of June from $36.2 billion a month earlier, partly boosted by proceeds from the sale of power assets by the government, the central bank said on Monday.

“The increase in reserves was attributed mainly to the deposit by the Power Sector Assets and Liabilities Management Corporation of proceeds from the privatization program of the National Power Corporation (Napocor), as well as the central bank’s income from its investments abroad, credits from foreign financial counterparties, and revaluation gains,” central bank governor Amando Tetangco Jr. said.

“These receipts were partly offset, however, by outflows arising mainly from payments of maturing foreign currency-denominated obligations of the national government and the central bank, and prepayments of Napocor’s various foreign loans,” he said in a statement.

The end-June reserves level can cover six months of imports of goods and payments of services and income. It was also equivalent to 5.1 times the country’s short-term external debt based on original maturity and 2.9 times based on residual maturity, the central bank said.

The central bank is aiming to boost the foreign reserves, including its holdings of gold and other foreign currencies, to a range of $35 billion to $37 billion by the end of the year, from $33.7 billion in 2007.

Source: http://www.afxnews.com

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