Finance Secretary Ralph G. Recto has secured the backing of the United States Department of the Treasury to strengthen the Philippinesโ tax and customs administration system and boost the collection of much-needed revenues.
Senior U.S. Treasury officials, led by Undersecretary Jay C. Shambaugh, conveyed this commitment during a high-level meeting with Secretary Recto on October 24, 2024, in Washington, D.C.
The U.S. Department of the Treasury noted that since 2015, it has provided technical assistance to the Bureau of the Treasury (BTr) to help increase the Philippinesโ 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 countryโs fiscal management.
This includes the possible collaboration for new debt-for-nature and debt-for-climate arrangements to finance the Philippinesโ global climate commitments.
Since 2022, the Philippine and U.S. governments have concluded two debt-for-nature swaps worth USD 40 million, allowing the redirection of Philippine debt payments owed to the U.S. towards forest protection, biodiversity conservation, and climate action.
During the meeting, Secretary Recto also highlighted the Philippinesโ robust economic outlook and the business-friendly reforms in place that have made the country more attractive to foreign investors.
He discussed vital sectors ripe for U.S. investments, particularly defense and security, following the Philippine governmentโs recent enactment of the Self-Reliant Defense Posture Revitalization Act. This act aims to boost local defense industries, enhance military modernization efforts, and foster partnerships with allied nations.
Secretary Recto underscored the Philippinesโ strategic advantage as the U.S.โ key security partner, citing both nationsโ longstanding alliance and the Mutual Defense Treaty.
The Finance Chief also noted that the recent Trilateral Partnership between the U.S., the Philippines, and Japan strengthens the countryโs 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.
Secretary Recto, Chief of Staff, Undersecretary Maria Luwalhati Dorotan Tiuseco, National Treasurer Sharon P. Almanza, and WBG Alternate Executive Director Erwin Sta joined Secretary Recto during the meeting. Ana; and OIC Assistant Secretary Donalyn U. Minimo.
