[Blueboard] 8 July 2005 Afternoon Report Corrected

Simbahang Lingkod ng Bayan slb at admu.edu.ph
Fri Jul 8 19:26:31 PHT 2005

8 July 2005 Afternoon Report
Simbahang Lingkod ng Bayan


Developments have been quick this day. It has also been a sad day for 
GMA as her allies begin to leave her holding the fort. 

Before lunch seven cabinet secretaries and three undersecretary-rank 
members issued a press statement regarding their severing off from the 
GMA government. This was led by Cesar Purisima, and key members of GMA's 
economic team.

Former president Corazon Aquino, who is perceived to be a neutral party 
and a moral guardian of the nation, also spoke this afternoon.  The fact 
that she requested for GMA's resignation affirms the sentiments of other 
groups that a change in leadership is the first step in solving the 
nation's crisis.  Given the strong sentiments of the public, GMA's 
reaction in the next 12 to 24 hours would be very crucial.

We are on a wait-and-see mode. We should also be on the watch for 
movements of political opportunism that may use the situation to fan the 
sentiments of discontent. There is a potential that many remarkable 
events will happen this coming weekend.

In financial sector, the Bangko Sentral ng Pilipinas reportedly 
increased the Reserve Requirements on Bank Deposits by 2 percentage 
points to 21%.  The new figure is broken down as follows:  Statutory 
Reserve at 10% and Liquidity Reserve at 11%.  The changes will take 
effect on July 15, 2005. This was done in order to manage excess Peso 
Liquidity in the Financial System and keep inflation at manageable 
levels.  Due to the decreased amount of Philippine Pesos circulating in 
the system, the cost of borrowing may also increase (we still have to 
see if the Bureau of Treasury would reject high bids on Monday which is 
the weekly auction day for Treasury Bills) On the other hand, the 
siphoning of funds used for speculating on USD/PHP trades would help 
curb the already depreciating Philippine Peso.

 Today (July 28, 2005), the PHP reached a high of 56.44 which was the 
highest since December 29, 2004.  Still, it is very close to the all 
time high of 56.45 which was posted last October 14, 2004.  This is an 
indication that market players are still basing trades on the technical 
formation of charts that indicates 56.45 as a strong resistance. There 
are also unconfirmed reports that the Philippine central bank is 
presently defending the peso at around the 56.40's level.  After former 
President Aquino's request for GMA's resignation the USD/PHP reached a 
low of 56.05 and closed at 56.10.   Technical analysis still shows a 
strong support level of USD/PHP 56.00.

 On a more positive note,  the Philippine Stock Exchange Composite Index 
(Phisix) posted gains for the 2nd straight day, by +28.96 points or 
+1.57% to close at 1876.28, the highest since July 4, 2005

News Updates_*

*Loyal Cabinet Ex-Secretaries React *(ANC)**

Remaining cabinet secretaries expressed support for PGMA. They blasted 
the group led by ex-Sec. Cesar Purisima of not being loyal to the 
president who needs help at this time. The best that they could have 
done was to keep mum about their leaving the PGMA's cabinet.

*Lacson appeals to PMA men in the Cabinet* (ANC)

Senator Lacson asks fellow "mistahs" in the cabinet to follow suit. He 
refused to join the calls of the opposition for everyone to resign. He 
gave his support for VP de Castro if PGMA resigns.

*Cory issues a press statement* (ANC)

Former president Corazon Aquino called on PGMA  to make the supreme 
sacrifice of resigning. She recognized that good and effective 
government is not possible. She also pointed out the regimes two 
remaining constitutional options.

The first is a voluntary resignation to a smooth transition to VP de 
Castro. The second is a congressional impeachment which will be long and 
will cast further suspicions towards PGMA.

She asked PGMA to spare our country and herself of the second option and 
make the sacrifice of resigning. Though she acknowledged the good things 
that PGMA has done, she invoked that the oath that PGMA took now urges 
her to relinquish the presidency. She ended her statement by asking the 
Lord to guide PGMA as she makes her decision.

*Business Organizations Take Different Paths* (ANC)

 The Philippine Chamber of Commerce and Industry sympathized with key 
resigned cabinet members but stressed that resignation is voluntary. It 
continued to support constitutional processes and promised that it will 
work with the economy.

 The Makati Business Club also gave a briefing that asked the president 
to relinquish the position of president for the sake of unity and moving 
forward. All moves must take firmly within the context of the constitution.

 *Regarding the Liberal and Nacionalista Parties* (ANC)

Some members of the Liberal Party led by Senate President Drilon, 
appealed to the president to vacate by way of voluntary resignation. The 
group said that if PGMA does not do so, it will support an impeachment 
process. After intensive analysis series of consultations, it sent an 
advisory vote to its executive council.

The Nacionalista party said that it will not join calls for the 
president to resign. They promised to continue critical collaboration 
with the administration and support constitutional processes. Speaking 
for the party, Senator Villar also admitted that the GMA regime is 
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