Investors ignoring political noise – Teves

Finance Secretary Margarito Teves assured the people yesterday that foreign investors have ignored the political noise brought about by the controversial $329-million national broadband network (NBN) contract of the government and the Chinese firm ZTE Corp.

Teves had just arrived from a trip to the United States with President Arroyo and other Cabinet officials. Teves met with foreign investors, including rating agencies, on the sidelines of the 62nd United Nations General Assembly.

“They didn’t ask about that. They’re looking at the country’s economic fundamentals and nobody expressed concern on the ZTE deal,” said Teves, who met with representatives of rating agencies Moody’s Investors Service and Standard & Poor’s.

He said foreign businessmen seemed aware that the controversial deal does not reflect other projects in the Philippines.

In fact, he said foreign investors from New York and San Francisco even expressed interest in participating in future infrastructure projects in the Philippines.

The Finance chief also assured that the DOF is suspending its actions on the ZTE loan following the Supreme Court’s decision to defer the deal.

The Finance department is tasked to review government loans, including the $330 million which would be borrowed from the Chinese government’s export-import bank.

The controversial NBN contract involves linking all government agencies and local government units in one communication network, providing for instant communication of all government offices.

The DOF and the Department of Transportation and Communications (DOTC) are the two government departments tasked to implement the agreement.

Teves, however, assured that the government remains open to negotiations for loans from China in the future as he recognized that China is among the major providers of financial assistance to the Philippines.

Arroyo left for China yesterday morning for a two-day official visit to boost trade and political ties. She is expected to meet Chinese President Hu Jintao and Chinese businessmen.

Her trip comes a day after the resignation of Commission on Elections Chairman Benjamin Abalos, who was accused of brokering the ZTE contract.