Belgium's state-owned Credendo, a credit insurance firm, is keen on partnerships with local businesses in the Philippines as it expects continued political and economic stability, the Department of Finance, or DoF, said Saturday. 

Credendo's chief executive officer Dirk Terweduwe expressed his interest in extending its services to the Philippines in a meeting with Finance Secretary Benjamin Diokno last Friday in Brussels.

Credendo offers companies insurance, reinsurance, guarantee, and export credit insurance against financial losses brought by currency depreciation, political disruptions and violence, or trade barriers.

Risks analyses by Credendo for the Philippines show it is generally peaceful, with low-risk rating under the political environment aspect.

However, the Belgian company found the Philippines has moderate risk for political violence, which refers to terrorism, internal and external conflicts, and citizens' level of satisfaction with the government.

In terms of business environment, Credendo said the country has close-to-moderate risk. This resulted from the foreign firm's analyses of the Philippine interest and inflation rates, and levels of corruption, employment and currency depreciation.

DoF said this overall positive assessment by the Belgian insurer on the Philippines reflects the Marcos administration's effective policies and financial management.

Stable outlook

"Terweduwe also shared that Credendo's risk outlook on the Philippines is stable, noting that the low external debt, adequate liquidity, and continued prudent government policies are supportive buffers in an uncertain climate," a statement from the DoF to the media said.

"Credendo has supported projects in the Philippines such as Turbulent Micro Hydro's demonstration site in Davao Oriental," the DoF added.

Nevertheless, Credendo's credit risk report said the Philippine government must minimize the effects of global economic slowdown.

"GDP growth is expected to slow down this year after two strong years. The global economic slowdown, weakening external demand for manufactured exports and geopolitical tensions all constitute downside risks," the report said.

Credendo has supported projects in the Philippines such as Turbulent Micro Hydro's demonstration site in Davao Oriental.

It said President Ferdinand Marcos Jr. must also calculate his approach on the Philippines-China territorial conflict over the West Philippine Sea, also known as South China Sea.

"President Marcos Jr.'s strengthening of the security alliance with the USA is increasing tensions with China in the South China Sea," Credendo's report said.

It said other major risks include "infrastructure gaps" and high poverty levels."