BAGUIO CITY – President Gloria Macapagal-Arroyo said Saturday the decision of the Lippo Group of Hong Kong to invest P3 billion for the rehabilitation of the Export Industry Bank (EIB) "bodes well for the further strengthening of the financial sector."

Speaking before a group of media practitioners at The Mansion here, the President said news of the new investment commitment was relayed to her by Philippine Deposit and Insurance Corporation (PDIC) President-CEO Ricardo Tan through one of her economic advisers.

Explaining the significance of the new investment, the President said "the conclusion of the agreement to rehabilitate the EIB between the Philippine regulators, that is the PDIC on the one hand –and an investor group -- which is the Lippo Bank, bodes well for the further strengthening of the financial sector."

"The agreement will see the infusion of fresh capital of at least P3 billion by the Lippo Group of Hong Kong and a consortium of new local investors," she said.

This new investment, coupled with the strengthening of the peso and the continued decline of crude oil prices in the world market, signals the renewed interest and confidence of foreign investors in the country as an investment destination, she added.

She expressed confidence that the decision of the Lippo Group will be complemented with other positive developments in the economic sector in the days ahead.

"This is yet another signal of a vibrant economy, thus propelling the nation to a bright New Year and shows the gleam of our capacity for renewal, leaving the past behind and working for a great leap forward," the President said.

The Lippo Group is a giant business conglomerate based in Jakarta, Indonesia, with interests in banking, finance and other enterprises. The listed assets of its flagship, Lippo Ltd., in 1995 was $3.6 billion. The firm owns only one bank in the United States but has extensive interests in Indonesia, Hong Kong and China.

The conglomerate was founded by Mochtar Riady, an ethnic Chinese born in Indonesia.

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BAGUIO CITY – President Gloria Macapagal-Arroyo has directed the Department of Environment and Natural Resources (DENR) and the local government of Banawe to restrict the construction of houses and other structures that block the view of the world famous Banawe rice terraces.

The President issued the directive during her weekend visit to the majestic rice terraces, one of the country’s top tourist attractions.

She expressed alarm over the increasing number of houses being built by informal settlers in the area, saying that left unchecked the construction activity will soon block the view of the terraces.

"I visited the area to make sure that the tourism program there will be sustainable," the President said.

During her Banawe visit, the President noticed that the number of houses in the area had doubled, according to Regional Director Purificacion Molintas of the Department of Tourism (DOT) for the Cordillera Autonomous Region (CAR).

The Chief Executive said that unless stopped, the informal settlers will continue building houses "until the view of the majestic terraces are completely blocked from sight."

She said she will issue a proclamation establishing a resettlement site for informal settlers to keep them out of the Banawe rice terraces area.

"The local government, DENR, represented by Secretary Mike Defensor, and I agreed that we will provide, by presidential proclamation, a resettlement site to be identified by the mayor of Banawe in order to prevent the blocking of the view of the beautiful rice terraces," the President said.

Aside from the Banawe rice terraces, the President also visited the rice terraces in Batad, Kabayan and Honduan.

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