Although the global financial markets appear to have stabilized, the full impact of the US subprime mortgage market woes has yet to be felt. This could affect the Philippines in two ways. First, growth in the export sector could soften as the US economy, a major trading  BIS Review 16/2008  1  partner of the Philippines, slows down.
First, to ensure that banks had access to longer-term funding, two three-year refinancing operations were undertaken at the end of 2011 and beginning of 2012. Second, in the summer of 2012, the announcement of Outright Monetary Transactions served as a powerful circuit breaker.