Manila Hotel awaits a partner

The Philippines began a privatization program in 1987, generating $4.5 billion to 1994 including a 60% stake of Petron Corp, with 40% of this sold to Saudi Arabian Oil Company (Aramco). Funds from privatization are being used to reduce the budget deficit, and the implementation of value added tax is scheduled for Oct 1994, which will further reduce the deficit. Aramco is helping to develop Petron as an exporter, and the local petroleum industry is also undergoing deregulation.