The US has pledged its support for the Philippines as its new President, Ms Gloria Macapagal Arroyo, tries to come to terms with the country's disastrous financial situation.
The governor of the Central Bank, Mr Rafael Buenaventura, said the government had 130 billion pesos (£2.3 billion) in the treasury. But the government posted a budget deficit of 136.11 billion pesos last year, more than double the original target. The Estrada administration had forecast a budget deficit of 130 billion pesos for 2001.
As President Arroyo began to tackle the economic mess left by the former ousted president, Mr Joseph Estrada, President Bush telephoned her and in a 10minute conversation told her he would assist in any way he could.
Ms Arroyo also received a boost from leaders of the International Monetary Fund and the World Bank. The IMF managing director, Mr Horst Koehler, said the fund was encouraged by Ms Arroyo's first policy pronouncements.
The World Bank president, Mr James Wolfensohn, backed Ms Arroyo's promise to fight poverty and restore good government and pledged the bank's "continued support and co-operation".
Mr Estrada has been ordered not to leave the country and to answer allegations of corruption and illegal acquisition of wealth. He is being investigated on charges of economic plunder, an offence punishable by death. The Justice Secretary, Mr Hernando Perez, dealt Mr Estrada another blow by rejecting any further claims he might have on the presidency.
Mr Perez said Mr Estrada's decision to leave the presidential palace, coupled with Ms Arroyo's oath-taking and the recognition she received from the diplomatic community, "foreclosed all questions regarding the legality and constitutionality of her assumption of the presidency".
Reuters adds: A call from Senate President Mr Aquilino Pimentel yesterday for Mr Estrada to be exiled to save the country from any "violent upheaval" underlined lingering concern about threats to the stability of the fledgling government.
Mr Pimentel said he was not insinuating that Mr Estrada would try to destabilise the new administration "but people who are his partisans could easily make him the rallying point".
"All I am saying is that if Mr Estrada is exiled into another country, he would be less of a problem to the nation," Mr Pimentel added.
Marine General Edgardo Espinosa voiced concern at the presence of supposed Estrada "loyalists" in the military and police forces.