![\"\"](\"/wp-content/uploads/2021/10/grocery-inflation.jpg\")
PHILIPPINE INFLATION eased in September from a near three-year high in the month prior, as the rise in the prices of food and transport slowed, the statistics agency said on Tuesday.
\nPreliminary data from the Philippine Statistics Authority (PSA) showed the consumer price index at 4.8% in September, slowing from the 32-month high of 4.9% in August. Still, this was above the 2.3% print recorded in September 2020.
\nLast month\u2019s inflation is below the 5% median in a 大象传媒 poll conducted late last week, and is at the low end of the 4.8%-5.6% estimate given by the Bangko Sentral ng Pilipinas (BSP) for September.
\n![\"Headline](\"https://live.staticflickr.com/65535/51554225100_c50413907f_o.jpg\")
Year-to-date inflation settled at 4.5%, still above the BSP\u2019s 2-4% target this year and above the forecast of 4.4% for the entire year.\u00a0 \u00a0
\nCore inflation, which discounted volatile prices of food and fuel, stood at 3.3% in August \u2014 steady from the previous month but slightly faster than last year\u2019s 3.2%. It averaged 3.3% so far this year.\u00a0 \u00a0
\nThe slower annual increase in the transport index at 5.2%, from 7.2% in the previous month helped pull down inflation, the PSA said. It was also the slowest year-on-year rise in transport prices since the 2.4% in June 2020.\u00a0 \u00a0
\nThe PSA also noted slower annual rates in the following indices: food and non-alcoholic beverages (6.2% from 6.5% in August); furnishing, household equipment, and routine maintenance of the house (2.4% from 2.5%); communication (0.2% from 0.3%); and education (0.9% from 1.1%). \u00a0 \u00a0
\nSimilarly, the September inflation rate for the bottom 30% of income households also eased to 5% from 5.3% in August. Still, this was faster than the previous year\u2019s 2.8%. From January to September, the bottom 30% inflation averaged 4.9%.
\nIn a note, Nomura Chief ASEAN Economist Euben Paracuelles and analyst Rangga Cipta cited the slowdown in food prices as a factor why September inflation settled below their forecast.
\n\u201cWe expected food prices to rise more significantly, partly on tighter agricultural supply given recent weather disturbances. Rice and vegetable prices picked up only modestly while meat and fish prices eased marginally,\u201d they said.\u00a0 \u00a0
\nIn addition, transport inflation eased to 5.2% year on year from 7.2%, marking its lowest level in a year despite the uptick in crude oil prices. Household utilities inflation, however, rose to 3.8% from 3.1%, consistent with higher electricity generation rates.\u00a0
\nThe food-alone index likewise eased to 6.5% in September from 6.9% in August. However, this was still faster than the annual 1.5% print recorded in September 2020.\u00a0 \u00a0
\nIn a statement, the National Economic and Development Authority (NEDA) said the decline in September inflation was aided by the government\u2019s policies aimed at bringing down food prices.
\nNEDA noted zero growth in rice inflation following the implementation of Executive Order (EO) 135 which lowered the tariff on rice imports to 35% from 40% for a year.
\n\u201cMeanwhile, meat inflation decreased to 15.6% from 16.4%, as pork inflation declined to 36.4% from 39%. Moreover, month-on-month meat inflation continued to decline at 1.6%, suggesting some price stabilization following the implementation of EOs No. 133 and 134,\u201d NEDA said.
\nThe government adopted EOs 133 and 134 in earlier in May to help increase the supply of pork in the country amid its shortage due to the African Swine Fever (ASF). These interventions increased the minimum access volume (MAV) for imported pork, and imposed a temporary reduction of pork tariffs, respectively.
\n\u2018REMAIN ELEVATED\u2019
\nBangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno in a statement said inflation may \u201cremain elevated in the near term\u201d before returning to within the 2-4% target range by end of the year.
\u201c[T]he recent inflation upticks is expected to be driven largely by supply side factors related to weather disruptions, global oil prospects, and continued impact of the [ASF]. These supply-side shocks are best addressed by timely non-monetary policy interventions that could ease domestic supply constraints,\u201d Mr. Diokno said, adding the return of inflation to the target band is \u201chighly contingent\u201d on the successful implementation of supply-side measures.\u00a0 \u00a0
\nInflation is projected to be close to the midpoint of the target range in 2022 and 2023 with expectations \u201cremaining firmly anchored\u201d to the target, he added.
\nMeanwhile, Nomura\u2019s Messrs. Paracuelles and Cipta see upside risks to their annual inflation forecast of 4.3% despite the decline in September.
\n\u201cAs we have discussed in previous reports, soaring energy prices should have a significant impact on headline inflation amid limited fiscal subsidies. We estimate that, if crude oil, LNG (liquefied natural gas) and coal prices stay at current levels for the rest of the year, headline inflation would rise to 5.2% in [the fourth quarter], 1.4 percentage points above our current forecasts,\u201d they explained.\u00a0 \u00a0
\nIn a separate note, ANZ Research economists Sanjay Mathur and Debalika Sarkar said that while latest result marks a \u201cwelcome break\u201d from the trend, it is \u201cunlikely to have any bearing on current monetary settings.\u201d
\n\u201cWe\u2026 are of the view that reviving growth needs to remain the main policy imperative over the next several quarters,\u201d they said.\u00a0 \u00a0
\nIn an e-mail, Asian Institute of Management economist John Paolo R. Rivera said the economy may see the combined effects of both \u201ccost-push\u201d and \u201cdemand-pull\u201d inflation in the coming months as the holiday season approaches.
\nIn a separate e-mail, Security Bank Corp. Chief Economist Robert Dan J. Roces expects the BSP to \u201cremain accommodative.\u201d
\n\u201c[I]ts preference in the meantime to support recovery means it has limited scope to move on policy in the near-term,\u201d Mr. Roces said.
\n\u201cFourth-quarter inflation may remain above-target\u2026 in October and November and likely easing into the BSP target range in December,\u201d he added.
\nThe central bank has maintained its key interest rate at a record low for the last seven consecutive policy meetings.
\n\u201cThe BSP stands ready to maintain its accommodative monetary policy stance for as long as necessary to support the economy\u2019s sustained recovery to the extent that the inflation outlook would allow,\u201d Mr. Diokno said. \u2014 Abigail Marie P. Yraola with inputs from Beatrice M. Laforga and Luz Wendy T. Noble
\n", "content_text": "Inflation eased in September, as the increase in prices of food and transport slowed. \u2014 PHILIPPINE STAR/ MICHAEL VARCAS\nPHILIPPINE INFLATION eased in September from a near three-year high in the month prior, as the rise in the prices of food and transport slowed, the statistics agency said on Tuesday.\nPreliminary data from the Philippine Statistics Authority (PSA) showed the consumer price index at 4.8% in September, slowing from the 32-month high of 4.9% in August. Still, this was above the 2.3% print recorded in September 2020.\nLast month\u2019s inflation is below the 5% median in a 大象传媒 poll conducted late last week, and is at the low end of the 4.8%-5.6% estimate given by the Bangko Sentral ng Pilipinas (BSP) for September.\n\nYear-to-date inflation settled at 4.5%, still above the BSP\u2019s 2-4% target this year and above the forecast of 4.4% for the entire year.\u00a0 \u00a0\nCore inflation, which discounted volatile prices of food and fuel, stood at 3.3% in August \u2014 steady from the previous month but slightly faster than last year\u2019s 3.2%. It averaged 3.3% so far this year.\u00a0 \u00a0\nThe slower annual increase in the transport index at 5.2%, from 7.2% in the previous month helped pull down inflation, the PSA said. It was also the slowest year-on-year rise in transport prices since the 2.4% in June 2020.\u00a0 \u00a0\nThe PSA also noted slower annual rates in the following indices: food and non-alcoholic beverages (6.2% from 6.5% in August); furnishing, household equipment, and routine maintenance of the house (2.4% from 2.5%); communication (0.2% from 0.3%); and education (0.9% from 1.1%). \u00a0 \u00a0\nSimilarly, the September inflation rate for the bottom 30% of income households also eased to 5% from 5.3% in August. Still, this was faster than the previous year\u2019s 2.8%. From January to September, the bottom 30% inflation averaged 4.9%.\nIn a note, Nomura Chief ASEAN Economist Euben Paracuelles and analyst Rangga Cipta cited the slowdown in food prices as a factor why September inflation settled below their forecast.\n\u201cWe expected food prices to rise more significantly, partly on tighter agricultural supply given recent weather disturbances. Rice and vegetable prices picked up only modestly while meat and fish prices eased marginally,\u201d they said.\u00a0 \u00a0\nIn addition, transport inflation eased to 5.2% year on year from 7.2%, marking its lowest level in a year despite the uptick in crude oil prices. Household utilities inflation, however, rose to 3.8% from 3.1%, consistent with higher electricity generation rates.\u00a0\nThe food-alone index likewise eased to 6.5% in September from 6.9% in August. However, this was still faster than the annual 1.5% print recorded in September 2020.\u00a0 \u00a0\nIn a statement, the National Economic and Development Authority (NEDA) said the decline in September inflation was aided by the government\u2019s policies aimed at bringing down food prices.\nNEDA noted zero growth in rice inflation following the implementation of Executive Order (EO) 135 which lowered the tariff on rice imports to 35% from 40% for a year.\n\u201cMeanwhile, meat inflation decreased to 15.6% from 16.4%, as pork inflation declined to 36.4% from 39%. Moreover, month-on-month meat inflation continued to decline at 1.6%, suggesting some price stabilization following the implementation of EOs No. 133 and 134,\u201d NEDA said.\nThe government adopted EOs 133 and 134 in earlier in May to help increase the supply of pork in the country amid its shortage due to the African Swine Fever (ASF). These interventions increased the minimum access volume (MAV) for imported pork, and imposed a temporary reduction of pork tariffs, respectively.\n\u2018REMAIN ELEVATED\u2019\nBangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno in a statement said inflation may \u201cremain elevated in the near term\u201d before returning to within the 2-4% target range by end of the year.\n\u201c[T]he recent inflation upticks is expected to be driven largely by supply side factors related to weather disruptions, global oil prospects, and continued impact of the [ASF]. These supply-side shocks are best addressed by timely non-monetary policy interventions that could ease domestic supply constraints,\u201d Mr. Diokno said, adding the return of inflation to the target band is \u201chighly contingent\u201d on the successful implementation of supply-side measures.\u00a0 \u00a0\nInflation is projected to be close to the midpoint of the target range in 2022 and 2023 with expectations \u201cremaining firmly anchored\u201d to the target, he added.\nMeanwhile, Nomura\u2019s Messrs. Paracuelles and Cipta see upside risks to their annual inflation forecast of 4.3% despite the decline in September.\n\u201cAs we have discussed in previous reports, soaring energy prices should have a significant impact on headline inflation amid limited fiscal subsidies. We estimate that, if crude oil, LNG (liquefied natural gas) and coal prices stay at current levels for the rest of the year, headline inflation would rise to 5.2% in [the fourth quarter], 1.4 percentage points above our current forecasts,\u201d they explained.\u00a0 \u00a0\nIn a separate note, ANZ Research economists Sanjay Mathur and Debalika Sarkar said that while latest result marks a \u201cwelcome break\u201d from the trend, it is \u201cunlikely to have any bearing on current monetary settings.\u201d\n\u201cWe\u2026 are of the view that reviving growth needs to remain the main policy imperative over the next several quarters,\u201d they said.\u00a0 \u00a0\nIn an e-mail, Asian Institute of Management economist John Paolo R. Rivera said the economy may see the combined effects of both \u201ccost-push\u201d and \u201cdemand-pull\u201d inflation in the coming months as the holiday season approaches.\nIn a separate e-mail, Security Bank Corp. Chief Economist Robert Dan J. Roces expects the BSP to \u201cremain accommodative.\u201d\n\u201c[I]ts preference in the meantime to support recovery means it has limited scope to move on policy in the near-term,\u201d Mr. Roces said.\n\u201cFourth-quarter inflation may remain above-target\u2026 in October and November and likely easing into the BSP target range in December,\u201d he added.\nThe central bank has maintained its key interest rate at a record low for the last seven consecutive policy meetings.\n\u201cThe BSP stands ready to maintain its accommodative monetary policy stance for as long as necessary to support the economy\u2019s sustained recovery to the extent that the inflation outlook would allow,\u201d Mr. Diokno said. \u2014 Abigail Marie P. Yraola with inputs from Beatrice M. Laforga and Luz Wendy T. Noble", "date_published": "2021-10-06T00:33:47+08:00", "date_modified": "2021-10-05T23:57:18+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/10/grocery-inflation.jpg", "tags": [ "Abigail Marie P. Yraola", "Beatrice M. Laforga", "Luz Wendy T. Noble", "Editors' Picks", "One News", "大象传媒" ], "summary": "PHILIPPINE INFLATION eased in September from a near three-year high in the month prior, as the rise in the prices of food and transport slowed, the statistics agency said on Tuesday." }, { "id": "/?p=401440", "url": "/economy/2021/10/05/401440/asia-pacific-e-commerce-seen-integrating-region-with-global-supply-chains/", "title": "Asia-Pacific e-commerce seen integrating region with global supply chains", "content_html": "THE HIGH LEVEL of development of digital commerce in the Asia Pacific is expected to help businesses more easily integrate with global supply chains and expand their pool of potential customers, according to an Asian Development Bank (ADB) official.
\nBambang Susantono, vice-president for Knowledge Management and Sustainable Development at the ADB, said: \u201cThe business potential for Asia\u2019s e-commerce, integrating regionally and globally is enormous. Businesses will be able to more easily enter the supply chains and export markets and extend that online customer base.\u201d
\nHe was speaking at a forum organized by the Financial Executives Institute of the Philippines Tuesday.
\nHe said e-commerce in the region has been vibrant with $2.5 trillion spent via online platforms in 2020, accounting for 64% of the world\u2019s retail digital commerce revenue.
\nE-commerce provides small businesses, which have been mostly left out in traditional markets, an effective platform to grow their businesses, he said.
\nThe Philippines is among the economies projected to establish a solid pool of consumers and businesses adopting digital channels, along with India, Indonesia and Malaysia.
\nHe said women-owned businesses that are going digital can also boost Southeast Asia\u2019s e-commerce market by $250 billion, citing World Bank estimates.
\nMr. Susantono said wider adoption of financial technology (fintech) in the region will play a major role in expanding financial inclusion, which will also boost the e-commerce sector.
\n\u201cADB supports expanding digital finance with a particular focus on reaching the underserved. In the Philippines, we supported cloud-based core banking system with Cantilan Bank to offer financial services in rural Mindanao. This has benefitted small businesses, farmers, women and youth.
\nThe market is starting to accept this emerging technology, he said, with more than 200 digital banks established worldwide since 2010.
\nHowever, Mr. Susantono said the region has to adopt reforms to support the fast-growing e-commerce and fintech industries, by increasing investment in cybersecurity, bridging the digital divide, and aligning of regulatory regimes across the region.
\nThe expected 21st century boom in Asia is \u201cundeniable\u201d with China becoming the world\u2019s second biggest economy, coupled with the growing potential of India, Jose Isidro N. Camacho, the vice-chairman for Credit Suisse Asia Pacific, said at the forum.
\nDespite optimism on the digital future of the region, Mr. Camacho, a former Philippine cabinet member overseeing the Departments of Energy and Finance, warned that Asia might struggle in terms of regional integration due to intensifying geopolitical tensions between the US and China.
\n\u201cI\u2019m afraid and I believe that this conflict will be this generation\u2019s cold war. It will profoundly influence regional and global developments, including the aspiration for an integrated Asia Pacific,\u201d Mr. Camacho said.
\n\u201cAsian economies like the Philippines will be under continuing pressure from both superpowers to choose sides, whether on trade issues, the choice of technology to adapt, or policymaking in international institutions. The rest of Asia will be confronted, having to make a choice and there will be consequences,\u201d he added. \u2014 Beatrice M. Laforga
\n", "content_text": "THE HIGH LEVEL of development of digital commerce in the Asia Pacific is expected to help businesses more easily integrate with global supply chains and expand their pool of potential customers, according to an Asian Development Bank (ADB) official.\nBambang Susantono, vice-president for Knowledge Management and Sustainable Development at the ADB, said: \u201cThe business potential for Asia\u2019s e-commerce, integrating regionally and globally is enormous. Businesses will be able to more easily enter the supply chains and export markets and extend that online customer base.\u201d\nHe was speaking at a forum organized by the Financial Executives Institute of the Philippines Tuesday.\nHe said e-commerce in the region has been vibrant with $2.5 trillion spent via online platforms in 2020, accounting for 64% of the world\u2019s retail digital commerce revenue.\nE-commerce provides small businesses, which have been mostly left out in traditional markets, an effective platform to grow their businesses, he said.\nThe Philippines is among the economies projected to establish a solid pool of consumers and businesses adopting digital channels, along with India, Indonesia and Malaysia.\nHe said women-owned businesses that are going digital can also boost Southeast Asia\u2019s e-commerce market by $250 billion, citing World Bank estimates.\nMr. Susantono said wider adoption of financial technology (fintech) in the region will play a major role in expanding financial inclusion, which will also boost the e-commerce sector.\n\u201cADB supports expanding digital finance with a particular focus on reaching the underserved. In the Philippines, we supported cloud-based core banking system with Cantilan Bank to offer financial services in rural Mindanao. This has benefitted small businesses, farmers, women and youth.\nThe market is starting to accept this emerging technology, he said, with more than 200 digital banks established worldwide since 2010.\nHowever, Mr. Susantono said the region has to adopt reforms to support the fast-growing e-commerce and fintech industries, by increasing investment in cybersecurity, bridging the digital divide, and aligning of regulatory regimes across the region.\nThe expected 21st century boom in Asia is \u201cundeniable\u201d with China becoming the world\u2019s second biggest economy, coupled with the growing potential of India, Jose Isidro N. Camacho, the vice-chairman for Credit Suisse Asia Pacific, said at the forum.\nDespite optimism on the digital future of the region, Mr. Camacho, a former Philippine cabinet member overseeing the Departments of Energy and Finance, warned that Asia might struggle in terms of regional integration due to intensifying geopolitical tensions between the US and China.\n\u201cI\u2019m afraid and I believe that this conflict will be this generation\u2019s cold war. It will profoundly influence regional and global developments, including the aspiration for an integrated Asia Pacific,\u201d Mr. Camacho said.\n\u201cAsian economies like the Philippines will be under continuing pressure from both superpowers to choose sides, whether on trade issues, the choice of technology to adapt, or policymaking in international institutions. The rest of Asia will be confronted, having to make a choice and there will be consequences,\u201d he added. \u2014 Beatrice M. Laforga", "date_published": "2021-10-05T20:49:15+08:00", "date_modified": "2021-10-05T20:49:15+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/s5.1-ecommerce-filefoto.jpg", "tags": [ "Beatrice M. Laforga", "Featured2", "Economy", "Editors' Picks" ], "summary": "THE HIGH LEVEL of development of digital commerce in the Asia Pacific is expected to help businesses more easily integrate with global supply chains and expand their pool of potential customers, according to an Asian Development Bank (ADB) official." }, { "id": "/?p=401169", "url": "/top-stories/2021/10/05/401169/bsp-caps-digital-bank-licenses-at-six/", "title": "BSP caps digital bank licenses at six", "content_html": "THE BANGKO SENTRAL ng Pilipinas (BSP) has capped the number of digital banking licenses to six after the remaining applicants failed to meet the requirements, BSP Governor Benjamin E. Diokno said on Monday.
\n\u201cWe have approved six digital banks and it will remain at six,\u201d Mr. Diokno told an annual conference event of the Financial Executives Institute of the Philippines (FINEX).
\nThe BSP decided not to increase the number of licenses to seven as previously announced after the nine entities with pending applications failed to submit documentary requirements, he said.
\nMr. Diokno said keeping the number of licensed digital banks at six for the meantime should allow regulators to closely monitor developments, and ensure there is healthy competition among digital banks and traditional lenders.
\nThe application period for digital banking licenses ended on Aug. 31.
\nIn a separate Viber message, the central bank chief said the Monetary Board (MB) could still reopen the window for applications if needed.
\n\u201cThe MB reserves the right to reopen the application subject to the need for more and the impact of the six digital banks on competition in the banking sector. Remember there are more than 500 universal and commercial, thrift, rural and cooperative banks already,\u201d Mr. Diokno said.
\nHe said one or two banks that secured their licenses are ready to operate, while others need more time to establish their operations.
\nDigital banks have a three-year window to operate after they get the license.
\nThe first bank to obtain the new license was Overseas Filipino Bank, a subsidiary of state-owned Land Bank of the Philippines.
\nAlso granted digital banking licenses were Tonik Digital Bank, Inc. (Philippines), UNObank, Aboitiz-led Union Digital Bank, and GOtyme, which is owned by the Gokongwei Group and Singapore financial technology (fintech) firm Tyme.
\nThe BSP gave the sixth license to Maya Bank, the fintech arm of Voyager Innovations, Inc.
\nMr. Diokno said lenders that gor their licenses are not required to set up branches or even branch-lite units, but are expected to maintain one headquarter office to minimize operating costs and focus their investments on new technology instead.
\nHowever, he said digital banks are also subject to \u201cprudential requirements\u201d that are imposed on traditional lenders.
\nLenders with digital banking licenses are expected to help the BSP reach its goal of bringing 70% of Filipinos into the formal banking system and have 50% of transactions done online by 2023.
\nMr. Diokno said the Philippines could still achieve a digital payments-driven and cashless society in 10 years.
\n\u201cI see the day when you can now ride the tricycle and jeepney using your QR code, buy meat from the market through QR code. We are strongly pushing for this,\u201d he said.
\n\u201cIt is really consistent with our desire to make the country a cash-lite economy from a cash-heavy society. In fact, it may even be a coinless society in five years,\u201d he added.
\nDIGITAL CURRENCY
\nMeanwhile, Mr. Diokno said the BSP is not likely to adopt its own central bank digital currency anytime soon, but a task force is studying the matter.
\u201cAs new technology, items and cryptocurrency are becoming more popular among central banks, we exchange notes and we want to make sure that we do this safely,\u201d he said. \u201cSo we have created a task force within BSP to study this so we\u2019ll make the necessary arrangements as needed. But right now, we are not into digital currency yet but we will probably be there in a few years,\u201d he added.
\nThe central bank chief said 6.6 million basic deposit accounts were opened in 133 banks last year, with a combined amount of P4.7 billion as the pandemic prompted a general shift toward digital platforms.
\nThe volume of electronic fund transfer through PESONet also surged by 164% year on year to 31.6 million in the first half of the year, while InstaPay transactions more than tripled to 201 million.
\nThe country has 87 banks and electronic money issuers that have coursed transactions through PESONet and 52 via InstaPay so far, he said. \u2014 Beatrice M. Laforga with a report from Luz Wendy T. Noble
\n", "content_text": "THE BANGKO SENTRAL ng Pilipinas (BSP) has capped the number of digital banking licenses to six after the remaining applicants failed to meet the requirements, BSP Governor Benjamin E. Diokno said on Monday.\n\u201cWe have approved six digital banks and it will remain at six,\u201d Mr. Diokno told an annual conference event of the Financial Executives Institute of the Philippines (FINEX).\nThe BSP decided not to increase the number of licenses to seven as previously announced after the nine entities with pending applications failed to submit documentary requirements, he said.\nMr. Diokno said keeping the number of licensed digital banks at six for the meantime should allow regulators to closely monitor developments, and ensure there is healthy competition among digital banks and traditional lenders. \nThe application period for digital banking licenses ended on Aug. 31. \nIn a separate Viber message, the central bank chief said the Monetary Board (MB) could still reopen the window for applications if needed.\n\u201cThe MB reserves the right to reopen the application subject to the need for more and the impact of the six digital banks on competition in the banking sector. Remember there are more than 500 universal and commercial, thrift, rural and cooperative banks already,\u201d Mr. Diokno said.\nHe said one or two banks that secured their licenses are ready to operate, while others need more time to establish their operations.\nDigital banks have a three-year window to operate after they get the license.\nThe first bank to obtain the new license was Overseas Filipino Bank, a subsidiary of state-owned Land Bank of the Philippines.\nAlso granted digital banking licenses were Tonik Digital Bank, Inc. (Philippines), UNObank, Aboitiz-led Union Digital Bank, and GOtyme, which is owned by the Gokongwei Group and Singapore financial technology (fintech) firm Tyme.\nThe BSP gave the sixth license to Maya Bank, the fintech arm of Voyager Innovations, Inc.\nMr. Diokno said lenders that gor their licenses are not required to set up branches or even branch-lite units, but are expected to maintain one headquarter office to minimize operating costs and focus their investments on new technology instead.\nHowever, he said digital banks are also subject to \u201cprudential requirements\u201d that are imposed on traditional lenders.\nLenders with digital banking licenses are expected to help the BSP reach its goal of bringing 70% of Filipinos into the formal banking system and have 50% of transactions done online by 2023.\nMr. Diokno said the Philippines could still achieve a digital payments-driven and cashless society in 10 years.\n\u201cI see the day when you can now ride the tricycle and jeepney using your QR code, buy meat from the market through QR code. We are strongly pushing for this,\u201d he said.\n\u201cIt is really consistent with our desire to make the country a cash-lite economy from a cash-heavy society. In fact, it may even be a coinless society in five years,\u201d he added.\nDIGITAL CURRENCY\nMeanwhile, Mr. Diokno said the BSP is not likely to adopt its own central bank digital currency anytime soon, but a task force is studying the matter. \n\u201cAs new technology, items and cryptocurrency are becoming more popular among central banks, we exchange notes and we want to make sure that we do this safely,\u201d he said. \u201cSo we have created a task force within BSP to study this so we\u2019ll make the necessary arrangements as needed. But right now, we are not into digital currency yet but we will probably be there in a few years,\u201d he added.\nThe central bank chief said 6.6 million basic deposit accounts were opened in 133 banks last year, with a combined amount of P4.7 billion as the pandemic prompted a general shift toward digital platforms.\nThe volume of electronic fund transfer through PESONet also surged by 164% year on year to 31.6 million in the first half of the year, while InstaPay transactions more than tripled to 201 million.\nThe country has 87 banks and electronic money issuers that have coursed transactions through PESONet and 52 via InstaPay so far, he said. \u2014 Beatrice M. Laforga with a report from Luz Wendy T. Noble", "date_published": "2021-10-05T00:33:15+08:00", "date_modified": "2021-10-05T00:00:54+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/BSP.jpg", "tags": [ "Beatrice M. Laforga", "Luz Wendy T. Noble", "Editors' Picks", "One News", "大象传媒" ], "summary": "THE BANGKO SENTRAL ng Pilipinas (BSP) has capped the number of digital banking licenses to six after the remaining applicants failed to meet the requirements, BSP Governor Benjamin E. Diokno said on Monday." }, { "id": "/?p=401087", "url": "/banking-finance/2021/10/05/401087/mufg-expects-stronger-peso-this-quarter-on-increased-remittances-during-holidays/", "title": "MUFG expects stronger peso this quarter on increased remittances during holidays", "content_html": "THE PESO is seen to appreciate against the greenback this quarter and rebound from its weak performance last month as the nearing holiday season is likely to boost overseas Filipino worker (OFW) remittances, analysts from MUFG Bank, Ltd. said.
\nIn its monthly foreign exchange outlook published Monday, MUFG said the local currency could rebound to P50.50 per dollar this quarter from its P51.01 close on Sept. 30 and trade within a wide range of P48.50-P52 in those three months.
\nThe peso logged closes ranging from P49.73 to P51.01 against the greenback in September, making it the second-worst performing Asian currency after the Thai baht, according to the report.
\nIt attributed the peso\u2019s decline last month to concerns over stubbornly high inflation as this could affect the economy\u2019s recovery.
\nInflation likely quickened beyond the central bank\u2019s target in September, as prices of food and utilities continued to surge, according to analysts.
\nA 大象传媒 poll of 17 analysts yielded a median estimate of 5% for the consumer price index, near the low end of the 4.8%-5.6% estimate given by the Bangko Sentral ng Pilipinas (BSP).
\nIf realized, headline inflation will breach the BSP\u2019s 2-4% target range for the second straight month. This will also be faster than the 4.9% print in August and the 2.3% a year earlier and mark the quickest rise since the 5.1% in December 2018.
\nThe Philippine Statistics Authority will report September inflation data on Oct. 5.
\nMUFG said it does not expect the BSP to tighten its policy settings despite elevated inflation as still needs to support economic recovery.
\n\u201cThe BSP would not want to risk hiking rates too soon as the output gap remains fairly large. The BSP is likely to maintain an accommodative monetary policy for some time,\u201d it said.
\nEvergrande\u2019s debt woes and the US dollar\u2019s strength following the US Federal Reserve\u2019s hints on tapering its asset purchases also contributed to the peso\u2019s drop in September, MUFG said.
\n\u201cAs we head towards yearend, we maintain our view that the peso is likely to receive support from the seasonal spike in OFW remittances particularly in December when it usually peaks due to the Christmas holidays,\u201d it said.
\n\u201cThis is not to mention the fact that remittances continue to be on the rise as more workers are deployed overseas,\u201d MUFG added.
\nLatest BSP data showed OFW remittances rose by 2.5% from the year earlier to $2.853 billion in July, which was its highest level in seven months or since the $2.89 billion seen in December 2020.
\n\u201cRobust business process outsourcing revenue is another positive factor for the peso,\u201d MUFG said.
\nHowever, following an expected rebound in the last months of 2021, MUFG expects the peso to weaken anew in 2022 and could range between P48.75 and P52.52 versus the greenback in the first quarter of that year for a point foreign exchange projection of P50.75.
\nIt expects the local unit to trade within P49-P52.50 in the second quarter of 2022 and hover within P51-per-dollar level. In the July-September period, the peso is expected to range from P49.25 to P52.65 and settle at around P51.25 against the greenback. \u2014 B.M. Laforga
\n", "content_text": "THE PESO is seen to appreciate against the greenback this quarter and rebound from its weak performance last month as the nearing holiday season is likely to boost overseas Filipino worker (OFW) remittances, analysts from MUFG Bank, Ltd. said.\nIn its monthly foreign exchange outlook published Monday, MUFG said the local currency could rebound to P50.50 per dollar this quarter from its P51.01 close on Sept. 30 and trade within a wide range of P48.50-P52 in those three months.\nThe peso logged closes ranging from P49.73 to P51.01 against the greenback in September, making it the second-worst performing Asian currency after the Thai baht, according to the report.\nIt attributed the peso\u2019s decline last month to concerns over stubbornly high inflation as this could affect the economy\u2019s recovery.\nInflation likely quickened beyond the central bank\u2019s target in September, as prices of food and utilities continued to surge, according to analysts.\nA 大象传媒 poll of 17 analysts yielded a median estimate of 5% for the consumer price index, near the low end of the 4.8%-5.6% estimate given by the Bangko Sentral ng Pilipinas (BSP).\nIf realized, headline inflation will breach the BSP\u2019s 2-4% target range for the second straight month. This will also be faster than the 4.9% print in August and the 2.3% a year earlier and mark the quickest rise since the 5.1% in December 2018.\nThe Philippine Statistics Authority will report September inflation data on Oct. 5.\nMUFG said it does not expect the BSP to tighten its policy settings despite elevated inflation as still needs to support economic recovery.\n\u201cThe BSP would not want to risk hiking rates too soon as the output gap remains fairly large. The BSP is likely to maintain an accommodative monetary policy for some time,\u201d it said.\nEvergrande\u2019s debt woes and the US dollar\u2019s strength following the US Federal Reserve\u2019s hints on tapering its asset purchases also contributed to the peso\u2019s drop in September, MUFG said.\n\u201cAs we head towards yearend, we maintain our view that the peso is likely to receive support from the seasonal spike in OFW remittances particularly in December when it usually peaks due to the Christmas holidays,\u201d it said.\n\u201cThis is not to mention the fact that remittances continue to be on the rise as more workers are deployed overseas,\u201d MUFG added.\nLatest BSP data showed OFW remittances rose by 2.5% from the year earlier to $2.853 billion in July, which was its highest level in seven months or since the $2.89 billion seen in December 2020.\n\u201cRobust business process outsourcing revenue is another positive factor for the peso,\u201d MUFG said.\nHowever, following an expected rebound in the last months of 2021, MUFG expects the peso to weaken anew in 2022 and could range between P48.75 and P52.52 versus the greenback in the first quarter of that year for a point foreign exchange projection of P50.75.\nIt expects the local unit to trade within P49-P52.50 in the second quarter of 2022 and hover within P51-per-dollar level. In the July-September period, the peso is expected to range from P49.25 to P52.65 and settle at around P51.25 against the greenback. \u2014 B.M. Laforga", "date_published": "2021-10-05T00:02:12+08:00", "date_modified": "2021-10-04T18:55:49+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/04/banking-and-finance-default.jpg", "tags": [ "Beatrice M. Laforga", "Featured2", "Banking & Finance", "Editors' Picks" ], "summary": "THE PESO is seen to appreciate against the greenback this quarter and rebound from its weak performance last month as the nearing holiday season is likely to boost overseas Filipino worker (OFW) remittances, analysts from MUFG Bank, Ltd. said." }, { "id": "/?p=401085", "url": "/banking-finance/2021/10/04/401085/peso-strengthens-as-dollar-takes-hit-from-us-debt-ceiling-impasse/", "title": "Peso strengthens as dollar takes hit from US debt ceiling impasse", "content_html": "THE PESO appreciated on Monday as the debate on the proposed US debt ceiling dragged on, affecting the dollar.
\nThe local unit closed at P50.70 per dollar on Monday, gaining nine centavos from its P50.79 on Friday, based on the Bankers Association of the Philippines\u2019 data.
\nThe peso opened Monday\u2019s session at P50.74 versus the greenback. Its strongest showing was at P50.68, while its weakest point was at P50.815 per dollar.
\nDollars traded dropped to $857.54 million on Monday from $882.16 million on Friday.
\n\u201cThe peso appreciated as the greenback\u2019s appeal waned from the lingering political uncertainty around the US debt ceiling and the prospects of more stimulus bills from the Democrats,\u201d a trader said via e-mail.
\nInvestors are getting more nervous over the looming fiscal crisis if the US Congress does not decide on whether the debt ceiling has to be raised or not to avoid a possible government shutdown and its first-ever default, Reuters reported.
\nBack home, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the delivery of more coronavirus vaccines sparked optimism on the government\u2019s inoculation drive and the economy\u2019s recovery, which boosted the peso.
\n\u201cPeso is also stronger as the markets anticipate some seasonal increase in OFW (overseas Filipino worker) remittances and conversion to pesos into the fourth quarter, especially towards the Christmas season,\u201d he added.
\nLatest central bank data showed OFW remittances rose by 2.5% from the year earlier to $2.853 billion in July, its highest level in seven months or since the $2.89 billion in December 2020.
\nThe trader said the peso could weaken anew on Tuesday on expectations of faster inflation in September.
\nA 大象传媒 poll of 17 analysts showed a median estimate of 5% for September headline inflation, or near the lower end of the Bangko Sentral ng Pilipinas\u2019 estimate of 4.8%-5.6% for the month.
\nThe Philippine Statistics Authority will report September inflation data on Oct. 5.
\nMr. Ricafort said the local unit may range from P50.60 to P50.80 on Tuesday, while the trader gave a slightly wider forecast range of P50.60 to P50.85. \u2014 B.M. Laforga with Reuters
\n", "content_text": "THE PESO appreciated on Monday as the debate on the proposed US debt ceiling dragged on, affecting the dollar.\nThe local unit closed at P50.70 per dollar on Monday, gaining nine centavos from its P50.79 on Friday, based on the Bankers Association of the Philippines\u2019 data.\nThe peso opened Monday\u2019s session at P50.74 versus the greenback. Its strongest showing was at P50.68, while its weakest point was at P50.815 per dollar.\nDollars traded dropped to $857.54 million on Monday from $882.16 million on Friday.\n\u201cThe peso appreciated as the greenback\u2019s appeal waned from the lingering political uncertainty around the US debt ceiling and the prospects of more stimulus bills from the Democrats,\u201d a trader said via e-mail.\nInvestors are getting more nervous over the looming fiscal crisis if the US Congress does not decide on whether the debt ceiling has to be raised or not to avoid a possible government shutdown and its first-ever default, Reuters reported.\nBack home, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the delivery of more coronavirus vaccines sparked optimism on the government\u2019s inoculation drive and the economy\u2019s recovery, which boosted the peso.\n\u201cPeso is also stronger as the markets anticipate some seasonal increase in OFW (overseas Filipino worker) remittances and conversion to pesos into the fourth quarter, especially towards the Christmas season,\u201d he added.\nLatest central bank data showed OFW remittances rose by 2.5% from the year earlier to $2.853 billion in July, its highest level in seven months or since the $2.89 billion in December 2020.\nThe trader said the peso could weaken anew on Tuesday on expectations of faster inflation in September.\nA 大象传媒 poll of 17 analysts showed a median estimate of 5% for September headline inflation, or near the lower end of the Bangko Sentral ng Pilipinas\u2019 estimate of 4.8%-5.6% for the month.\nThe Philippine Statistics Authority will report September inflation data on Oct. 5.\nMr. Ricafort said the local unit may range from P50.60 to P50.80 on Tuesday, while the trader gave a slightly wider forecast range of P50.60 to P50.85. \u2014 B.M. Laforga with Reuters", "date_published": "2021-10-04T21:00:10+08:00", "date_modified": "2021-10-04T23:51:54+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/Peso-currency-3.jpg", "tags": [ "Beatrice M. Laforga", "currency", "dollar", "peso", "Banking & Finance", "One News" ], "summary": "THE PESO appreciated on Monday as the debate on the proposed US debt ceiling dragged on, affecting the dollar." }, { "id": "/?p=400798", "url": "/top-stories/2021/10/04/400798/phl-raises-1-6b-via-retail-dollar-bonds/", "title": "PHL raises $1.6B via retail dollar bonds", "content_html": "THE GOVERNMENT raised $1.593 billion (P80.91 billion) from its first-ever onshore retail dollar bond (RDB) sale last week, as it sought to support the widening budget deficit, the Bureau of the Treasury (BTr) said.
\nFinance Secretary Carlos G. Dominguez III told reporters over the weekend that the BTr closed its two-week offering of five-year and 10-year RDBs on Friday, awarding nearly four times as much as the initial $400-million target amid strong investor participation via electronic channels.
\n\u201cStrong outcome could be attributed to platform channels used to disseminate far and wide information on RDB including access with our BTr mobile app and convenient and user-friendly investing apps like Bonds.ph, OF Bank app, First Metro Securities app and BTr ordering platform,\u201d National Treasurer Rosalia V. de Leon said in a Viber message on Sunday.
\nMore than half or $809.2 million worth of RDBs were sold through the digital channels in 520 transactions, according to Mr. Dominguez, which meant there was $1,500 worth of placements per online transaction.
\n\u201cOf this volume of digital placements, roughly 40% or $329,400 are PesoClear placements. We were also able to reach Filipinos from more than 30 countries for the RDBs, including the Cayman Islands, Papua New Guinea, and Cyprus to name some,\u201d the Finance chief said, citing a report from the Treasury.
\nMs. De Leon said the higher-than-market rates offered by RDBs also helped attract small investors, lifting the overall amount raised during its maiden sale. No other details were available.
\nProceeds of the fundraising activity will be used to fund the government\u2019s recovery and resilience programs, as well as big-ticket infrastructure projects.
\nDuring the price-setting auction on Sept. 15, the Treasury raised an initial $866.2 million, broken down into $551.8 million in five-year RDBs and $314.4 million via the 10-year dollar-denominated notes.
\nThe five-year bonds, which will mature in October 2026, had a coupon rate of 1.375%, while the 10-year bonds due in October 2031 fetched a 2.25% coupon.
\nThe offer ran from Sept. 15 to Oct. 1. The RDBs were sold at a minimum investment of $300 (P15,000), with increments of $100 thereafter.
\nThe bonds will be settled on Oct. 8 and will be listed and traded on the Philippine Dealing and Exchange Corp.
\nThe state-run Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines served as the joint lead issue managers for the issuance, along with BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., Standard Chartered Bank and UnionBank of the Philippines.
\nThe last time the BTr offered onshore dollar-denominated bonds was in December 2012, when it offered the papers to institutional investors only, raising $500 million in 10.5-year bonds from $1.7 billion in total bids.
\nThe government aims to raise P3 trillion this year from local and foreign sources to plug its budget deficit seen to hit 9.3% of overall economic output. \u2014 Beatrice M. Laforga
\n", "content_text": "THE GOVERNMENT raised $1.593 billion (P80.91 billion) from its first-ever onshore retail dollar bond (RDB) sale last week, as it sought to support the widening budget deficit, the Bureau of the Treasury (BTr) said.\nFinance Secretary Carlos G. Dominguez III told reporters over the weekend that the BTr closed its two-week offering of five-year and 10-year RDBs on Friday, awarding nearly four times as much as the initial $400-million target amid strong investor participation via electronic channels.\n\u201cStrong outcome could be attributed to platform channels used to disseminate far and wide information on RDB including access with our BTr mobile app and convenient and user-friendly investing apps like Bonds.ph, OF Bank app, First Metro Securities app and BTr ordering platform,\u201d National Treasurer Rosalia V. de Leon said in a Viber message on Sunday.\nMore than half or $809.2 million worth of RDBs were sold through the digital channels in 520 transactions, according to Mr. Dominguez, which meant there was $1,500 worth of placements per online transaction.\n\u201cOf this volume of digital placements, roughly 40% or $329,400 are PesoClear placements. We were also able to reach Filipinos from more than 30 countries for the RDBs, including the Cayman Islands, Papua New Guinea, and Cyprus to name some,\u201d the Finance chief said, citing a report from the Treasury. \nMs. De Leon said the higher-than-market rates offered by RDBs also helped attract small investors, lifting the overall amount raised during its maiden sale. No other details were available.\nProceeds of the fundraising activity will be used to fund the government\u2019s recovery and resilience programs, as well as big-ticket infrastructure projects.\nDuring the price-setting auction on Sept. 15, the Treasury raised an initial $866.2 million, broken down into $551.8 million in five-year RDBs and $314.4 million via the 10-year dollar-denominated notes.\nThe five-year bonds, which will mature in October 2026, had a coupon rate of 1.375%, while the 10-year bonds due in October 2031 fetched a 2.25% coupon.\nThe offer ran from Sept. 15 to Oct. 1. The RDBs were sold at a minimum investment of $300 (P15,000), with increments of $100 thereafter.\nThe bonds will be settled on Oct. 8 and will be listed and traded on the Philippine Dealing and Exchange Corp.\nThe state-run Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines served as the joint lead issue managers for the issuance, along with BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., Standard Chartered Bank and UnionBank of the Philippines.\nThe last time the BTr offered onshore dollar-denominated bonds was in December 2012, when it offered the papers to institutional investors only, raising $500 million in 10.5-year bonds from $1.7 billion in total bids.\nThe government aims to raise P3 trillion this year from local and foreign sources to plug its budget deficit seen to hit 9.3% of overall economic output. \u2014 Beatrice M. Laforga", "date_published": "2021-10-04T00:33:32+08:00", "date_modified": "2021-10-03T19:02:17+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/Dollar-bills-currency.jpg", "tags": [ "Beatrice M. Laforga", "Editors' Picks", "大象传媒" ], "summary": "THE GOVERNMENT raised $1.593 billion (P80.91 billion) from its first-ever onshore retail dollar bond (RDB) sale last week, as it sought to support the widening budget deficit, the Bureau of the Treasury (BTr) said." }, { "id": "/?p=400796", "url": "/top-stories/2021/10/04/400796/gross-borrowings-hit-p2-4t/", "title": "Gross borrowings hit P2.4T", "content_html": "GROSS BORROWINGS by the National Government reached P2.387 trillion in the first eight months of the year as it continued to raise funds for the pandemic response, data from the Bureau of the Treasury (BTr) showed.
\nBased on preliminary data from the BTr, the eight-month borrowings were 3.52% smaller compared with the P2.47 trillion logged in the January-August period last year. The government sold retail Treasury bonds (RTBs) in August 2020.
\nIn August alone, the BTr incurred P117.74 billion in new debts, down by 81% from the P612.913 billion in the same month last year, following the P516-billion RTB issuance in the same month a year ago. This was also 65% smaller when compared with P337.15 billion recorded in July.
\nLocal borrowings accounted for 85.75% of the total.
\nDomestic borrowings stood at P100.967 billion in August, slumping by 82.7% from P584.4 billion a year ago. Month on month, new local debts also declined by 44% from P180.36 billion in July.
\nDuring the month, the government raised P132 billion via the weekly offering of Treasury bonds (T-bonds). This was partly offset by the P31 billion in net issuance of Treasury bills (T-bills).
\nExcluding the P171-million amortization, net domestic borrowings hit P100.796 billion in August.
\nMeanwhile, gross external borrowings stood at P16.77 billion in August, dropping 41.2% from P28.54 billion recorded a year ago and much smaller than the P156.79 billion in July.
\nThe government obtained P12.17 billion in new foreign project loans in August, and another P4.6 billion via program loans.
\nIt also made P50.98 billion in amortization payments. This resulted in a net redemption worth P34.21 billion in August.
\nYear to date, the government\u2019s new debt accounted for 80% of the P3-trillion borrowing plan for the entire year. This consisted of 81% in domestic debt and 19% in foreign loans as the state prefers sourcing the majority of its debt from the local market to minimize external risks and foreign-currency fluctuations.
\nGross domestic borrowings dipped 1.6% to P1.929 trillion during the January to August period. This was made up of P911.86 billion in T-bonds, P463.3 billion in RTBs, P540 billion in short-term borrowings from the central bank, and P14 billion in T-bills.
\nNet borrowings for the period reached P1.876 trillion, after the BTr repaid P405.4 billion of its maturing obligations.
\nGross external borrowings for the eight-month period fell by 10% to P458.51 billion from P509.7 billion a year ago.
\nThe Treasury raised P146.17 billion from global bonds, P121.97 billion from euro-denominated notes, and P24.19 billion in Japanese yen-denominated securities. It also incurred P99.69 billion in program loans, and P66.5 billion in project loans.
\nThe government repaid P212.52 billion of its outstanding foreign debt so far, resulting in P245.99 billion in net external borrowings for the period.
\nThe government borrows from local and foreign sources to plug a budget deficit seen to hit 9.3% of gross domestic product (GDP) this year.
\nThe state\u2019s outstanding debt surged 21% to P11.64 trillion at the end of August.
\nEconomic managers are planning to scale down borrowings starting next year as part of its debt consolidation plan.
\nThe debt stock is projected to hit 59.1% of GDP by yearend and peak at 60.8% in 2022, before easing to 60.7% in 2023 and to 59.7% in 2024. \u2014 Beatrice M. Laforga
\n", "content_text": "GROSS BORROWINGS by the National Government reached P2.387 trillion in the first eight months of the year as it continued to raise funds for the pandemic response, data from the Bureau of the Treasury (BTr) showed.\nBased on preliminary data from the BTr, the eight-month borrowings were 3.52% smaller compared with the P2.47 trillion logged in the January-August period last year. The government sold retail Treasury bonds (RTBs) in August 2020. \nIn August alone, the BTr incurred P117.74 billion in new debts, down by 81% from the P612.913 billion in the same month last year, following the P516-billion RTB issuance in the same month a year ago. This was also 65% smaller when compared with P337.15 billion recorded in July.\nLocal borrowings accounted for 85.75% of the total.\nDomestic borrowings stood at P100.967 billion in August, slumping by 82.7% from P584.4 billion a year ago. Month on month, new local debts also declined by 44% from P180.36 billion in July.\nDuring the month, the government raised P132 billion via the weekly offering of Treasury bonds (T-bonds). This was partly offset by the P31 billion in net issuance of Treasury bills (T-bills).\nExcluding the P171-million amortization, net domestic borrowings hit P100.796 billion in August.\nMeanwhile, gross external borrowings stood at P16.77 billion in August, dropping 41.2% from P28.54 billion recorded a year ago and much smaller than the P156.79 billion in July.\nThe government obtained P12.17 billion in new foreign project loans in August, and another P4.6 billion via program loans.\nIt also made P50.98 billion in amortization payments. This resulted in a net redemption worth P34.21 billion in August.\nYear to date, the government\u2019s new debt accounted for 80% of the P3-trillion borrowing plan for the entire year. This consisted of 81% in domestic debt and 19% in foreign loans as the state prefers sourcing the majority of its debt from the local market to minimize external risks and foreign-currency fluctuations.\nGross domestic borrowings dipped 1.6% to P1.929 trillion during the January to August period. This was made up of P911.86 billion in T-bonds, P463.3 billion in RTBs, P540 billion in short-term borrowings from the central bank, and P14 billion in T-bills.\nNet borrowings for the period reached P1.876 trillion, after the BTr repaid P405.4 billion of its maturing obligations.\nGross external borrowings for the eight-month period fell by 10% to P458.51 billion from P509.7 billion a year ago.\nThe Treasury raised P146.17 billion from global bonds, P121.97 billion from euro-denominated notes, and P24.19 billion in Japanese yen-denominated securities. It also incurred P99.69 billion in program loans, and P66.5 billion in project loans. \nThe government repaid P212.52 billion of its outstanding foreign debt so far, resulting in P245.99 billion in net external borrowings for the period.\nThe government borrows from local and foreign sources to plug a budget deficit seen to hit 9.3% of gross domestic product (GDP) this year.\nThe state\u2019s outstanding debt surged 21% to P11.64 trillion at the end of August.\nEconomic managers are planning to scale down borrowings starting next year as part of its debt consolidation plan.\nThe debt stock is projected to hit 59.1% of GDP by yearend and peak at 60.8% in 2022, before easing to 60.7% in 2023 and to 59.7% in 2024. \u2014 Beatrice M. Laforga", "date_published": "2021-10-04T00:31:30+08:00", "date_modified": "2021-10-03T19:01:40+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/Peso-currency-1.jpg", "tags": [ "Beatrice M. Laforga", "Featured2", "Editors' Picks", "大象传媒" ], "summary": "GROSS BORROWINGS by the National Government reached P2.387 trillion in the first eight months of the year as it continued to raise funds for the pandemic response, data from the Bureau of the Treasury (BTr) showed." }, { "id": "/?p=400730", "url": "/banking-finance/2021/10/04/400730/t-bill-bond-rates-to-end-mixed/", "title": "T-bill, bond rates to end mixed", "content_html": "YIELDS ON government securities on offer this week will likely end mixed on concerns over rising inflation and looming rate hikes.
\nThe Bureau of the Treasury (BTr) will offer P15 billion in Treasury bills (T-bills) on Monday, broken down into P5 billion each in 91-, 182- and 364-day debt papers.
\nOn Tuesday, it will auction off reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and 10 months.
\nTwo bond traders said T-bill rates will continue to move sideways this week as investors are looking to put their excess liquidity in these short-term safe-haven instruments.
\nHowever, for the longer-tenored T-bonds, the traders expect its yield to shoot up on fears of rising inflation and possible policy tightening by the US central bank.
\nThe first trader said the average rate of the seven-year bonds on offer on Tuesday could range from 4.050% to 4.2%, while the second trader gave a higher estimate range of 4.15-4.3%.
\n\u201cTraders will be watching inflation for the previous month since the BSP (Bangko Sentral ng Pilipinas) may consider raising interest rates sooner if inflation remains elevated. Also, some [US Federal Reserve] officials think that tapering of bond purchases based on economic data may be warranted as soon as November,\u201d the second bond trader said via Viber on Saturday.
\nA 大象传媒 poll of 17 analysts yielded a median estimate of 5% for September headline inflation, closer to the upper end of the central bank\u2019s 4.8%-5.6% estimate for the month and above its 2-4% target for the year. If realized, this will be faster than the 4.9% in August as well as the 2.4% a year earlier. It will also be the quickest print since the 5.1% in December 2018.
\nAnalysts said higher food and utility prices as well as base effects likely caused a continued uptrend in inflation last month.
\nThe Philippine Statistics Authority will report September inflation data on Tuesday, Oct. 5.
\nMeanwhile, the Fed earlier said it could hike rates as early as next year as it could taper its monthly bond purchases by November, Reuters reported.
\n\u201cThe local bond market will also price in the rally in global oil prices and the standoff in raising US debt ceiling [last] week,\u201d the first trader added.
\nOil prices reached nearly $80 per barrel due to depleting stockpiles as oil producers struggled to keep up with the rising demand amid a global economic recovery.
\nMeanwhile, Reuters reported that investors are getting more nervous over the looming fiscal crisis if the US Congress will not decide whether the debt ceiling has to be raised or not to avoid a possible government shutdown and its first-ever default.
\nThe BTr last week upsized the volume of T-bills it awarded to P17 billion as total tenders reached P63.865 billion.
\nBroken down, it raised P5 billion as planned from the 91-day debt papers at an average rate of 1.06%, up from 1.07% the week prior.
\nIt also awarded P5 billion as programmed in 182-day T-bills as its average yield fell to 1.385% from 1.389% previously.
\nLastly, the BTr borrowed P7 billion via the 364-day securities, higher than the P5-billion plan, at an average rate of 1.582%, down from 1.597% the previous week.
\nMeanwhile, the last time the Treasury offered the seven-year bonds was on Sept. 21, when it made a full P35-billion award of the reissued papers and raised another P5 billion via the tap facility. The bonds attracted P76.128 billion in bids while its average rate climbed to 3.826% from the 3.789% seen in the previous auction.
\nAt the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.13%, 1.393% and 1.663%, respectively, while the seven-year tenor fetched 3.899%, according to the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System\u2019s website.
\nThe BTr is looking to raise P200 billion from the local market this month: P60 billion via weekly offers of Treasury bills and P140 billion from weekly auctions of T-bonds.
\nThe government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. \u2014 B.M. Laforga
\n", "content_text": "YIELDS ON government securities on offer this week will likely end mixed on concerns over rising inflation and looming rate hikes.\nThe Bureau of the Treasury (BTr) will offer P15 billion in Treasury bills (T-bills) on Monday, broken down into P5 billion each in 91-, 182- and 364-day debt papers.\nOn Tuesday, it will auction off reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and 10 months.\nTwo bond traders said T-bill rates will continue to move sideways this week as investors are looking to put their excess liquidity in these short-term safe-haven instruments.\nHowever, for the longer-tenored T-bonds, the traders expect its yield to shoot up on fears of rising inflation and possible policy tightening by the US central bank.\nThe first trader said the average rate of the seven-year bonds on offer on Tuesday could range from 4.050% to 4.2%, while the second trader gave a higher estimate range of 4.15-4.3%.\n\u201cTraders will be watching inflation for the previous month since the BSP (Bangko Sentral ng Pilipinas) may consider raising interest rates sooner if inflation remains elevated. Also, some [US Federal Reserve] officials think that tapering of bond purchases based on economic data may be warranted as soon as November,\u201d the second bond trader said via Viber on Saturday.\nA 大象传媒 poll of 17 analysts yielded a median estimate of 5% for September headline inflation, closer to the upper end of the central bank\u2019s 4.8%-5.6% estimate for the month and above its 2-4% target for the year. If realized, this will be faster than the 4.9% in August as well as the 2.4% a year earlier. It will also be the quickest print since the 5.1% in December 2018.\nAnalysts said higher food and utility prices as well as base effects likely caused a continued uptrend in inflation last month.\nThe Philippine Statistics Authority will report September inflation data on Tuesday, Oct. 5.\nMeanwhile, the Fed earlier said it could hike rates as early as next year as it could taper its monthly bond purchases by November, Reuters reported.\n\u201cThe local bond market will also price in the rally in global oil prices and the standoff in raising US debt ceiling [last] week,\u201d the first trader added.\nOil prices reached nearly $80 per barrel due to depleting stockpiles as oil producers struggled to keep up with the rising demand amid a global economic recovery.\nMeanwhile, Reuters reported that investors are getting more nervous over the looming fiscal crisis if the US Congress will not decide whether the debt ceiling has to be raised or not to avoid a possible government shutdown and its first-ever default.\nThe BTr last week upsized the volume of T-bills it awarded to P17 billion as total tenders reached P63.865 billion.\nBroken down, it raised P5 billion as planned from the 91-day debt papers at an average rate of 1.06%, up from 1.07% the week prior.\nIt also awarded P5 billion as programmed in 182-day T-bills as its average yield fell to 1.385% from 1.389% previously.\nLastly, the BTr borrowed P7 billion via the 364-day securities, higher than the P5-billion plan, at an average rate of 1.582%, down from 1.597% the previous week.\nMeanwhile, the last time the Treasury offered the seven-year bonds was on Sept. 21, when it made a full P35-billion award of the reissued papers and raised another P5 billion via the tap facility. The bonds attracted P76.128 billion in bids while its average rate climbed to 3.826% from the 3.789% seen in the previous auction.\nAt the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.13%, 1.393% and 1.663%, respectively, while the seven-year tenor fetched 3.899%, according to the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System\u2019s website.\nThe BTr is looking to raise P200 billion from the local market this month: P60 billion via weekly offers of Treasury bills and P140 billion from weekly auctions of T-bonds.\nThe government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. \u2014 B.M. Laforga", "date_published": "2021-10-04T00:04:15+08:00", "date_modified": "2021-10-03T17:49:52+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/BTr-Treasury-720p-3.jpg", "tags": [ "Beatrice M. Laforga", "Banking & Finance", "Editors' Picks" ], "summary": "YIELDS ON government securities on offer this week will likely end mixed on concerns over rising inflation and looming rate hikes." }, { "id": "/?p=400808", "url": "/economy/2021/10/03/400808/crop-insurance-agency-ordered-to-report-financial-condition-by-oct-7/", "title": "Crop insurance agency ordered to report financial condition by Oct. 7", "content_html": "FINANCE Secretary Carlos G. Dominguez III ordered the Philippine Crop Insurance Corp. (PCIC) to report on its financial condition and assess its contingent liabilities to the corporation\u2019s newly-reorganized board on Oct. 7.
\nIn a statement Sunday, Mr. Dominguez, the PCIC\u2019s chairman, said he ordered the reports to help determine how the company will be managed under its reorganized board, as well as assess proposals for it to purchase reinsurance.
\nMr. Dominguez is also expecting the PCIC to present its plans for expanding coverage to more crops, and exploring parametric insurance, which pays out based on the intensity of a trigger event.
\nThe PCIC board conducted its first meeting late last month, and named coverage expansion its main priority, along with addressing the firm\u2019s \u201cunsustainable\u201d finances.
\nMr. Dominguez has said that the company relies heavily on subsidies and is due to receive P4.5 billion next year.
\nIn a May 7 report, the Insurance Commission (IC) recommended that the PCIC review its overall risk management program by tapping reinsurance as a means of risk transfer.
\nThe IC flagged the insurer\u2019s vulnerability in the event of a major calamity.
\n\u201cIf the PCIC will continue this practice, the government is expected to infuse more capital for it to survive should there be large-scale losses which will affect most of its insured,\u201d the regulator said in its report, which was made available to the public on Friday.
\nA separate study conducted by the Bureau of the Treasury (BTr) indicated that the PCIC has racked up operating costs in the last five years of P536.44 million.
\nExpenses for personnel services and maintenance and other operating expenses reported an average growth of 8% and 24%, respectively.
\n\u201cFor every peso income it generated (before subsidy), it is already spending an average of P0.71 (excluding direct costs and financial and non-cash expenses). Further, as compared to GSIS (Government Service Insurance System) and SSS (Social Security System) operating cost over its total expenses of 5%, PCIC is high at 15%,\u201d the BTr said.
\nPresident\u00a0Rodrigo R. Duterte signed Executive Order No. 148 on Sept. 14, which transferred oversight of the PCIC to the Department of Finance. \u2014 Beatrice M. Laforga
\n", "content_text": "FINANCE Secretary Carlos G. Dominguez III ordered the Philippine Crop Insurance Corp. (PCIC) to report on its financial condition and assess its contingent liabilities to the corporation\u2019s newly-reorganized board on Oct. 7.\nIn a statement Sunday, Mr. Dominguez, the PCIC\u2019s chairman, said he ordered the reports to help determine how the company will be managed under its reorganized board, as well as assess proposals for it to purchase reinsurance.\nMr. Dominguez is also expecting the PCIC to present its plans for expanding coverage to more crops, and exploring parametric insurance, which pays out based on the intensity of a trigger event.\nThe PCIC board conducted its first meeting late last month, and named coverage expansion its main priority, along with addressing the firm\u2019s \u201cunsustainable\u201d finances.\nMr. Dominguez has said that the company relies heavily on subsidies and is due to receive P4.5 billion next year.\nIn a May 7 report, the Insurance Commission (IC) recommended that the PCIC review its overall risk management program by tapping reinsurance as a means of risk transfer.\nThe IC flagged the insurer\u2019s vulnerability in the event of a major calamity.\n\u201cIf the PCIC will continue this practice, the government is expected to infuse more capital for it to survive should there be large-scale losses which will affect most of its insured,\u201d the regulator said in its report, which was made available to the public on Friday.\nA separate study conducted by the Bureau of the Treasury (BTr) indicated that the PCIC has racked up operating costs in the last five years of P536.44 million.\nExpenses for personnel services and maintenance and other operating expenses reported an average growth of 8% and 24%, respectively.\n\u201cFor every peso income it generated (before subsidy), it is already spending an average of P0.71 (excluding direct costs and financial and non-cash expenses). Further, as compared to GSIS (Government Service Insurance System) and SSS (Social Security System) operating cost over its total expenses of 5%, PCIC is high at 15%,\u201d the BTr said.\nPresident\u00a0Rodrigo R. Duterte signed Executive Order No. 148 on Sept. 14, which transferred oversight of the PCIC to the Department of Finance. \u2014 Beatrice M. Laforga", "date_published": "2021-10-03T19:17:38+08:00", "date_modified": "2021-10-03T19:17:38+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/10/Fall-Armyworm.jpg", "tags": [ "Beatrice M. Laforga", "Economy" ], "summary": "FINANCE Secretary Carlos G. Dominguez III ordered the Philippine Crop Insurance Corp. (PCIC) to report on its financial condition and assess its contingent liabilities to the corporation\u2019s newly-reorganized board on Oct. 7." }, { "id": "/?p=400807", "url": "/economy/2021/10/03/400807/boc-investigating-possible-misdeclaration-of-palm-oil-imports/", "title": "BoC investigating possible misdeclaration of palm oil imports", "content_html": "THE Bureau of Customs (BoC) has begun looking into palm oil imports in response to concerns expressed by the coconut industry of rampant misdeclaration to avoid taxes.
\n\u201cThe Philippine Coconut Authority (PCA), through the DTI (Department of Trade and Industry) and Bureau of Plant Industry (BPI), flagged several issues that might need an audit of palm (oil) importers. We have a vibrant coconut industry and one of the things I think they feel might be affecting them is the importation of palm oil either as a finished product or as a feed-grade material,\u201d Vincent Philip C. Maronilla, the Customs assistant commissioner who heads the Post Clearance Audit Group (PCAG), told 大象传媒 by phone Friday.
\nHe said the PCAG started issuing audit notification letters (ANLs) to 13 companies last month signifying its intent to investigate one year\u2019s worth of financial reports to detect potential tax leakages from the industry. He also endorsed more ANLs to the Customs Commissioner for consideration.
\n\u201cWe will extend that to three years if we find issue,\u201d he added.
\nThe PCAG will be looking at instances of deliberate misclassification of palm oil products from food grade to feed grade to avoid paying value-added tax (VAT).
\nHe gave no estimate of the taxes potentially foregone by the government \u201cbut it would be substantial if we\u2019re able to prove that there\u2019s an excess of imports as against the permits issued by the DA (Department of Agriculture) or there has been misclassification of products from a food-grade quality to feed-grade quality, because that would mean value-added taxes were not paid because feed-grade palm oils are exempt from VAT,\u201d Mr. Maronilla said.
\nA PCAG investigation last year found that the government lost P1.4 billion in potential revenue due to the undervaluation of rice imports.
\nMr. Maronilla said Customs is also considering other agriculture products like meat for post-clearance audits, after an Executive Order (EO) issued in May reduced tariffs and allowed more imports to come in at favorable rates. He said the audit may start in mid-2022 once the one-year validity of the EO expires.
\n\u201cImporters of MDM (mechanically deboned meat) mostly paid voluntarily. We did not see a lot of issues when it came to value and classifications\u2026 Given the EO, we\u2019ll wait for the period to end before we do a one-year audit. We want to give it a chance to be implemented fully without\u2026 a post-clearance audit conducted (in the middle of implementation,)\u201d he said.
\nThe BoC is the second-biggest revenue generating agency, next to the Bureau of Internal Revenue.
\n\u201cWe\u2019re on track with our collections\u2026 I hope that we\u2019ll be able to sustain that momentum and not just meet the collection target for 2021 again. We met it in 2020, but (hope to) collect a little bit more to help the government with its finances,\u201d he said.
\nThe BoC collected P59.9 billion in September, surpassing its P56.9-billion target by 5.3%.
\nThis brought its nine-month total to P472.204 billion, or 76.6% of its target for 2021. \u2014 Beatrice M. Laforga
\n", "content_text": "THE Bureau of Customs (BoC) has begun looking into palm oil imports in response to concerns expressed by the coconut industry of rampant misdeclaration to avoid taxes.\n\u201cThe Philippine Coconut Authority (PCA), through the DTI (Department of Trade and Industry) and Bureau of Plant Industry (BPI), flagged several issues that might need an audit of palm (oil) importers. We have a vibrant coconut industry and one of the things I think they feel might be affecting them is the importation of palm oil either as a finished product or as a feed-grade material,\u201d Vincent Philip C. Maronilla, the Customs assistant commissioner who heads the Post Clearance Audit Group (PCAG), told 大象传媒 by phone Friday.\nHe said the PCAG started issuing audit notification letters (ANLs) to 13 companies last month signifying its intent to investigate one year\u2019s worth of financial reports to detect potential tax leakages from the industry. He also endorsed more ANLs to the Customs Commissioner for consideration.\n\u201cWe will extend that to three years if we find issue,\u201d he added.\nThe PCAG will be looking at instances of deliberate misclassification of palm oil products from food grade to feed grade to avoid paying value-added tax (VAT).\nHe gave no estimate of the taxes potentially foregone by the government \u201cbut it would be substantial if we\u2019re able to prove that there\u2019s an excess of imports as against the permits issued by the DA (Department of Agriculture) or there has been misclassification of products from a food-grade quality to feed-grade quality, because that would mean value-added taxes were not paid because feed-grade palm oils are exempt from VAT,\u201d Mr. Maronilla said.\nA PCAG investigation last year found that the government lost P1.4 billion in potential revenue due to the undervaluation of rice imports.\nMr. Maronilla said Customs is also considering other agriculture products like meat for post-clearance audits, after an Executive Order (EO) issued in May reduced tariffs and allowed more imports to come in at favorable rates. He said the audit may start in mid-2022 once the one-year validity of the EO expires.\n\u201cImporters of MDM (mechanically deboned meat) mostly paid voluntarily. We did not see a lot of issues when it came to value and classifications\u2026 Given the EO, we\u2019ll wait for the period to end before we do a one-year audit. We want to give it a chance to be implemented fully without\u2026 a post-clearance audit conducted (in the middle of implementation,)\u201d he said.\nThe BoC is the second-biggest revenue generating agency, next to the Bureau of Internal Revenue.\n\u201cWe\u2019re on track with our collections\u2026 I hope that we\u2019ll be able to sustain that momentum and not just meet the collection target for 2021 again. We met it in 2020, but (hope to) collect a little bit more to help the government with its finances,\u201d he said.\nThe BoC collected P59.9 billion in September, surpassing its P56.9-billion target by 5.3%.\nThis brought its nine-month total to P472.204 billion, or 76.6% of its target for 2021. \u2014 Beatrice M. Laforga", "date_published": "2021-10-03T19:16:13+08:00", "date_modified": "2021-10-03T19:16:13+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/10/nz_palmoil.jpg", "tags": [ "Beatrice M. Laforga", "Economy" ], "summary": "THE Bureau of Customs (BoC) has begun looking into palm oil imports in response to concerns expressed by the coconut industry of rampant misdeclaration to avoid taxes." }, { "id": "/?p=400351", "url": "/top-stories/2021/10/01/400351/psa-work-quality-improved-amid-rising-joblessness/", "title": "PSA: Work quality improved amid rising joblessness", "content_html": "MORE FILIPINOS went jobless in August even as people forced to work in low-paying or low-skill jobs declined, according to the local statistics agency.
\nThe unemployment rate quickened to 8.1% \u2014 the worst in four months \u2014 from 6.9% in July, data from the Philippine Statistics Authority (PSA) released on Thursday showed. There were 3.882 million unemployed Filipinos in August, up from 3.073 million a month earlier.
\nThe agency blamed increased joblessness to lockdowns spurred by a fresh surge in coronavirus infections that month.
\n![\"Philippine](\"https://live.staticflickr.com/65535/51535990954_639c633697_o.jpg\")
On the other hand, the quality of available jobs improved as the underemployment rate \u2014 the ratio of those already working but still looking for more work or longer job hours \u2014 slowed to 14.7% from 20.9% in July. Underemployed Filipinos fell to 6.482 million from 8.692 million a month earlier.
\nWorkers increased to 48.116 million in August from 44.74 million in July, bringing the labor force participation rate to 63.6% of the working age population. The rate was 59.8% in July.
\nThe employment rate fell to 91.9% in August from 93.1% a month earlier. Employed workers, however, rose to 44.234 million from 41.667 million.
\nJob net gains of 2.6 million were surprising given the hard lockdowns in certain areas that month, said Geoffrey M. Ducanes, an economist from the Ateneo de Manila University.
\n\u201cFrom July to August, according to the PSA data, about 3.4 million people were added to the labor force,\u201d he said in an e-mail. \u201cThis still means that most of those who joined the labor force in August were able to find employment.\u201d
\nHe also noted that while underemployment declined, people who worked for fewer than 40 hours rose by 3.4 million.
\n\u201cThe reason why the underemployment rate went down is that fewer people expressed a desire to work more hours or to shift to a job with more hours,\u201d Mr. Ducanes said. \u201cThis is likely because they did not think any such job was obtainable given the lockdown and poor economic conditions since the second quarter last year.\u201d
\n\u201cIn other words, it is not because job quality improved,\u201d he added.
\nServices and industry made up 56% and 18.9% of total employment in August, down from 57.9% and 20% in July. The agriculture sector\u2019s job share rose to 25.1% from 22.1%.
\nAmong subsectors, agriculture and forestry had the largest net increase in employment on a monthly basis with about 1.78 million, followed by wholesale and retail trade with 992,480 and manufacturing with 169,200.
\nEducation had the largest drop (237,801), followed by administrative and support service activities (183,330) and professional, scientific and technical activities (110,173).
\nThe labor market improved \u201cas the government and the people learn to better manage the risks brought about by the COVID-19 pandemic, despite the heightened quarantine level and the spread of the Delta variant,\u201d Socioeconomic Planning Secretary Karl Kendrick T. Chua, Finance Secretary Carlos G. Dominguez III and Budget officer-in-charge Tina Rose Marie L. Canda said in a joint statement.
\n\u201cWhile the unemployment rate slightly increased, net job creation was significant and the underemployment rate decreased substantially,\u201d they said.
\nWhile August joblessness worsened as more Filipinos re-entered the labor force, jobs also increased by 2.6 million \u2014 1.7 million more than net gains before the pandemic hit, they added.
\n\u2018OVERALL QUALITY\u2019
\nMr. Ducanes said the quality of jobs had actually declined despite gains in underemployment.
He noted that three-quarters of new jobs were in agriculture \u2014 the least productive sector. On the other hand, the share of managerial jobs fell to 7.5% of total employment in August from 8.4% a month earlier.
\nThe share of professionals also fell to 4.6% from 5.6%, while that of technicians and associate professionals went down to 3.7% from 4.7%.\u00a0 \u201cMost of the increase in jobs were in elementary occupations (29.8% from 27.2%) and agricultural occupations (12.9% from 11.8%),\u201d Mr. Ducanes said.
\nBy worker class, the share of wage and salary jobs in August declined to 61.6% from 67.1% in July, while that of employer jobs fell to 2.3% from 3%.
\nOn the other hand, the share of own-account workers rose to 28.6% from 26% while unpaid family work accounted for 7.4% of the total, up from 3.9% in July. \u201cSo there were more jobs, but the overall quality of the jobs declined.\u201d
\nMr. Ducanes said the uncertainty surrounding the Delta coronavirus variant and the state of the global economy make it hard to predict where the country\u2019s labor market is heading.
\nThe economist added that while granular lockdowns could ease disruptions in the job market by reducing the uncertainty among business owners, this would not be enough.
\nThe government started enforcing targeted lockdowns in Metro Manila to minimize the effects on the economy.
\nThis could improve local job conditions said Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc.
\n\u201cIt may not immediately improve to pre-pandemic points, but the granular lockdowns and higher vaccination rates will play a huge role in a better labor market outlook in September and the rest of the year,\u201d he said in an e-mail.
\nLabor market figures might improve slightly September, said Nicholas Antonio T. Mapa, a senior economist at ING Bank N.V. Manila.
\n\u201cWe could see unemployment dip while underemployment will likely rise with mobility curbs and the overall downbeat economic outlook capping labor hours and wages,\u201d he said in a statement.
\n\u201cAs the recession drags on for yet another month, we can expect the previous guidance from the National Economic and Development Authority to hold, with unemployment to stay between 7-9% over the next two years,\u201d he said.
\n\u201cBusiness closures due to the protracted downturn and rising borrowing costs will likely limit the ability of the economy to provide enough job opportunities in the near term,\u201d he added.
\nGovernment economic managers expect the economy to go back to pre-pandemic growth levels by the end of 2022 or early 2023. \u2013 Bernadette Therese M. Gadon and Beatrice M. Laforga
\n", "content_text": "MORE FILIPINOS went jobless in August even as people forced to work in low-paying or low-skill jobs declined, according to the local statistics agency.\nThe unemployment rate quickened to 8.1% \u2014 the worst in four months \u2014 from 6.9% in July, data from the Philippine Statistics Authority (PSA) released on Thursday showed. There were 3.882 million unemployed Filipinos in August, up from 3.073 million a month earlier.\nThe agency blamed increased joblessness to lockdowns spurred by a fresh surge in coronavirus infections that month.\n\nOn the other hand, the quality of available jobs improved as the underemployment rate \u2014 the ratio of those already working but still looking for more work or longer job hours \u2014 slowed to 14.7% from 20.9% in July. Underemployed Filipinos fell to 6.482 million from 8.692 million a month earlier.\nWorkers increased to 48.116 million in August from 44.74 million in July, bringing the labor force participation rate to 63.6% of the working age population. The rate was 59.8% in July.\nThe employment rate fell to 91.9% in August from 93.1% a month earlier. Employed workers, however, rose to 44.234 million from 41.667 million.\nJob net gains of 2.6 million were surprising given the hard lockdowns in certain areas that month, said Geoffrey M. Ducanes, an economist from the Ateneo de Manila University.\n\u201cFrom July to August, according to the PSA data, about 3.4 million people were added to the labor force,\u201d he said in an e-mail. \u201cThis still means that most of those who joined the labor force in August were able to find employment.\u201d\nHe also noted that while underemployment declined, people who worked for fewer than 40 hours rose by 3.4 million.\n\u201cThe reason why the underemployment rate went down is that fewer people expressed a desire to work more hours or to shift to a job with more hours,\u201d Mr. Ducanes said. \u201cThis is likely because they did not think any such job was obtainable given the lockdown and poor economic conditions since the second quarter last year.\u201d\n\u201cIn other words, it is not because job quality improved,\u201d he added.\nServices and industry made up 56% and 18.9% of total employment in August, down from 57.9% and 20% in July. The agriculture sector\u2019s job share rose to 25.1% from 22.1%.\nAmong subsectors, agriculture and forestry had the largest net increase in employment on a monthly basis with about 1.78 million, followed by wholesale and retail trade with 992,480 and manufacturing with 169,200.\nEducation had the largest drop (237,801), followed by administrative and support service activities (183,330) and professional, scientific and technical activities (110,173).\nThe labor market improved \u201cas the government and the people learn to better manage the risks brought about by the COVID-19 pandemic, despite the heightened quarantine level and the spread of the Delta variant,\u201d Socioeconomic Planning Secretary Karl Kendrick T. Chua, Finance Secretary Carlos G. Dominguez III and Budget officer-in-charge Tina Rose Marie L. Canda said in a joint statement.\n\u201cWhile the unemployment rate slightly increased, net job creation was significant and the underemployment rate decreased substantially,\u201d they said.\nWhile August joblessness worsened as more Filipinos re-entered the labor force, jobs also increased by 2.6 million \u2014 1.7 million more than net gains before the pandemic hit, they added.\n\u2018OVERALL QUALITY\u2019\nMr. Ducanes said the quality of jobs had actually declined despite gains in underemployment.\nHe noted that three-quarters of new jobs were in agriculture \u2014 the least productive sector. On the other hand, the share of managerial jobs fell to 7.5% of total employment in August from 8.4% a month earlier.\nThe share of professionals also fell to 4.6% from 5.6%, while that of technicians and associate professionals went down to 3.7% from 4.7%.\u00a0 \u201cMost of the increase in jobs were in elementary occupations (29.8% from 27.2%) and agricultural occupations (12.9% from 11.8%),\u201d Mr. Ducanes said.\nBy worker class, the share of wage and salary jobs in August declined to 61.6% from 67.1% in July, while that of employer jobs fell to 2.3% from 3%.\nOn the other hand, the share of own-account workers rose to 28.6% from 26% while unpaid family work accounted for 7.4% of the total, up from 3.9% in July. \u201cSo there were more jobs, but the overall quality of the jobs declined.\u201d\nMr. Ducanes said the uncertainty surrounding the Delta coronavirus variant and the state of the global economy make it hard to predict where the country\u2019s labor market is heading.\nThe economist added that while granular lockdowns could ease disruptions in the job market by reducing the uncertainty among business owners, this would not be enough.\nThe government started enforcing targeted lockdowns in Metro Manila to minimize the effects on the economy.\nThis could improve local job conditions said Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc.\n\u201cIt may not immediately improve to pre-pandemic points, but the granular lockdowns and higher vaccination rates will play a huge role in a better labor market outlook in September and the rest of the year,\u201d he said in an e-mail.\nLabor market figures might improve slightly September, said Nicholas Antonio T. Mapa, a senior economist at ING Bank N.V. Manila.\n\u201cWe could see unemployment dip while underemployment will likely rise with mobility curbs and the overall downbeat economic outlook capping labor hours and wages,\u201d he said in a statement.\n\u201cAs the recession drags on for yet another month, we can expect the previous guidance from the National Economic and Development Authority to hold, with unemployment to stay between 7-9% over the next two years,\u201d he said.\n\u201cBusiness closures due to the protracted downturn and rising borrowing costs will likely limit the ability of the economy to provide enough job opportunities in the near term,\u201d he added.\nGovernment economic managers expect the economy to go back to pre-pandemic growth levels by the end of 2022 or early 2023. \u2013 Bernadette Therese M. Gadon and Beatrice M. Laforga", "date_published": "2021-10-01T00:33:34+08:00", "date_modified": "2021-09-30T21:55:37+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/infra-construction-worker.jpg", "tags": [ "Beatrice M. Laforga", "Bernadette Therese M. Gadon", "Featured2", "Editors' Picks", "大象传媒" ], "summary": "MORE FILIPINOS went jobless in August even as people forced to work in low-paying or low-skill jobs declined, according to the local statistics agency." }, { "id": "/?p=400350", "url": "/top-stories/2021/10/01/400350/philippines-eyes-500-million-disaster-loan-from-world-bank/", "title": "Philippines eyes $500-million disaster loan from World Bank", "content_html": "THE PHILIPPINE government has tapped the World Bank for a $500-million loan to boost the country\u2019s resilience against natural disasters and help it contain a coronavirus pandemic.
\nA World Bank document showed the proposed loan program will be its fourth for the government\u2019s disaster risk management initiatives that allows a so-called deferred drawdown option.
\nUnder the plan, funds are only released when a disaster strikes or a national calamity is declared to help with rehabilitation efforts, Finance Undersecretary Mark Dennis Y.C. Joven said in a text message on Thursday.
\nThe multilateral bank\u2019s board is expected to act on the proposal on Nov. 16.
\n\u201cThe development objective is to strengthen the government of the Philippines\u2019 institutional and financial capacity to manage risks from climate change, natural disasters and disease outbreaks,\u201d it said.
\nThe program is also expected to help with the state\u2019s poverty reduction efforts. About a million poor Filipinos are affected by natural calamities each year, according to World Bank estimates.
\n\u201cMany of them reside in disaster-prone provinces on the eastern edge of the country and are also working in the agriculture and fishery sectors, which are highly vulnerable to climate change and natural disasters,\u201d it said. \u201cThe COVID-19 pandemic has worsened the situation.\u201d
\nThe loan will support programs that institutionalize disaster recovery plans for local communities to fast-track rehabilitation, improve disaster risk management information drive and include climate change impacts on investment planning.
\nThis will ensure that local governments have rehabilitation plans in place when they tap the disaster fund to hasten recovery efforts and ease the impact of natural disasters on communities, especially poor households.
\n\u201cImproved availability, access and use of baseline data are also expected to help the affected communities to be better prepared and resilient from these shocks,\u201d it said.
\nWhile the government has \u201cestablished a good track record of delivering results,\u201d the World Bank said there are risks to the program. A prolonged coronavirus pandemic could delay economic rebound and worsen fiscal space further, it pointed out.
\nThe lender also warned of substantial political and governance risks despite efforts to roll out reforms to improve the country\u2019s disaster resilience in the past decade.
\n\u201cThe national and local elections in May 2022 may slow down the pace of implementation of policy reforms proposed under this [loan program],\u201d it said.
\nThe World Bank said the country remained highly vulnerable to natural disasters, making it the ninth most-exposed nation in the world to extreme typhoons.
\nIt said 60% of the country\u2019s total land area and 74% of Filipinos are exposed to risks from natural hazards such as typhoons, earthquakes, floods, tsunamis, volcanic eruptions and landslides, which have been worsened by climate change.
\nMr. Joven said the government had taken out three similar credit lines from the World Bank, the last one in April 2020 worth $500 million.
\nThe first two loans for disaster resilience were issued in September 2011 and in December 2015 worth $500 million each. \u2014 Beatrice M. Laforga
\n", "content_text": "THE PHILIPPINE government has tapped the World Bank for a $500-million loan to boost the country\u2019s resilience against natural disasters and help it contain a coronavirus pandemic.\nA World Bank document showed the proposed loan program will be its fourth for the government\u2019s disaster risk management initiatives that allows a so-called deferred drawdown option.\nUnder the plan, funds are only released when a disaster strikes or a national calamity is declared to help with rehabilitation efforts, Finance Undersecretary Mark Dennis Y.C. Joven said in a text message on Thursday.\nThe multilateral bank\u2019s board is expected to act on the proposal on Nov. 16.\n\u201cThe development objective is to strengthen the government of the Philippines\u2019 institutional and financial capacity to manage risks from climate change, natural disasters and disease outbreaks,\u201d it said.\nThe program is also expected to help with the state\u2019s poverty reduction efforts. About a million poor Filipinos are affected by natural calamities each year, according to World Bank estimates.\n\u201cMany of them reside in disaster-prone provinces on the eastern edge of the country and are also working in the agriculture and fishery sectors, which are highly vulnerable to climate change and natural disasters,\u201d it said. \u201cThe COVID-19 pandemic has worsened the situation.\u201d\nThe loan will support programs that institutionalize disaster recovery plans for local communities to fast-track rehabilitation, improve disaster risk management information drive and include climate change impacts on investment planning.\nThis will ensure that local governments have rehabilitation plans in place when they tap the disaster fund to hasten recovery efforts and ease the impact of natural disasters on communities, especially poor households.\n\u201cImproved availability, access and use of baseline data are also expected to help the affected communities to be better prepared and resilient from these shocks,\u201d it said.\nWhile the government has \u201cestablished a good track record of delivering results,\u201d the World Bank said there are risks to the program. A prolonged coronavirus pandemic could delay economic rebound and worsen fiscal space further, it pointed out.\nThe lender also warned of substantial political and governance risks despite efforts to roll out reforms to improve the country\u2019s disaster resilience in the past decade.\n\u201cThe national and local elections in May 2022 may slow down the pace of implementation of policy reforms proposed under this [loan program],\u201d it said.\nThe World Bank said the country remained highly vulnerable to natural disasters, making it the ninth most-exposed nation in the world to extreme typhoons.\nIt said 60% of the country\u2019s total land area and 74% of Filipinos are exposed to risks from natural hazards such as typhoons, earthquakes, floods, tsunamis, volcanic eruptions and landslides, which have been worsened by climate change.\nMr. Joven said the government had taken out three similar credit lines from the World Bank, the last one in April 2020 worth $500 million.\nThe first two loans for disaster resilience were issued in September 2011 and in December 2015 worth $500 million each. \u2014 Beatrice M. Laforga", "date_published": "2021-10-01T00:31:33+08:00", "date_modified": "2021-09-30T21:53:58+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/dollar-currency-1.jpg", "tags": [ "Beatrice M. Laforga", "大象传媒" ], "summary": "THE PHILIPPINE government has tapped the World Bank for a $500-million loan to boost the country\u2019s resilience against natural disasters and help it contain a coronavirus pandemic." }, { "id": "/?p=400232", "url": "/banking-finance/2021/10/01/400232/govt-to-borrow-less-from-local-market-this-month/", "title": "Gov\u2019t to borrow less from local market this month", "content_html": "![\"\"](\"/wp-content/uploads/2021/08/BTr-Treasury.jpg\")
THE GOVERNMENT is planning to borrow P200 billion from the local debt market this month, smaller than the volume seen in September and with shorter tenors to help stem rising yields.
\nIn an advisory posted on its website, the Bureau of the Treasury (BTr) said it will borrow P60 billion via Treasury bills (T-bills) and P140 billion from Treasury bonds (T-bonds) during its weekly offerings of government debt.
\nThe program is smaller than September\u2019s P250-billion borrowing plan, as well as the actual amount raised that month worth P264.95 billion \u2014 P185 billion via T-bonds, higher than its plan to raise P175 billion, and P77 billion from T-bills, more than the P75-billion program.
\nNational Treasurer Rosalia V. de Leon said October has fewer weeks than last month, resulting in a lower borrowing program.
\nThe BTr will auction off T-bills worth P15 billion every Monday, or P5 billion each in 91-, 182- and 364-day debt papers.
\nIt will also offer P35 billion in T-bonds every Tuesday. It will auction off seven-year notes on Oct. 5 and Oct. 26, five-year T-bonds on Oct. 12, and six-year securities on Oct. 19.
\nThe smaller borrowing program for this month could help temper rising bond yields, especially for the 10-year space, since there will be less supply, a bond trader said in a Viber message.
\n\u201cThe yields are really attractive at these levels because some parts of the curve are just few basis points away compared to the start of 2020 wherein there is less liquidity,\u201d the trader added.
\nThe government borrows from local and foreign sources to plug its budget deficit, which is seen hitting 9.3% of overall economic output this year, as it spends more than the revenues generated. It raises more funds from the local market to minimize foreign exchange risks.
\nThe Treasury is looking to raise P2.49 trillion from the domestic market this year and P581 billion from foreign lenders.
\nGross borrowings reached P2.27 trillion in the seven months to July, 81% of which or P1.83 trillion was raised via local creditors and the rest sourced offshore. \u2014 Beatrice M. Laforga
\n", "content_text": "THE TREASURY is looking to borrow P200 billion from domestic creditors in October. \u2014 BW FILE PHOTO\nTHE GOVERNMENT is planning to borrow P200 billion from the local debt market this month, smaller than the volume seen in September and with shorter tenors to help stem rising yields.\nIn an advisory posted on its website, the Bureau of the Treasury (BTr) said it will borrow P60 billion via Treasury bills (T-bills) and P140 billion from Treasury bonds (T-bonds) during its weekly offerings of government debt.\nThe program is smaller than September\u2019s P250-billion borrowing plan, as well as the actual amount raised that month worth P264.95 billion \u2014 P185 billion via T-bonds, higher than its plan to raise P175 billion, and P77 billion from T-bills, more than the P75-billion program.\nNational Treasurer Rosalia V. de Leon said October has fewer weeks than last month, resulting in a lower borrowing program.\nThe BTr will auction off T-bills worth P15 billion every Monday, or P5 billion each in 91-, 182- and 364-day debt papers.\nIt will also offer P35 billion in T-bonds every Tuesday. It will auction off seven-year notes on Oct. 5 and Oct. 26, five-year T-bonds on Oct. 12, and six-year securities on Oct. 19.\nThe smaller borrowing program for this month could help temper rising bond yields, especially for the 10-year space, since there will be less supply, a bond trader said in a Viber message.\n\u201cThe yields are really attractive at these levels because some parts of the curve are just few basis points away compared to the start of 2020 wherein there is less liquidity,\u201d the trader added.\nThe government borrows from local and foreign sources to plug its budget deficit, which is seen hitting 9.3% of overall economic output this year, as it spends more than the revenues generated. It raises more funds from the local market to minimize foreign exchange risks.\nThe Treasury is looking to raise P2.49 trillion from the domestic market this year and P581 billion from foreign lenders. \nGross borrowings reached P2.27 trillion in the seven months to July, 81% of which or P1.83 trillion was raised via local creditors and the rest sourced offshore. \u2014 Beatrice M. Laforga", "date_published": "2021-10-01T00:05:41+08:00", "date_modified": "2021-09-30T19:04:42+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/BTr-Treasury.jpg", "tags": [ "Beatrice M. Laforga", "Banking & Finance", "Editors' Picks" ], "summary": "THE GOVERNMENT is planning to borrow P200 billion from the local debt market this month, smaller than the volume seen in September and with shorter tenors to help stem rising yields." }, { "id": "/?p=400338", "url": "/economy/2021/09/30/400338/national-govt-debt-hits-p11-6-trillion-at-end-of-august/", "title": "National Gov\u2019t debt hits P11.6 trillion at end of August", "content_html": "THE National Government\u2019s outstanding debt rose to P11.64 trillion at the end of August, with the new lockdown compelling the government to borrow more from the debt market, the Bureau of the Treasury (BTr) said Thursday.
\nAccording to preliminary BTr data, the end-August debt level was up 0.28% from a month earlier. It was up 21% from a year earlier.
\nSince the start of the year, government debt rose 18.9% from the end of 2020. The government added P1.85 trillion in debt over the first eight months.
\nThe debt consisted of 70.6% in domestic borrowing and 29.4% borrowed overseas.
\nDomestic debt at the end of August rose 1.2% from the end of July to P8.22 trillion. Year on year, the domestic debt stock grew 22.5%.
\nThe BTr increased its borrowing last month, bringing outstanding government securities up 1.3% at P7.68 trillion.
\nThe government also has P540 billion from the central bank, which it borrowed last year to help fund its pandemic response.
\nExternal debt fell 2% at the end of August to P3.422 trillion compared to its level at the end of July following the repayment of foreign loans worth P34.22 billion.
\n\u201cThe impact of both local- and third-currency fluctuations against the dollar further lowered the peso value of external obligations by P32.04 billion and P2.39 billion, respectively,\u201d the Treasury said.
\nForeign debt at the end of August rose 18% from a year earlier. It has grown 10.4% since the start of the year.
\nForeign debt consisted of P1.47 trillion in loans and P2.02 trillion in government securities. The latter included P1.5 trillion in dollar notes, P241 billion in euro bonds, P138 billion in yen paper, P19 billion in yuan notes and P85 billion in peso global bonds.
\nThe government\u2019s overall guaranteed obligations fell 2.7% from a month earlier to P432.2 billion after it repaid P9.9 billion worth of domestic and foreign guarantees last month.
\n\u201cThe impact of local- and third-currency exchange rate fluctuations against the dollar further reduced external guarantees by P1.85 billion and P340 million, respectively,\u201d the Treasury said.
\nIncreased borrowing last month was attributed to the government\u2019s heightened spending needs after Metro Manila and other provinces reverted to stricter lockdown measures for two weeks in August, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a note Thursday.
\nThe government handed out P15 billion in emergency cash aid to residents of areas under strict quarantine.
\nMr. Ricafort said the recent policy shift to granular lockdowns starting September could help the economy reopen and increase tax collections, which could ease the need for borrowing.
\n\u201cHowever, this could be offset by the risk of relatively slower economic recovery from lockdowns… and any delays in the COVID-19 vaccine arrivals… (as this could) lead to relatively wider budget deficits that entail more government borrowing,\u201d he said. \u2014 Beatrice M. Laforga
\n", "content_text": "THE National Government\u2019s outstanding debt rose to P11.64 trillion at the end of August, with the new lockdown compelling the government to borrow more from the debt market, the Bureau of the Treasury (BTr) said Thursday.\nAccording to preliminary BTr data, the end-August debt level was up 0.28% from a month earlier. It was up 21% from a year earlier.\nSince the start of the year, government debt rose 18.9% from the end of 2020. The government added P1.85 trillion in debt over the first eight months.\nThe debt consisted of 70.6% in domestic borrowing and 29.4% borrowed overseas.\nDomestic debt at the end of August rose 1.2% from the end of July to P8.22 trillion. Year on year, the domestic debt stock grew 22.5%.\nThe BTr increased its borrowing last month, bringing outstanding government securities up 1.3% at P7.68 trillion.\nThe government also has P540 billion from the central bank, which it borrowed last year to help fund its pandemic response.\nExternal debt fell 2% at the end of August to P3.422 trillion compared to its level at the end of July following the repayment of foreign loans worth P34.22 billion.\n\u201cThe impact of both local- and third-currency fluctuations against the dollar further lowered the peso value of external obligations by P32.04 billion and P2.39 billion, respectively,\u201d the Treasury said.\nForeign debt at the end of August rose 18% from a year earlier. It has grown 10.4% since the start of the year.\nForeign debt consisted of P1.47 trillion in loans and P2.02 trillion in government securities. The latter included P1.5 trillion in dollar notes, P241 billion in euro bonds, P138 billion in yen paper, P19 billion in yuan notes and P85 billion in peso global bonds.\nThe government\u2019s overall guaranteed obligations fell 2.7% from a month earlier to P432.2 billion after it repaid P9.9 billion worth of domestic and foreign guarantees last month.\n\u201cThe impact of local- and third-currency exchange rate fluctuations against the dollar further reduced external guarantees by P1.85 billion and P340 million, respectively,\u201d the Treasury said.\nIncreased borrowing last month was attributed to the government\u2019s heightened spending needs after Metro Manila and other provinces reverted to stricter lockdown measures for two weeks in August, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a note Thursday.\nThe government handed out P15 billion in emergency cash aid to residents of areas under strict quarantine.\nMr. Ricafort said the recent policy shift to granular lockdowns starting September could help the economy reopen and increase tax collections, which could ease the need for borrowing.\n\u201cHowever, this could be offset by the risk of relatively slower economic recovery from lockdowns… and any delays in the COVID-19 vaccine arrivals… (as this could) lead to relatively wider budget deficits that entail more government borrowing,\u201d he said. \u2014 Beatrice M. Laforga", "date_published": "2021-09-30T21:03:56+08:00", "date_modified": "2021-09-30T21:08:14+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/Btr-Treasury.jpg", "tags": [ "Beatrice M. Laforga", "Featured2", "Economy", "Editors' Picks" ], "summary": "THE National Government\u2019s outstanding debt rose to P11.64 trillion at the end of August, with the new lockdown compelling the government to borrow more from the debt market, the Bureau of the Treasury (BTr) said Thursday." }, { "id": "/?p=400337", "url": "/economy/2021/09/30/400337/adb-partner-institutions-to-finance-sustainable-infrastructure/", "title": "ADB, partner institutions to finance sustainable infrastructure", "content_html": "THE Asian Development Bank (ADB) said it has teamed up with other institutions to set up a debt financing facility supporting sustainable infrastructure projects in Asia, beginning with Southeast Asia.
\nIn a statement Thursday, the bank said it partnered with HSBC Holdings, Singapore investment firm Temasek and Clifford Capital Holdings to establish the new platform that will provide concessional capital.
\n\u201cThe initiative aims to bridge the financing gap by helping countries develop bankable sustainable infrastructure projects based on global standards,\u201d the ADB said.
\nADB Vice-President Ahmed M. Saeed said the bank will extend technical assistance in project development and sector reforms, while working with its partners to promote the use of blended finance and other risk mitigation solutions to mobilize resources.
\nHSBC and Temasek will provide equity with a combined investment of up to $150 million in the initial stage, Reuters reported, while Clifford Capital Holdings will join the ADB as a strategic partner for the program.
\nThe ADB said the facility will first focus on clean transport, renewable energy and energy storage, and water and waste management infrastructure projects, before it explores other areas like climate adaptation, agriculture and land use, and technology-led solutions.
\nDeveloping Asia needs to invest $26 trillion or $1.7 trillion each year between 2016 and 2030 to sustain high economic growth, end poverty and address climate change. Southeast Asia remains one of the most exposed regions to climate change.
\nIt said the private sector could help plug the funding gap but 65% of infrastructure projects in the region are not considered bankable, while large upfront costs and long project preparation times are needed before these can be considered viable by creditors.
\n\u201cMarginally bankable projects typically face a range of barriers to accessing private sector finance. These may include a variety of capability, policy and economic issues which can impact a project\u2019s ability to attract commercial financing,\u201d it said. \u2014 Beatrice M. Laforga
\n", "content_text": "THE Asian Development Bank (ADB) said it has teamed up with other institutions to set up a debt financing facility supporting sustainable infrastructure projects in Asia, beginning with Southeast Asia.\nIn a statement Thursday, the bank said it partnered with HSBC Holdings, Singapore investment firm Temasek and Clifford Capital Holdings to establish the new platform that will provide concessional capital.\n\u201cThe initiative aims to bridge the financing gap by helping countries develop bankable sustainable infrastructure projects based on global standards,\u201d the ADB said.\nADB Vice-President Ahmed M. Saeed said the bank will extend technical assistance in project development and sector reforms, while working with its partners to promote the use of blended finance and other risk mitigation solutions to mobilize resources.\nHSBC and Temasek will provide equity with a combined investment of up to $150 million in the initial stage, Reuters reported, while Clifford Capital Holdings will join the ADB as a strategic partner for the program.\nThe ADB said the facility will first focus on clean transport, renewable energy and energy storage, and water and waste management infrastructure projects, before it explores other areas like climate adaptation, agriculture and land use, and technology-led solutions.\nDeveloping Asia needs to invest $26 trillion or $1.7 trillion each year between 2016 and 2030 to sustain high economic growth, end poverty and address climate change. Southeast Asia remains one of the most exposed regions to climate change.\nIt said the private sector could help plug the funding gap but 65% of infrastructure projects in the region are not considered bankable, while large upfront costs and long project preparation times are needed before these can be considered viable by creditors.\n\u201cMarginally bankable projects typically face a range of barriers to accessing private sector finance. These may include a variety of capability, policy and economic issues which can impact a project\u2019s ability to attract commercial financing,\u201d it said. \u2014 Beatrice M. Laforga", "date_published": "2021-09-30T21:03:30+08:00", "date_modified": "2021-09-30T21:07:51+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/ADB-1.jpg", "tags": [ "Beatrice M. Laforga", "Economy" ], "summary": "THE Asian Development Bank (ADB) said it has teamed up with other institutions to set up a debt financing facility supporting sustainable infrastructure projects in Asia, beginning with Southeast Asia." }, { "id": "/?p=400042", "url": "/top-stories/2021/09/30/400042/weak-consumption-likely-to-persist/", "title": "Weak consumption likely to persist", "content_html": "![\"\"](\"/wp-content/uploads/2021/09/mall-store-restaurant.jpg\")
By Beatrice M. Laforga, Reporter
\nCONSUMER SPENDING will likely remain muted this year as pent-up demand may not deliver the much-needed boost to the Philippine economy amid continued lockdown restrictions, ANZ Research said.
\nIn its latest Asia Economic Outlook, ANZ Research estimated household consumption will only pick up by 1.4% this year, a turnaround from the 7.9% drop in 2020, but still far from the pre-pandemic growth of 5.9% in 2019.
\n\u201cStrains from prolonged mobility restrictions are becoming evident in household and corporate behavior, impacting consumers\u2019 desire to spend. Any rebound in pent-up demand could be thus smaller than expected, weighing on longer-term growth prospects,\u201d it said.
\nPrivate consumption is a major growth driver for the economy contributing around three-fourths of gross domestic product (GDP) each year.
\nUnless consumer spending \u201cregains its pre-pandemic strength,\u201d ANZ Research said outlook for the Philippines will remain \u201csomber.\u201d The research firm is only seeing economic output to return to its pre-crisis level by the second half of 2022.
\nThe Philippines continues to report high numbers of coronavirus disease 2019 (COVID-19) cases, although granular lockdowns are now implemented to curb the spread.
\nThe unemployment rate stood at 7.7% in July, with many households dipping into their savings to stay afloat.
\n\u201cViewed together with weak bank lending and tighter credit standards, the magnitude of any anticipated pent-up demand that may unleash when the economy reopens is likely to have dwindled,\u201d it said.
\nBank lending continued to decline in July, falling by 0.7% year on year, marking eight consecutive months of decline.
\nEven with muted household spending, ANZ Research maintained its 4.2% growth forecast for the year, which is the low end of the government\u2019s 4-5% target.
\nPersistent weakness in demand will also help inflation ease to 4% by year\u2019s end, it added. This is still within the 2-4% target of the central bank.
\nThis was echoed by Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, who projected a modest 2.1% uptick in consumption for the entire year on grim labor market, high inflation and a less upbeat spending outlook based on the latest survey by the central bank.
\n\u201cHousehold savings have been on the decline, indicating that most households have struggled to keep up with necessary expenses and may have had to draw down on savings or set aside less for savings. Lower savings will impair households\u2019 propensity to make big-ticket investments all the more should interest rates be forced unceremoniously higher,\u201d he said in an e-mailed response on Wednesday.
\nMr. Mapa is projecting a slower 3.7% GDP expansion this year even as the Bangko Sentral ng Pilipinas (BSP) keeps policy rates at a record low to encourage bank lending.
\n\u201cIf BSP will be forced to withdraw this stimulus, we could see households and SMEs (small- and medium-sized enterprises) struggle further as they once more face the double challenge of navigating an environment of higher prices and rising borrowing costs,\u201d Mr. Mapa added.
\nGovernment spending, which accounts for 20% of GDP, will likely pick up the slack as it is projected to rise by 8.7% this year, albeit slower than last year\u2019s 10.5% rise, ANZ Research said.
\n\u201cFiscal policy will continue to play an important role in supporting economic recovery. A third stimulus package, on which the decision is yet to be reached, will be crucial. While it will entail a larger budget deficit, some respite from higher revenues is also expected,\u201d it said.
\nInvestments will likely expand by 16.4% this year, from the 34.4% drop in 2020, while exports and imports are both expected to grow by 6.4% and 10.4%, respectively.
\nFor next year, ANZ Research is seeing household consumption to pick up at 6.1% as the COVID-19 threat subsides.
\nThis is expected to drive Philippine GDP to a 6.2% growth in 2022, before slightly slowing down again in 2023 to 6%. Economic managers kept the 2022 growth goal at 7-9%.
\nTo support the economy\u2019s recovery, the research firm said the BSP will likely keep its key policy rates at its current record low of 2% until next year, before it delivers two rounds of rate hikes in March and September of 2023.
\n\u201cWe know from history how detrimental rate hikes can be with the 2018 super rate hike cycle of BSP all but knocking down 2019 GDP to its lowest reading in 4 years then,\u201d Mr. Mapa said.
\n", "content_text": "Consumer spending is likely to remain weak as many still avoid going out due to the high number of coronavirus cases. \u2014 PHOTO BY CATHY ROSE A. GARCIA\nBy Beatrice M. Laforga, Reporter\nCONSUMER SPENDING will likely remain muted this year as pent-up demand may not deliver the much-needed boost to the Philippine economy amid continued lockdown restrictions, ANZ Research said.\nIn its latest Asia Economic Outlook, ANZ Research estimated household consumption will only pick up by 1.4% this year, a turnaround from the 7.9% drop in 2020, but still far from the pre-pandemic growth of 5.9% in 2019.\n\u201cStrains from prolonged mobility restrictions are becoming evident in household and corporate behavior, impacting consumers\u2019 desire to spend. Any rebound in pent-up demand could be thus smaller than expected, weighing on longer-term growth prospects,\u201d it said.\nPrivate consumption is a major growth driver for the economy contributing around three-fourths of gross domestic product (GDP) each year.\nUnless consumer spending \u201cregains its pre-pandemic strength,\u201d ANZ Research said outlook for the Philippines will remain \u201csomber.\u201d The research firm is only seeing economic output to return to its pre-crisis level by the second half of 2022.\nThe Philippines continues to report high numbers of coronavirus disease 2019 (COVID-19) cases, although granular lockdowns are now implemented to curb the spread.\nThe unemployment rate stood at 7.7% in July, with many households dipping into their savings to stay afloat.\n\u201cViewed together with weak bank lending and tighter credit standards, the magnitude of any anticipated pent-up demand that may unleash when the economy reopens is likely to have dwindled,\u201d it said.\nBank lending continued to decline in July, falling by 0.7% year on year, marking eight consecutive months of decline.\nEven with muted household spending, ANZ Research maintained its 4.2% growth forecast for the year, which is the low end of the government\u2019s 4-5% target.\nPersistent weakness in demand will also help inflation ease to 4% by year\u2019s end, it added. This is still within the 2-4% target of the central bank.\nThis was echoed by Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, who projected a modest 2.1% uptick in consumption for the entire year on grim labor market, high inflation and a less upbeat spending outlook based on the latest survey by the central bank.\n\u201cHousehold savings have been on the decline, indicating that most households have struggled to keep up with necessary expenses and may have had to draw down on savings or set aside less for savings. Lower savings will impair households\u2019 propensity to make big-ticket investments all the more should interest rates be forced unceremoniously higher,\u201d he said in an e-mailed response on Wednesday.\nMr. Mapa is projecting a slower 3.7% GDP expansion this year even as the Bangko Sentral ng Pilipinas (BSP) keeps policy rates at a record low to encourage bank lending.\n\u201cIf BSP will be forced to withdraw this stimulus, we could see households and SMEs (small- and medium-sized enterprises) struggle further as they once more face the double challenge of navigating an environment of higher prices and rising borrowing costs,\u201d Mr. Mapa added.\nGovernment spending, which accounts for 20% of GDP, will likely pick up the slack as it is projected to rise by 8.7% this year, albeit slower than last year\u2019s 10.5% rise, ANZ Research said.\n\u201cFiscal policy will continue to play an important role in supporting economic recovery. A third stimulus package, on which the decision is yet to be reached, will be crucial. While it will entail a larger budget deficit, some respite from higher revenues is also expected,\u201d it said. \nInvestments will likely expand by 16.4% this year, from the 34.4% drop in 2020, while exports and imports are both expected to grow by 6.4% and 10.4%, respectively.\nFor next year, ANZ Research is seeing household consumption to pick up at 6.1% as the COVID-19 threat subsides.\nThis is expected to drive Philippine GDP to a 6.2% growth in 2022, before slightly slowing down again in 2023 to 6%. Economic managers kept the 2022 growth goal at 7-9%.\nTo support the economy\u2019s recovery, the research firm said the BSP will likely keep its key policy rates at its current record low of 2% until next year, before it delivers two rounds of rate hikes in March and September of 2023.\n\u201cWe know from history how detrimental rate hikes can be with the 2018 super rate hike cycle of BSP all but knocking down 2019 GDP to its lowest reading in 4 years then,\u201d Mr. Mapa said.", "date_published": "2021-09-30T00:34:38+08:00", "date_modified": "2021-09-29T21:34:50+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/mall-store-restaurant.jpg", "tags": [ "Beatrice M. Laforga", "Editors' Picks", "大象传媒" ], "summary": "CONSUMER SPENDING will likely remain muted this year as pent-up demand may not deliver the much-needed boost to the Philippine economy amid continued lockdown restrictions, ANZ Research said.\u00a0" }, { "id": "/?p=400020", "url": "/economy/2021/09/29/400020/dbm-releases-additional-p451-million-for-health-workers-risk-allowances/", "title": "DBM releases additional P451 million for health workers\u2019 risk allowances", "content_html": "THE DEPARTMENT of Budget and Management (DBM) has released an additional P451.3 million for the special risk allowances (SRA) of health workers assigned to coronavirus disease 2019 (COVID-19) wards.
\nThe DBM said in a statement Wednesday that P407.08 million was sourced from the contingent fund of the national budget, while the remaining P44.23 million was charged to the miscellaneous personnel benefits fund.
\nThe additional allowances will be given to eligible public and private healthcare workers who were either directly catering to or are in contact with COVID-19 patients between Dec. 20, 2020 and June 30, 2021.
\nThis brought the total SRA released to P8.23 billion so far, covering 499,117 health workers.
\nIn response to a 大象传媒 query, the DBM said P1.185 billion is awaiting approval from the Office of the President (OP), which could benefit 63,812 more frontliners.
\nThe DBM did not provide a timetable for the release of the funds awaiting OP approval.
\nThe DBM said it is releasing additional funds to provide the risk allowance to health workers who were not covered when the Bayanihan to Recover as One or Bayanihan II law expired on June 30.
\nUnder Bayanihan II, a special risk allowance of P5,000 per month was allotted for medical personnel assigned to facilities with COVID-19 patients, as well as a separate P3,000 monthly hazardous-duty allowance.
\nIn a budget hearing earlier this month, the Department of Health (DoH) said it proposed a P73.99-billion budget to the DBM for 2022 budget, including P50.4 billion in new funds to support allowances of healthcare workers. However, the DoH said the budget for allowances was slashed by the executive department. \u2014 Beatrice M. Laforga
\n", "content_text": "THE DEPARTMENT of Budget and Management (DBM) has released an additional P451.3 million for the special risk allowances (SRA) of health workers assigned to coronavirus disease 2019 (COVID-19) wards.\nThe DBM said in a statement Wednesday that P407.08 million was sourced from the contingent fund of the national budget, while the remaining P44.23 million was charged to the miscellaneous personnel benefits fund.\nThe additional allowances will be given to eligible public and private healthcare workers who were either directly catering to or are in contact with COVID-19 patients between Dec. 20, 2020 and June 30, 2021.\nThis brought the total SRA released to P8.23 billion so far, covering 499,117 health workers.\nIn response to a 大象传媒 query, the DBM said P1.185 billion is awaiting approval from the Office of the President (OP), which could benefit 63,812 more frontliners.\nThe DBM did not provide a timetable for the release of the funds awaiting OP approval.\nThe DBM said it is releasing additional funds to provide the risk allowance to health workers who were not covered when the Bayanihan to Recover as One or Bayanihan II law expired on June 30.\nUnder Bayanihan II, a special risk allowance of P5,000 per month was allotted for medical personnel assigned to facilities with COVID-19 patients, as well as a separate P3,000 monthly hazardous-duty allowance.\nIn a budget hearing earlier this month, the Department of Health (DoH) said it proposed a P73.99-billion budget to the DBM for 2022 budget, including P50.4 billion in new funds to support allowances of healthcare workers. However, the DoH said the budget for allowances was slashed by the executive department. \u2014 Beatrice M. Laforga", "date_published": "2021-09-29T21:09:03+08:00", "date_modified": "2021-09-29T21:09:03+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/health-workers-1.jpg", "tags": [ "Beatrice M. Laforga", "Featured2", "Economy", "Editors' Picks" ], "summary": "THE DEPARTMENT of Budget and Management (DBM) has released an additional P451.3 million for the special risk allowances (SRA) of health workers assigned to coronavirus disease 2019 (COVID-19) wards." }, { "id": "/?p=399732", "url": "/top-stories/2021/09/29/399732/delta-clouds-phl-growth-outlook/", "title": "Delta clouds PHL growth outlook", "content_html": "THE WORLD BANK on Tuesday cut its economic growth outlook for the Philippines once again to 4.3% this year as it estimates 60% of the population will be vaccinated against the coronavirus disease 2019 (COVID-19) by the second quarter of 2022.\u00a0 \u00a0
\nThe Delta-driven surge in infections and continued lockdown restrictions have constrained economic activity, further delaying the Philippine economy\u2019s return to pre-pandemic output to 2023 or later, the multilateral lender said in its East Asia and the Pacific (EAP) regional economic update report released on Tuesday.
\n\u201cThe uneven recovery in the EAP region is now facing a setback… While China, Indonesia, and Vietnam have already surpassed pre-pandemic levels of output, Cambodia, Malaysia, and Mongolia will only do so in 2022, and the Philippines, Thailand, and many Pacific Islands will remain below pre-pandemic levels of output even in 2023,\u201d the World Bank said in the report.
\nThe World Bank expects the Philippine gross domestic product (GDP) to grow by 4.3% this year, lower than its previous forecasts of 4.7% in June and 5.5% in April. This is also at the low end of the government\u2019s downgraded 4-5% target for this year.
\nIf realized, a 4.3% GDP growth would be a turnaround from the steep 9.6% slump in 2020, but is still lower than the pre-pandemic 6.1% expansion in 2019.
\nFor 2022, the World Bank trimmed its GDP growth projection to 5.8% from the 5.9% estimate in June and 6.3% in April. It also sees Philippine economic growth slowing to 5.5% in 2023.
\nThese latest projections are slightly below the government\u2019s targets of 7-9% growth in 2022 and 6-7% in 2023.
\nWorld Bank estimates also showed the Philippines and Indonesia are expected to fully inoculate 60% of their populations against COVID-19 by the second quarter of 2022.
\nAs of Sept. 26, the Philippines has fully vaccinated 18.3% of its population, according to Our World in Data\u2019s website. Despite the sluggish vaccine rollout, the Philippine government is keeping its target to administer COVID-19 vaccines to 70% of its population by end-2021.
\nOther Southeast Asian neighbors are expected to achieve 60% vaccination coverage earlier, such as Malaysia (third quarter of 2021), Thailand (fourth quarter of 2021) and Vietnam (first quarter of 2022).
\n\u201cThe Philippines had a problem of vaccine hesitancy; it had not acquired enough vaccines [and] it was a late entrant to the vaccine market. But the good news is, we project that the Philippines, by the middle of next year, will have a high level of coverage,\u201d Aaditya Mattoo, chief economist for the East Asia and Pacific region at the World Bank said at an online press briefing on Tuesday.
\n\u201c[However], we must not think of vaccines as a miracle, vaccines are one weapon in our arsenal which we will need to deal with COVID, [along with measures in] continuing precautionary behavior, stronger testing, and preparing the health system,\u201d he added.
\nThe World Bank also noted the sharp reduction in the Philippines\u2019 budget for social protection this year, which is estimated to only account for less than 1% of GDP.
\nEconomies with reduced spending for cash transfers and other financial assistance this year are also those that are expected to report the \u201cweakest recoveries,\u201d it said, identifying the Philippines, Myanmar and Timor-Leste.
\nThe World Bank estimated the government\u2019s budget shortfall to reach 7.6% of GDP by year\u2019s end, lower than the Philippines\u2019 official deficit ceiling of 9.3%.
\nThe World Bank also warned that up to eight million more people may be trapped in poverty in Indonesia and the Philippines until 2023, if policies addressing inequality are not put in place.
\nIncome shocks especially to poor families will have adverse long-term consequences as debts pile up and food insecurity affects children\u2019s development, it said. Learning losses from online schooling can also result in reduced future productivity for students.
\n\u201cThe adverse effects of the pandemic are likely to dampen long-term economic growth. In Indonesia, Mongolia, and the Philippines, firms lost on average at least 40% of their typical monthly sales and cut jobs… These negative effects on growth are likely to be stronger than any benefits of creative destruction induced by the crisis,\u201d it added.
\nTo boost growth, the multilateral bank said the country should focus on passing the pending bills that will ease restrictions on foreign investments.
\nMr. Mattoo said the country should also prioritize reforms that will strengthen its fiscal position and generate more funds to support infrastructure projects deemed as growth drivers.
\nThe Philippines should also focus on improving the educational sector, adoption of new technologies to develop the services sector and boost participation in manufacturing global value chains.
\n\u201cMore could be done, however, to broaden the scope and accelerate the pace of reform… The Philippines could do more to guarantee the rights of foreign investors and to simplify the complex and long negative list of still restricted sectors,\u201d the bank said. \u2014 B.M.Laforga
\n![\"Philippine](\"https://live.staticflickr.com/65535/51527768515_0509dde5a9_o.jpg\")
THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday even as its yield climbed due to concerns over rising inflation.
\nThe Bureau of the Treasury (BTr) raised P35 billion as planned via the reissued 10-year T-bonds it offered on Tuesday. The papers have a remaining life of nine years and nine months.
\nThe offering was more than twice oversubscribed, attracting P73.59 billion in tenders, bigger than the P61.83 billion in bids seen when the papers were last offered on Sept. 14.
\nThis caused the Treasury to open its tap facility to raise another P5 billion from the papers.
\nThe average yield on the 10-year bonds jumped by 44.3 basis points to 4.689% on Tuesday from the 4.246% fetched when the series was last offered.
\nThis was also higher than 4.363% fetched for the tenor at the secondary market prior to the auction, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System\u2019s website.
\nNational Treasurer Rosalia V. de Leon said the average rate of the papers offered on Tuesday tracked US Treasury yields after the Federal Reserve said it could start reducing its asset purchases by November.
\nThe rate of the benchmark 10-year papers went up to 1.48% on Monday from just 1.31% a week ago, based on US Department of the Treasury\u2019s website.
\nThe Fed, following its two-day policy meeting, last week said it could begin tapering its monthly bond purchases by November if jobs data will remain strong, Reuters reported.
\nInterest rate hikes may also begin next year once its bond-buying program ends, as nine of 18 Fed policy makers believe borrowing costs have to increase in 2022.
\nThe yield on the reissued 10-year bonds also rose due to higher inflation forecasts for 2021 and 2022 from the Bangko Sentral ng Pilipinas (BSP), Ms. De Leon said.
\nThe BSP last week hiked its inflation forecasts as supply issues continue to push food prices higher. It raised its outlook for this year to 4.4% from 4.1% previously. For next year, the BSP also hiked its forecast to 3.3% from 3.1%.
\nHeadline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years. This brought the eight-month average to 4.4%, above the central bank\u2019s 2-4% target for the year.
\nMeanwhile, a bond trader said the rate fetched for the T-bonds was within market expectations, given the Fed\u2019s hawkish hints and the BSP\u2019s inflation outlook.
\nThe trader added that the movement of bond rates will depend on the BTr\u2019s borrowing plan for October.
\n\u201cWe can expect it to go higher, especially if the BTr decides to continue with the same borrowing mix for October. If there will be no 10-year paper next month, then we are likely seeing the peak for this space,\u201d the trader said via Viber.
\nThe BTr has raised P262 billion from the local debt market this month, excluding the results of the tap facility offer on Tuesday. This is above the P250-billion program for the month after it opened the tap facility on several occasions.
\nBroken down, it borrowed P185 billion via T-bonds, higher than its plan to raise P175 billion. It also raised P77 billion from the short-term T-bills, slightly higher than the P75-billion program.
\nThe government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. \u2014 B.M. Laforga
\n", "content_text": "THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday even as its yield climbed due to concerns over rising inflation.\nThe Bureau of the Treasury (BTr) raised P35 billion as planned via the reissued 10-year T-bonds it offered on Tuesday. The papers have a remaining life of nine years and nine months.\nThe offering was more than twice oversubscribed, attracting P73.59 billion in tenders, bigger than the P61.83 billion in bids seen when the papers were last offered on Sept. 14.\nThis caused the Treasury to open its tap facility to raise another P5 billion from the papers.\nThe average yield on the 10-year bonds jumped by 44.3 basis points to 4.689% on Tuesday from the 4.246% fetched when the series was last offered.\nThis was also higher than 4.363% fetched for the tenor at the secondary market prior to the auction, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System\u2019s website.\nNational Treasurer Rosalia V. de Leon said the average rate of the papers offered on Tuesday tracked US Treasury yields after the Federal Reserve said it could start reducing its asset purchases by November.\nThe rate of the benchmark 10-year papers went up to 1.48% on Monday from just 1.31% a week ago, based on US Department of the Treasury\u2019s website.\nThe Fed, following its two-day policy meeting, last week said it could begin tapering its monthly bond purchases by November if jobs data will remain strong, Reuters reported.\nInterest rate hikes may also begin next year once its bond-buying program ends, as nine of 18 Fed policy makers believe borrowing costs have to increase in 2022.\nThe yield on the reissued 10-year bonds also rose due to higher inflation forecasts for 2021 and 2022 from the Bangko Sentral ng Pilipinas (BSP), Ms. De Leon said.\nThe BSP last week hiked its inflation forecasts as supply issues continue to push food prices higher. It raised its outlook for this year to 4.4% from 4.1% previously. For next year, the BSP also hiked its forecast to 3.3% from 3.1%.\nHeadline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years. This brought the eight-month average to 4.4%, above the central bank\u2019s 2-4% target for the year.\nMeanwhile, a bond trader said the rate fetched for the T-bonds was within market expectations, given the Fed\u2019s hawkish hints and the BSP\u2019s inflation outlook.\nThe trader added that the movement of bond rates will depend on the BTr\u2019s borrowing plan for October.\n\u201cWe can expect it to go higher, especially if the BTr decides to continue with the same borrowing mix for October. If there will be no 10-year paper next month, then we are likely seeing the peak for this space,\u201d the trader said via Viber.\nThe BTr has raised P262 billion from the local debt market this month, excluding the results of the tap facility offer on Tuesday. This is above the P250-billion program for the month after it opened the tap facility on several occasions.\nBroken down, it borrowed P185 billion via T-bonds, higher than its plan to raise P175 billion. It also raised P77 billion from the short-term T-bills, slightly higher than the P75-billion program.\nThe government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. \u2014 B.M. Laforga", "date_published": "2021-09-29T00:05:12+08:00", "date_modified": "2021-09-28T18:00:16+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/Btr-Treasury.jpg", "tags": [ "Beatrice M. Laforga", "Banking & Finance", "Editors' Picks" ], "summary": "THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday even as its yield climbed due to concerns over rising inflation." }, { "id": "/?p=399587", "url": "/banking-finance/2021/09/29/399587/inlife-expects-turnaround-this-year/", "title": "InLife expects turnaround this year", "content_html": "INSULAR LIFE Assurance Co., Ltd. (InLife) aims to end the year strong despite an increase in claims due to the prolonged coronavirus pandemic, its top official said.
\nRaoul E. Littaua, InLife\u2019s newly appointed president and chief executive officer, said the company saw its gross premiums written climb by 52.6% to P3.54 billion in the first quarter from P2.32 billion in the same period a year ago.
\nThe company\u2019s new business annual premium equivalent also grew 42% to P422.21 million during the period from P297.44 million the year prior.
\n\u201cWhat we\u2019ve seen in the second quarter actually has been a stronger performance and this continues to be sustained all the way to this month as we approach the last quarter of the year. And I think that\u2019s going to be sustained. We\u2019re going to have a very good turnaround this year,\u201d he told reporters at an online briefing on Tuesday.
\nMr. Littaua expects the company to rebound from the \u201cchallenging\u201d year it had in 2020, which was when the coronavirus pandemic hit, with lockdown restrictions affecting their ability to offer insurance products that were traditionally sold in person until the Insurance Commission (IC) allowed remote selling in early April.
\n\u201cIn the case of InLife, it\u2019s also a fortunate thing that we have made investments in technology [and] in digitization way before the pandemic. InLife is the first insurance company in the country to have automated underwriting so it was fairly quick for us to move to fully digital platform,\u201d he said.
\nDespite its impact on their business, Mr. Littaua said the pandemic improved awareness of the importance of insurance protection, which also helped their sales.
\n\u201c[Based on] the growth in our business, we can say there\u2019s a surge in demand for protection products. We\u2019ve seen that in our agency channel and our bancassurance channel. That\u2019s because of the heightened awareness of people for life insurance protection at this time,\u201d he said.
\nClaim applications also rose last year, especially with the addition of coronavirus-related claims, but Mr. Littaua said the insurer has the \u201cfinancial strength to meet all those obligations.\u201d\u00a0
\nHe noted that insurers need to shift their business model from the traditional approach of purely indemnifying risks towards the more forward-looking view of prevention, where \u201clonger, healthier and more meaningful lives for Filipinos\u201d is the top priority.
\nHe said InLife wants to become the local industry\u2019s sole provider of complete risk protection services, including life, nonlife, health and group insurance products.
\nGross premiums collected by the country\u2019s life and nonlife insurance firms and mutual benefit associations rose 27.82% from a year earlier to P99.89 billion in the first quarter, IC data showed.
\nThe insurance industry also made P4.35 billion in pandemic-related payouts in the first half of 2021, 12% higher than the P3.9 billion released in the whole of last year. \u2014 B.M. Laforga
\n", "content_text": "INSULAR LIFE Assurance Co., Ltd. (InLife) aims to end the year strong despite an increase in claims due to the prolonged coronavirus pandemic, its top official said.\nRaoul E. Littaua, InLife\u2019s newly appointed president and chief executive officer, said the company saw its gross premiums written climb by 52.6% to P3.54 billion in the first quarter from P2.32 billion in the same period a year ago.\nThe company\u2019s new business annual premium equivalent also grew 42% to P422.21 million during the period from P297.44 million the year prior.\n\u201cWhat we\u2019ve seen in the second quarter actually has been a stronger performance and this continues to be sustained all the way to this month as we approach the last quarter of the year. And I think that\u2019s going to be sustained. We\u2019re going to have a very good turnaround this year,\u201d he told reporters at an online briefing on Tuesday.\nMr. Littaua expects the company to rebound from the \u201cchallenging\u201d year it had in 2020, which was when the coronavirus pandemic hit, with lockdown restrictions affecting their ability to offer insurance products that were traditionally sold in person until the Insurance Commission (IC) allowed remote selling in early April.\n\u201cIn the case of InLife, it\u2019s also a fortunate thing that we have made investments in technology [and] in digitization way before the pandemic. InLife is the first insurance company in the country to have automated underwriting so it was fairly quick for us to move to fully digital platform,\u201d he said.\nDespite its impact on their business, Mr. Littaua said the pandemic improved awareness of the importance of insurance protection, which also helped their sales.\n\u201c[Based on] the growth in our business, we can say there\u2019s a surge in demand for protection products. We\u2019ve seen that in our agency channel and our bancassurance channel. That\u2019s because of the heightened awareness of people for life insurance protection at this time,\u201d he said.\nClaim applications also rose last year, especially with the addition of coronavirus-related claims, but Mr. Littaua said the insurer has the \u201cfinancial strength to meet all those obligations.\u201d\u00a0\nHe noted that insurers need to shift their business model from the traditional approach of purely indemnifying risks towards the more forward-looking view of prevention, where \u201clonger, healthier and more meaningful lives for Filipinos\u201d is the top priority.\nHe said InLife wants to become the local industry\u2019s sole provider of complete risk protection services, including life, nonlife, health and group insurance products.\nGross premiums collected by the country\u2019s life and nonlife insurance firms and mutual benefit associations rose 27.82% from a year earlier to P99.89 billion in the first quarter, IC data showed.\nThe insurance industry also made P4.35 billion in pandemic-related payouts in the first half of 2021, 12% higher than the P3.9 billion released in the whole of last year. \u2014 B.M. Laforga", "date_published": "2021-09-29T00:04:11+08:00", "date_modified": "2021-09-28T18:00:04+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/InLife-logo.jpg", "tags": [ "Beatrice M. Laforga", "Featured2", "Banking & Finance", "Editors' Picks" ], "summary": "INSULAR LIFE Assurance Co., Ltd. (InLife) aims to end the year strong despite an increase in claims due to the prolonged coronavirus pandemic, its top official said." }, { "id": "/?p=399717", "url": "/economy/2021/09/28/399717/mining-industry-environmental-compliance-report-due-next-year/", "title": "Mining industry environmental compliance report due next year", "content_html": "THE REPORT of the Mining Industry Coordinating Council (MICC) on large-scale metallic mines will likely be made available to the public by the second quarter of next year, and will indicate the failure of some companies to comply with environmental rules according to Finance Secretary Carlos G. Dominguez III.
\nMr. Dominguez, who co-chairs the MICC with Environment Secretary Roy A. Cimatu, said the report is targeted for completion by May 2022 and will be released to the public in the second quarter of that year. It will contain the results of the two-phase audit of the industry along with the review of mines in the Bangsamoro Autonomous Region in Muslim Mindanao.
\n\u201cThe report should be in such a form that can be used by the ordinary reader and the public, and that it be made widely available, not only to government officials, the legislature, maybe even in the judiciary, but also to the public in general,\u201d he said in a statement Tuesday, which outlined his remarks during a Sept. 17 meeting of the council.
\nSo far, the review has covered 44 large-scale metallic mines in which a \u201cmajority\u201d registered passing marks on legal and technical matters, \u201cbut required major reforms in the environmental, social and economic aspects of their operations.\u201d
\nMines and Geosciences Bureau Director Wilfredo G. Moncano said the audit turned up \u201cmarked improvements\u201d after the Environment department issued administrative orders aimed at addressing the deficiencies of the sector.
\nExecutive Order (EO) No. 79 issued in 2012 created the MICC to audit mining companies based on the economic, sociocultural, technical, environmental and legal aspects of their operations, as well as to review current laws and regulations.
\n\u201cThis is the only administration that has actually done a serious review of the mining operations as mandated by the EO,\u201d Mr. Dominguez said.
\nHe said making the report available to the public will enhance trust and confidence in the government. It will also showcase the capacity of Philippine experts to conduct mining audits. \u2014 Beatrice M. Laforga
\n", "content_text": "THE REPORT of the Mining Industry Coordinating Council (MICC) on large-scale metallic mines will likely be made available to the public by the second quarter of next year, and will indicate the failure of some companies to comply with environmental rules according to Finance Secretary Carlos G. Dominguez III.\nMr. Dominguez, who co-chairs the MICC with Environment Secretary Roy A. Cimatu, said the report is targeted for completion by May 2022 and will be released to the public in the second quarter of that year. It will contain the results of the two-phase audit of the industry along with the review of mines in the Bangsamoro Autonomous Region in Muslim Mindanao. \n\u201cThe report should be in such a form that can be used by the ordinary reader and the public, and that it be made widely available, not only to government officials, the legislature, maybe even in the judiciary, but also to the public in general,\u201d he said in a statement Tuesday, which outlined his remarks during a Sept. 17 meeting of the council.\nSo far, the review has covered 44 large-scale metallic mines in which a \u201cmajority\u201d registered passing marks on legal and technical matters, \u201cbut required major reforms in the environmental, social and economic aspects of their operations.\u201d\nMines and Geosciences Bureau Director Wilfredo G. Moncano said the audit turned up \u201cmarked improvements\u201d after the Environment department issued administrative orders aimed at addressing the deficiencies of the sector.\nExecutive Order (EO) No. 79 issued in 2012 created the MICC to audit mining companies based on the economic, sociocultural, technical, environmental and legal aspects of their operations, as well as to review current laws and regulations.\n\u201cThis is the only administration that has actually done a serious review of the mining operations as mandated by the EO,\u201d Mr. Dominguez said.\nHe said making the report available to the public will enhance trust and confidence in the government. It will also showcase the capacity of Philippine experts to conduct mining audits. \u2014 Beatrice M. Laforga", "date_published": "2021-09-28T20:12:49+08:00", "date_modified": "2021-09-28T20:12:49+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/04/mining-iron-px.jpg", "tags": [ "Beatrice M. Laforga", "Economy", "Editors' Picks" ], "summary": "THE REPORT of the Mining Industry Coordinating Council (MICC) on large-scale metallic mines will likely be made available to the public by the second quarter of next year, and will indicate the failure of some companies to comply with environmental rules according to Finance Secretary Carlos G. Dominguez III." }, { "id": "/?p=399713", "url": "/economy/2021/09/28/399713/phl-expected-to-benefit-from-profit-shifting-rules/", "title": "PHL expected to benefit from profit-shifting rules", "content_html": "THE PHILIPPINES is expected to benefit modestly from international tax rules to deter profit shifting by multinationals, the ASEAN+3 Macroeconomic Research Office (AMRO) said.
\nIn an analysis published Tuesday, AMRO said the proposed two-pillar solution under the proposed inclusive framework on base erosion and profit shifting (BEPS) can reallocate at least $100 billion worth of tax rights and generate $150 billion in additional global tax revenue each year.
\nThe first pillar hopes to shift the right to tax a multinational company where the revenue is generated, instead of the current practice of collecting taxes where the business is incorporated. The second part of the framework aims to establish a proposed 15% global minimum tax rate for the sector.
\nIn reallocating a portion of taxable profit to economies where the revenue is generated, AMRO said populous countries with high income and large digital economies will benefit the most.
\n\u201cChina and Japan will likely receive a significant portion of the reallocated residual profit. Populous middle-income economies, such as Indonesia, the Philippines, Thailand and Vietnam, are expected to gain moderately,\u201d it said.
\nIn an e-mail Tuesday, AMRO said the estimates were arrived at based on the potential number of consumers within a given population and income per capita. These inputs helped determine the new tax base once the framework has been rolled out.
\nTo increase potential revenue of the country, AMRO said the Philippines needs to launch reforms that will scale down the use of tax incentives to attract investment from multinational companies.
\nAside from population, AMRO said the concentration of multinational regional headquarters in certain countries will also affect government tax collection.
\nForegoing revenue-based digital service taxes, as proposed under pillar one to avoid double taxation, however, would result in lower collections. The Philippines is yet to adopt taxes for digital services.
\nAMRO said the second pillar of the framework, which would set a floor on tax rates for multinational companies, will likely hurt regional economies with low corporate tax rates such as Cambodia, Hong Kong, South Korea and Singapore, whose rates are currently below 15%.
\n\u201cThese economies will be less attractive to existing multinational enterprises and potential investors as the attractiveness of their tax incentives diminishes,\u201d it said.
\nThe Philippines reduced its corporate income tax to 25% this year from 30% previously, and will further cut the rate by one percentage point annually until it reaches 20% in 2027. It also removed the 10% preferential tax rate for regional operating headquarters.
\nThe framework aims to create a more \u201cstable and fairer\u201d global tax structure to address BEPS practices that transnational companies undertake to arbitrage tax regimes and shift profits to locations with low or zero tax rates.
\nCiting estimates from the Organisation for Economic Co-operation and Development, AMRO said governments are losing $100-400 billion annually in tax revenue due to these profit-shifting schemes.
\n\u201cAchieving global consensus on such global tax reform is a complicated process. It would require economies with competing interests to find common ground and redefine the ways of doing cross-border business,\u201d it said.
\nThe Department of Finance has said that the Philippines is making progress in joining the inclusive framework, which was first established in 2015 and has 134 signatories which pledge to implement 15 action plans to address tax avoidance. \u2014 Beatrice M. Laforga
\n", "content_text": "THE PHILIPPINES is expected to benefit modestly from international tax rules to deter profit shifting by multinationals, the ASEAN+3 Macroeconomic Research Office (AMRO) said.\nIn an analysis published Tuesday, AMRO said the proposed two-pillar solution under the proposed inclusive framework on base erosion and profit shifting (BEPS) can reallocate at least $100 billion worth of tax rights and generate $150 billion in additional global tax revenue each year.\nThe first pillar hopes to shift the right to tax a multinational company where the revenue is generated, instead of the current practice of collecting taxes where the business is incorporated. The second part of the framework aims to establish a proposed 15% global minimum tax rate for the sector.\nIn reallocating a portion of taxable profit to economies where the revenue is generated, AMRO said populous countries with high income and large digital economies will benefit the most.\n\u201cChina and Japan will likely receive a significant portion of the reallocated residual profit. Populous middle-income economies, such as Indonesia, the Philippines, Thailand and Vietnam, are expected to gain moderately,\u201d it said.\nIn an e-mail Tuesday, AMRO said the estimates were arrived at based on the potential number of consumers within a given population and income per capita. These inputs helped determine the new tax base once the framework has been rolled out.\nTo increase potential revenue of the country, AMRO said the Philippines needs to launch reforms that will scale down the use of tax incentives to attract investment from multinational companies.\nAside from population, AMRO said the concentration of multinational regional headquarters in certain countries will also affect government tax collection.\nForegoing revenue-based digital service taxes, as proposed under pillar one to avoid double taxation, however, would result in lower collections. The Philippines is yet to adopt taxes for digital services.\nAMRO said the second pillar of the framework, which would set a floor on tax rates for multinational companies, will likely hurt regional economies with low corporate tax rates such as Cambodia, Hong Kong, South Korea and Singapore, whose rates are currently below 15%.\n\u201cThese economies will be less attractive to existing multinational enterprises and potential investors as the attractiveness of their tax incentives diminishes,\u201d it said.\nThe Philippines reduced its corporate income tax to 25% this year from 30% previously, and will further cut the rate by one percentage point annually until it reaches 20% in 2027. It also removed the 10% preferential tax rate for regional operating headquarters.\nThe framework aims to create a more \u201cstable and fairer\u201d global tax structure to address BEPS practices that transnational companies undertake to arbitrage tax regimes and shift profits to locations with low or zero tax rates.\nCiting estimates from the Organisation for Economic Co-operation and Development, AMRO said governments are losing $100-400 billion annually in tax revenue due to these profit-shifting schemes.\n\u201cAchieving global consensus on such global tax reform is a complicated process. It would require economies with competing interests to find common ground and redefine the ways of doing cross-border business,\u201d it said.\nThe Department of Finance has said that the Philippines is making progress in joining the inclusive framework, which was first established in 2015 and has 134 signatories which pledge to implement 15 action plans to address tax avoidance. \u2014 Beatrice M. Laforga", "date_published": "2021-09-28T20:07:15+08:00", "date_modified": "2021-09-28T20:07:15+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/Profit-sharing-world.jpg", "tags": [ "Beatrice M. Laforga", "Economy" ], "summary": "THE PHILIPPINES is expected to benefit modestly from international tax rules to deter profit shifting by multinationals, the ASEAN+3 Macroeconomic Research Office (AMRO) said." }, { "id": "/?p=399440", "url": "/top-stories/2021/09/28/399440/lockdown-likely-hurt-q3-gdp-growth/", "title": "Lockdown likely hurt Q3 GDP growth", "content_html": "![\"\"](\"/wp-content/uploads/2021/09/Restaurant-1.jpg\")
By Beatrice M. Laforga, Reporter
\nTHE PHILIPPINE economy likely grew at a much slower pace in the third quarter compared with the previous three months, after the Delta-driven surge in coronavirus cases prompted a stricter lockdown in the capital region.
\nRajiv Biswas, chief economist for Asia and the Pacific at IHS Markit, told 大象传媒 that Philippine gross domestic product (GDP) was seen to have grown by 3.8% in the third quarter, sharply slower than the 11.8% expansion in the second quarter but better than the 11.6% contraction in the third quarter of 2020.
\n\u201cThe slowdown reflects the impact of stricter lockdown measures imposed in Metro Manila and some other areas due to escalating new COVID-19 cases during Q3 2021. This has disrupted consumption spending and also impacted adversely on many segments of industrial production,\u201d he said via e-mail last week.
\nSought for comment, Socioeconomic Planning Secretary Karl Kendrick T. Chua did not give his third-quarter GDP estimate but argued that the economy saw increased mobility this time compared with the more stringent lockdowns in 2020. He also indicated there was \u201csome growth\u201d in the third quarter, which ends on Sept. 30.
\nLocal economists expected economic expansion to have slowed down in the July to September period, noting that the rise in COVID-19 cases driven by more infectious variants has hampered consumption and business activities.
\nAsian Institute of Management economist John Paolo R. Rivera said GDP may rise by 3% to 5% this quarter, while UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion gave a higher 5-8% forecast range.
\n\u201cWe have seen how damaging to the Philippine economy is the imposition of ECQ (enhanced community quarantine) like what happened from August to September. It is for this reason that I personally foresee that the Philippines is expected to see setbacks in economic growth figures for the third quarter due to the resurgence of COVID-19 infections driven by more infectious variants,\u201d Mr. Rivera said via Viber on Sunday.
\nThe government imposed a two-week ECQ in Metro Manila in August as it sought to contain its worst COVID-19 outbreak. This month, the government shifted to a new COVID-19 strategy, implementing granular lockdowns in areas where outbreaks are concentrated.
\nDELTA SHOCK
\nEconomic shocks caused by the Delta outbreak were felt across the Association of Southeast Asian Nations economies in the third quarter, including Indonesia, Malaysia and Vietnam, according to IHS Markit\u2019s Mr. Biswas.
He said the Philippines can only achieve a sustained economic recovery if vaccination ramps up and a bigger portion of the population is inoculated to allow the reopening of more businesses.
\nAround 17.7% of the Filipino population has been vaccinated as of Sept. 23. Mr. Biswas said the country\u2019s vaccination rate remains low compared with advanced economies.
\n\u201cThe Philippines will continue to be vulnerable to new COVID-19 waves until the fully vaccinated share of the population reaches around 70% to 80% of the population,\u201d he said.
\n\u201cA key factor to achieving sustainable economic recovery will be ramping up the COVID-19 vaccination rate rapidly,\u201d he added.
\nMr. Rivera said outlook for the rest of the year remains highly uncertain and will depend on the country\u2019s ability to contain new outbreaks, but the already-downgraded 4-5% growth target set by the economic team can still be achieved.
\nHowever, Mr. Biswas said IHS Markit is only expecting the Philippine economy to sustain its recovery next year, with GDP growing by 7.8% on expectations of a faster vaccine rollout by late-2021 or early 2022.
\nThe National Economic and Development Authority estimated the long-run total economic cost of the pandemic and lockdowns could hit P41.4 trillion in 40 years.
\nMr. Chua has said GDP may only go back to its pre-pandemic level by the end of 2022 or early 2023, while the growth path could only return to the pre-crisis trajectory in 10 years.
\n", "content_text": "Restaurants continue to operate in limited capacity amid the lockdown. \u2014 PHILIPPINE STAR/ MICHAEL VARCAS\nBy Beatrice M. Laforga, Reporter\nTHE PHILIPPINE economy likely grew at a much slower pace in the third quarter compared with the previous three months, after the Delta-driven surge in coronavirus cases prompted a stricter lockdown in the capital region.\nRajiv Biswas, chief economist for Asia and the Pacific at IHS Markit, told 大象传媒 that Philippine gross domestic product (GDP) was seen to have grown by 3.8% in the third quarter, sharply slower than the 11.8% expansion in the second quarter but better than the 11.6% contraction in the third quarter of 2020.\n\u201cThe slowdown reflects the impact of stricter lockdown measures imposed in Metro Manila and some other areas due to escalating new COVID-19 cases during Q3 2021. This has disrupted consumption spending and also impacted adversely on many segments of industrial production,\u201d he said via e-mail last week.\nSought for comment, Socioeconomic Planning Secretary Karl Kendrick T. Chua did not give his third-quarter GDP estimate but argued that the economy saw increased mobility this time compared with the more stringent lockdowns in 2020. He also indicated there was \u201csome growth\u201d in the third quarter, which ends on Sept. 30.\nLocal economists expected economic expansion to have slowed down in the July to September period, noting that the rise in COVID-19 cases driven by more infectious variants has hampered consumption and business activities.\nAsian Institute of Management economist John Paolo R. Rivera said GDP may rise by 3% to 5% this quarter, while UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion gave a higher 5-8% forecast range.\n\u201cWe have seen how damaging to the Philippine economy is the imposition of ECQ (enhanced community quarantine) like what happened from August to September. It is for this reason that I personally foresee that the Philippines is expected to see setbacks in economic growth figures for the third quarter due to the resurgence of COVID-19 infections driven by more infectious variants,\u201d Mr. Rivera said via Viber on Sunday.\nThe government imposed a two-week ECQ in Metro Manila in August as it sought to contain its worst COVID-19 outbreak. This month, the government shifted to a new COVID-19 strategy, implementing granular lockdowns in areas where outbreaks are concentrated.\nDELTA SHOCK\nEconomic shocks caused by the Delta outbreak were felt across the Association of Southeast Asian Nations economies in the third quarter, including Indonesia, Malaysia and Vietnam, according to IHS Markit\u2019s Mr. Biswas.\nHe said the Philippines can only achieve a sustained economic recovery if vaccination ramps up and a bigger portion of the population is inoculated to allow the reopening of more businesses. \nAround 17.7% of the Filipino population has been vaccinated as of Sept. 23. Mr. Biswas said the country\u2019s vaccination rate remains low compared with advanced economies.\n\u201cThe Philippines will continue to be vulnerable to new COVID-19 waves until the fully vaccinated share of the population reaches around 70% to 80% of the population,\u201d he said.\n\u201cA key factor to achieving sustainable economic recovery will be ramping up the COVID-19 vaccination rate rapidly,\u201d he added.\nMr. Rivera said outlook for the rest of the year remains highly uncertain and will depend on the country\u2019s ability to contain new outbreaks, but the already-downgraded 4-5% growth target set by the economic team can still be achieved.\nHowever, Mr. Biswas said IHS Markit is only expecting the Philippine economy to sustain its recovery next year, with GDP growing by 7.8% on expectations of a faster vaccine rollout by late-2021 or early 2022.\nThe National Economic and Development Authority estimated the long-run total economic cost of the pandemic and lockdowns could hit P41.4 trillion in 40 years.\nMr. Chua has said GDP may only go back to its pre-pandemic level by the end of 2022 or early 2023, while the growth path could only return to the pre-crisis trajectory in 10 years.", "date_published": "2021-09-28T00:34:40+08:00", "date_modified": "2021-09-27T22:07:53+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/Restaurant-1.jpg", "tags": [ "Beatrice M. Laforga", "Editors' Picks", "大象传媒" ], "summary": "THE PHILIPPINE economy likely grew at a much slower pace in the third quarter compared with the previous three months, after the Delta-driven surge in coronavirus cases prompted a stricter lockdown in the capital region." }, { "id": "/?p=399334", "url": "/banking-finance/2021/09/28/399334/govt-upsizes-t-bills-volume-as-rates-go-down/", "title": "Gov\u2019t upsizes T-bills volume as rates go down", "content_html": "![\"\"](\"/wp-content/uploads/2021/08/BTr-Treasury-720p-8.jpg\")
THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded on Monday as rates declined across the board on high demand for the safe assets amid lingering inflationary concerns.
\nThe Bureau of the Treasury (BTr) borrowed P17 billion via the T-bills on Monday, bigger than the initial plan to raise just P15 billion as total tenders reached P63.865 billion.
\nThe auction was more than four times oversubscribed but the demand was smaller than the overall bids worth P72.5 billion seen in the previous offering last week.
\nBroken down, the BTr raised P5 billion as planned in 91-day debt papers from P17.24 billion in tenders. The average rate of the three-month debt went down by one basis point (bp) to 1.06% from 1.07%, previously.
\nIt also raised P5 billion as planned in 182-day T-bills as the tenor attracted bids worth P21.505 billion. The six-month debt fetched an average rate of 1.385%, down by 0.4 bp from 1.389% a week ago.
\nLastly, the government borrowed P7 billion via the 364-day securities, upsizing from the programmed P5 billion as tenders hit P25.12 billion. The average yield on the one-year bond also fell by 1.5 bps to 1.582% from 1.597 bps.
\n\u201cLiquidity [is] very much around, [coupled with] P22 billion in maturities this week. Placements remain in short tenor buckets,\u201d National Treasurer Rosalia V. de Leon told reporters in a Viber message on Monday.
\nA bond trader said rates fell within market expectations after the Bangko Sentral ng Pilipinas (BSP) maintained its key policy rates at the current record low.
\nThe BSP kept benchmark interest rates unchanged at 2% during its policy meeting last Thursday as widely expected, citing the need to support a fragile economic recovery.
\nRates fell as strong demand on the bills prevailed, according to the trader who said investors preferred safer short-term assets over long-dated bonds due to lingering inflationary concerns.
\nThe BSP last week raised its inflation outlook for the year to 4.4% from 4.1% previously as supply issues continue to push food prices higher. This is beyond the 2-4% target of the central bank for 2021.
\nHeadline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years, to bring the eight-month average to 4.4%, which is above the central bank\u2019s target.
\nThe BTr made a full award of the T-bills it offered last week as rates dipped across the board and total bids went up to P72.5 billion from P63.27 billion the week prior.
\nOn Tuesday, the BTr will also auction off P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and nine months.
\nThe Treasury is looking to raise P250 billion from the local market this month: P75 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.
\nThe government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. \u2014 Beatrice M. Laforga
\n", "content_text": "NATIONAL Treasurer Rosalia V. de Leon: \u201cLiquidity [is] very much around, [coupled with] P22 billion in maturities this week. Placements remain in short tenor buckets.\u201d \u2014 BW FILE PHOTO\nTHE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded on Monday as rates declined across the board on high demand for the safe assets amid lingering inflationary concerns.\nThe Bureau of the Treasury (BTr) borrowed P17 billion via the T-bills on Monday, bigger than the initial plan to raise just P15 billion as total tenders reached P63.865 billion.\nThe auction was more than four times oversubscribed but the demand was smaller than the overall bids worth P72.5 billion seen in the previous offering last week.\nBroken down, the BTr raised P5 billion as planned in 91-day debt papers from P17.24 billion in tenders. The average rate of the three-month debt went down by one basis point (bp) to 1.06% from 1.07%, previously.\nIt also raised P5 billion as planned in 182-day T-bills as the tenor attracted bids worth P21.505 billion. The six-month debt fetched an average rate of 1.385%, down by 0.4 bp from 1.389% a week ago.\nLastly, the government borrowed P7 billion via the 364-day securities, upsizing from the programmed P5 billion as tenders hit P25.12 billion. The average yield on the one-year bond also fell by 1.5 bps to 1.582% from 1.597 bps.\n\u201cLiquidity [is] very much around, [coupled with] P22 billion in maturities this week. Placements remain in short tenor buckets,\u201d National Treasurer Rosalia V. de Leon told reporters in a Viber message on Monday.\nA bond trader said rates fell within market expectations after the Bangko Sentral ng Pilipinas (BSP) maintained its key policy rates at the current record low.\nThe BSP kept benchmark interest rates unchanged at 2% during its policy meeting last Thursday as widely expected, citing the need to support a fragile economic recovery.\nRates fell as strong demand on the bills prevailed, according to the trader who said investors preferred safer short-term assets over long-dated bonds due to lingering inflationary concerns.\nThe BSP last week raised its inflation outlook for the year to 4.4% from 4.1% previously as supply issues continue to push food prices higher. This is beyond the 2-4% target of the central bank for 2021.\nHeadline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years, to bring the eight-month average to 4.4%, which is above the central bank\u2019s target.\nThe BTr made a full award of the T-bills it offered last week as rates dipped across the board and total bids went up to P72.5 billion from P63.27 billion the week prior.\nOn Tuesday, the BTr will also auction off P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and nine months.\nThe Treasury is looking to raise P250 billion from the local market this month: P75 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.\nThe government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. \u2014 Beatrice M. Laforga", "date_published": "2021-09-28T00:01:07+08:00", "date_modified": "2021-09-27T18:36:16+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/BTr-Treasury-720p-8.jpg", "tags": [ "Beatrice M. Laforga", "Featured2", "Banking & Finance", "Editors' Picks" ], "summary": "THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded on Monday as rates declined across the board on high demand for the safe assets amid lingering inflationary concerns." }, { "id": "/?p=399386", "url": "/economy/2021/09/27/399386/banks-support-expanded-mobility-for-vaccinated-people/", "title": "Banks support expanded mobility for vaccinated people", "content_html": "THE bankers\u2019 association said it supports measures that will allow greater mobility for fully vaccinated people to boost spending and help the economy rebound from the pandemic.
\n\u201cThe Bankers Association of the Philippines (BAP) strongly supports efforts to grant greater mobility to fully vaccinated individuals,\u201d BAP President Jose Arnulfo A. Veloso said in a statement Monday.
\nHe said offering mobility incentives in Metro Manila and surrounding areas, where 50% of the population is fully inoculated, can spur economic activity.
\n\u201cThe mobility of fully vaccinated Filipinos will encourage spending on various goods and services including in tourism, hospitality, and transport industries that are among those hit the hardest by this ongoing COVID-19 pandemic,\u201d added Mr. Veloso, who is also the president and CEO of the Philippine National Bank.
\nHe said bringing back domestic consumption will aid in bringing about a sustained economic recovery.
\nThe consumption-driven economy grew by 3.7% in the first half and needs to achieve at least a 4.3% expansion in the fourth quarter to meet the lower end of the government\u2019s 4-5% growth target.
\nAround 17.7% of the population has been fully vaccinated as of Sept. 23, according to the Our World in Data website.
\nSince the economic rebound has yet to gain traction, ING Bank Senior Economist Nicholas Antonio T. Mapa warned that a premature relaxation of quarantine measures and policy support can also delay the recovery as this will make the country prone to \u201creinfection.\u201d
\n\u201cJust like a wound that has yet to completely heal, the Philippine economy remains stuck in low gear and is clearly in need of additional support. Giving in to the itch and quickly reversing these support measures will inevitably backfire on the recovery process and work to undermine the full healing of the economy,\u201d he said in a note Monday.
\nMr. Mapa said signs of recovery have emerged after second quarter gross domestic product growth came in at 11.8% but the Philippines is still a year and a half away from returning to its pre-pandemic growth trend.
\nHe said monetary and fiscal support for the economy is still needed to sustain the recovery, after the central bank reported that both businesses and consumers remain pessimistic about the third quarter while bank lending is only starting to pick up.
\n\u201cPatience and determination throughout the recovery and healing phase will be crucial as we avoid costly removal of support just when the economy needs it the most,\u201d he added. \u2014 Beatrice M. Laforga
\n", "content_text": "THE bankers\u2019 association said it supports measures that will allow greater mobility for fully vaccinated people to boost spending and help the economy rebound from the pandemic.\n\u201cThe Bankers Association of the Philippines (BAP) strongly supports efforts to grant greater mobility to fully vaccinated individuals,\u201d BAP President Jose Arnulfo A. Veloso said in a statement Monday.\nHe said offering mobility incentives in Metro Manila and surrounding areas, where 50% of the population is fully inoculated, can spur economic activity.\n\u201cThe mobility of fully vaccinated Filipinos will encourage spending on various goods and services including in tourism, hospitality, and transport industries that are among those hit the hardest by this ongoing COVID-19 pandemic,\u201d added Mr. Veloso, who is also the president and CEO of the Philippine National Bank.\nHe said bringing back domestic consumption will aid in bringing about a sustained economic recovery.\nThe consumption-driven economy grew by 3.7% in the first half and needs to achieve at least a 4.3% expansion in the fourth quarter to meet the lower end of the government\u2019s 4-5% growth target.\nAround 17.7% of the population has been fully vaccinated as of Sept. 23, according to the Our World in Data website.\nSince the economic rebound has yet to gain traction, ING Bank Senior Economist Nicholas Antonio T. Mapa warned that a premature relaxation of quarantine measures and policy support can also delay the recovery as this will make the country prone to \u201creinfection.\u201d\n\u201cJust like a wound that has yet to completely heal, the Philippine economy remains stuck in low gear and is clearly in need of additional support. Giving in to the itch and quickly reversing these support measures will inevitably backfire on the recovery process and work to undermine the full healing of the economy,\u201d he said in a note Monday.\nMr. Mapa said signs of recovery have emerged after second quarter gross domestic product growth came in at 11.8% but the Philippines is still a year and a half away from returning to its pre-pandemic growth trend.\nHe said monetary and fiscal support for the economy is still needed to sustain the recovery, after the central bank reported that both businesses and consumers remain pessimistic about the third quarter while bank lending is only starting to pick up.\n\u201cPatience and determination throughout the recovery and healing phase will be crucial as we avoid costly removal of support just when the economy needs it the most,\u201d he added. \u2014 Beatrice M. Laforga", "date_published": "2021-09-27T20:07:26+08:00", "date_modified": "2021-09-27T20:07:26+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/covid-19-vaccination.jpg", "tags": [ "Beatrice M. Laforga", "Economy", "Editors' Picks" ], "summary": "THE bankers\u2019 association said it supports measures that will allow greater mobility for fully vaccinated people to boost spending and help the economy rebound from the pandemic." }, { "id": "/?p=398888", "url": "/banking-finance/2021/09/27/398888/t-bill-bond-rates-seen-to-inch-up-amid-inflation-fears/", "title": "T-bill, bond rates seen to inch up amid inflation fears", "content_html": "YIELDS on government securities may rise this week on the expected increase in interest rates following the signals from the US Federal Reserve last week, coupled with lingering inflation fears back home.
\nThe Bureau of the Treasury (BTr) is set to borrow P15 billion in Treasury bills (T-bills) on Monday, broken down into P5 billion each in 91-, 182- and 364-day debt papers.
\nThe BTr will also auction off P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and nine months on Tuesday.
\nIn separate phone interviews on Friday, a bond trader said T-bill rates will only move sideways on ample demand for the short-term debt while another bond trader is expecting rates to \u201chave an upward bias as investors might ask for higher yields.\u201d
\nFor the reissued 10-year bonds, the first trader expects yields to range from 4.5% to 4.65% while the second trader gave a slightly wider band of 4.5-4.7%.
\nBoth traders cited the signals from the Fed\u2019s meeting last week as the main driving factors for the anticipated increase in bond yields after the central bank laid out its timetable for tapering and interest rate hike.
\nThe Fed after the Federal Open Market Committee\u2019s two-day meeting last week said it could begin tapering its monthly bond purchases by November if jobs data will remain strong, Reuters reported.
\nInterest rate hikes may also begin next year once its bond-buying program ends, as nine of 18 Fed policy makers believe borrowing costs have to increase in 2022.
\nBack home, the traders said the market will also price in lingering fears over high inflation after the Bangko Sentral ng Pilipinas (BSP) increased its forecast for the year.
\nDuring its policy-setting meeting on Thursday, the BSP raised its inflation outlook for the year to 4.4% from 4.1% previously as supply issues continue to push food prices higher. This is beyond the 2-4% target of the central bank for 2021.
\nHeadline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years, to bring the eight-month average to 4.4%, which is above the central bank\u2019s target.
\nThe BTr made a full award of the T-bills it offered last week as rates dipped across the board and total bids went up to P72.5 billion from P63.27 billion the week prior.
\nBroken down, it raised P5 billion as planned via the 91-day debt papers at an average rate of 1.07%, lower than the 1.079% seen at the auction on Sept. 13
\nIt also borrowed the programmed P5 billion via the 182-day T-bills as the average yield went down to 1.389% from 1.402% a week before.
\nLastly, the government made a full P5-billion award of the 364-day papers from P24.42 billion in tenders. The one-year securities fetched an average rate of 1.597%, dipping by 0.7 basis point from 1.604%
\nMeanwhile, the last time the government offered the reissued T-bonds was on Sept. 14 when it borrowed P35 billion as planned from P61.829 billion in total tenders.
\nThe notes fetched an average rate of 4.246%, climbing from 3.914% recorded in the auction on Aug. 3.
\n\u201cThe China Evergrande group debt woes last week triggered a risk off sentiment in the local market, causing yields to adjust higher in the secondary market. The issue will continue to weigh on sentiment,\u201d the first trader said.
\nAt the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.122%, 1.372% and 1.66%, respectively, while the 10-year tenor fetched 4.3406%, according to the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System\u2019s website.
\nThe Treasury is looking to raise P250 billion from the local market this month: P75 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.
\nThe government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. \u2014 Beatrice M. Laforga
\n", "content_text": "YIELDS on government securities may rise this week on the expected increase in interest rates following the signals from the US Federal Reserve last week, coupled with lingering inflation fears back home.\nThe Bureau of the Treasury (BTr) is set to borrow P15 billion in Treasury bills (T-bills) on Monday, broken down into P5 billion each in 91-, 182- and 364-day debt papers.\nThe BTr will also auction off P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and nine months on Tuesday.\nIn separate phone interviews on Friday, a bond trader said T-bill rates will only move sideways on ample demand for the short-term debt while another bond trader is expecting rates to \u201chave an upward bias as investors might ask for higher yields.\u201d\nFor the reissued 10-year bonds, the first trader expects yields to range from 4.5% to 4.65% while the second trader gave a slightly wider band of 4.5-4.7%.\nBoth traders cited the signals from the Fed\u2019s meeting last week as the main driving factors for the anticipated increase in bond yields after the central bank laid out its timetable for tapering and interest rate hike. \nThe Fed after the Federal Open Market Committee\u2019s two-day meeting last week said it could begin tapering its monthly bond purchases by November if jobs data will remain strong, Reuters reported.\nInterest rate hikes may also begin next year once its bond-buying program ends, as nine of 18 Fed policy makers believe borrowing costs have to increase in 2022.\nBack home, the traders said the market will also price in lingering fears over high inflation after the Bangko Sentral ng Pilipinas (BSP) increased its forecast for the year.\nDuring its policy-setting meeting on Thursday, the BSP raised its inflation outlook for the year to 4.4% from 4.1% previously as supply issues continue to push food prices higher. This is beyond the 2-4% target of the central bank for 2021.\nHeadline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years, to bring the eight-month average to 4.4%, which is above the central bank\u2019s target.\nThe BTr made a full award of the T-bills it offered last week as rates dipped across the board and total bids went up to P72.5 billion from P63.27 billion the week prior.\nBroken down, it raised P5 billion as planned via the 91-day debt papers at an average rate of 1.07%, lower than the 1.079% seen at the auction on Sept. 13\nIt also borrowed the programmed P5 billion via the 182-day T-bills as the average yield went down to 1.389% from 1.402% a week before.\nLastly, the government made a full P5-billion award of the 364-day papers from P24.42 billion in tenders. The one-year securities fetched an average rate of 1.597%, dipping by 0.7 basis point from 1.604%\nMeanwhile, the last time the government offered the reissued T-bonds was on Sept. 14 when it borrowed P35 billion as planned from P61.829 billion in total tenders.\nThe notes fetched an average rate of 4.246%, climbing from 3.914% recorded in the auction on Aug. 3.\n\u201cThe China Evergrande group debt woes last week triggered a risk off sentiment in the local market, causing yields to adjust higher in the secondary market. The issue will continue to weigh on sentiment,\u201d the first trader said.\nAt the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.122%, 1.372% and 1.66%, respectively, while the 10-year tenor fetched 4.3406%, according to the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System\u2019s website.\nThe Treasury is looking to raise P250 billion from the local market this month: P75 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.\nThe government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. \u2014 Beatrice M. Laforga", "date_published": "2021-09-27T00:02:38+08:00", "date_modified": "2021-09-26T18:29:04+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/BTr-Treasury-720p-3.jpg", "tags": [ "Beatrice M. Laforga", "Featured2", "Banking & Finance", "Editors' Picks" ], "summary": "YIELDS on government securities may rise this week on the expected increase in interest rates following the signals from the US Federal Reserve last week, coupled with lingering inflation fears back home." }, { "id": "/?p=399113", "url": "/economy/2021/09/26/399113/gocc-subsidies-climb-in-august/", "title": "GOCC subsidies climb in August", "content_html": "SUBSIDIES extended to government-owned firms rose 747% year on year to P42.35 billion in August, led by the increased budgetary support provided to the Philippine Health Insurance Corp. (PhilHealth), the Bureau of the Treasury (BTr) reported.
\nThe BTr said government-owned and -controlled corporations (GOCCs) subsidies were also much higher compared with the P6.08 billion recorded in July.
\nPhilHealth received P30.61 billion in subsidies, accounting for 72.3% of the August total.
\nIt did not receive any budgetary support from the National Government last month and in August 2020.
\nThe National Irrigation Administration (NIA) got P6.01 billion, up 130% from a year earlier.
\nThe National Housing Authority\u2019s (NHA) subsidies nearly doubled to P2.99 billion from P1.48 billion in July. It did not receive budgetary support in August 2020.
\nOther top recipients of subsidies include the Local Water Utilities Administration with P706 million, Small Business Corp. P500 million, Philippine National Railways P332 million, Philippine Children\u2019s Medical Center P168 million and Development Academy of the Philippines P162 million.
\nMeanwhile, GOCCs that did not receive any budgetary support from the government that month were the Bases Conversion Development Authority, Cagayan Economic Zone Authority, National Home Mortgage Finance Corp., National Food Authority, National Power Corp., Philippine Crop Insurance Corp., Philippine Fisheries Development Authority, Philippine Postal Corp. and Tourism Infrastructure and Enterprise Zone Authority.
\nIn the eight months to August, overall subsidies fell 9.8% to P136.72 billion.
\nThis brought subsidies to 92% of the P148.2 billion budgeted for the year.
\nSome P76.06 billion went to support PhilHealth\u2019s operations, followed by the P25.61 billion granted to NIA and the P11.78 billion to NHA.
\nSubsidies are granted to GOCCs to cover operational expenses not supported by their revenue. \u2014 Beatrice M. Laforga
\n", "content_text": "SUBSIDIES extended to government-owned firms rose 747% year on year to P42.35 billion in August, led by the increased budgetary support provided to the Philippine Health Insurance Corp. (PhilHealth), the Bureau of the Treasury (BTr) reported.\nThe BTr said government-owned and -controlled corporations (GOCCs) subsidies were also much higher compared with the P6.08 billion recorded in July.\nPhilHealth received P30.61 billion in subsidies, accounting for 72.3% of the August total.\nIt did not receive any budgetary support from the National Government last month and in August 2020.\nThe National Irrigation Administration (NIA) got P6.01 billion, up 130% from a year earlier.\nThe National Housing Authority\u2019s (NHA) subsidies nearly doubled to P2.99 billion from P1.48 billion in July. It did not receive budgetary support in August 2020.\nOther top recipients of subsidies include the Local Water Utilities Administration with P706 million, Small Business Corp. P500 million, Philippine National Railways P332 million, Philippine Children\u2019s Medical Center P168 million and Development Academy of the Philippines P162 million.\nMeanwhile, GOCCs that did not receive any budgetary support from the government that month were the Bases Conversion Development Authority, Cagayan Economic Zone Authority, National Home Mortgage Finance Corp., National Food Authority, National Power Corp., Philippine Crop Insurance Corp., Philippine Fisheries Development Authority, Philippine Postal Corp. and Tourism Infrastructure and Enterprise Zone Authority.\nIn the eight months to August, overall subsidies fell 9.8% to P136.72 billion.\nThis brought subsidies to 92% of the P148.2 billion budgeted for the year.\nSome P76.06 billion went to support PhilHealth\u2019s operations, followed by the P25.61 billion granted to NIA and the P11.78 billion to NHA.\nSubsidies are granted to GOCCs to cover operational expenses not supported by their revenue. \u2014 Beatrice M. Laforga", "date_published": "2021-09-26T20:36:19+08:00", "date_modified": "2021-09-26T20:36:19+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/PhilHealth.jpg", "tags": [ "Beatrice M. Laforga", "Economy", "Editors' Picks" ], "summary": "SUBSIDIES extended to government-owned firms rose 747% year on year to P42.35 billion in August, led by the increased budgetary support provided to the Philippine Health Insurance Corp. (PhilHealth), the Bureau of the Treasury (BTr) reported." }, { "id": "/?p=398865", "url": "/top-stories/2021/09/24/398865/consumers-less-pessimistic-in-q3-bsp/", "title": "Consumers less pessimistic in Q3 \u2014 BSP", "content_html": "Consumers were less pessimistic in the third quarter as more jobs opened up, but business sentiment turned sour amid a fresh surge in coronavirus infections, according to the Philippine central bank.
\nThe consumer confidence index improved to -19.3% from -30.9% in the second quarter, the Bangko Sentral ng Pilipinas said on Friday.
\nOn the other hand, the business confidence index declined to -5.6% from 1.4% in the previous quarter and after three straight quarters of optimism.
\nThe BSP said consumer confidence has been improving steadily since a 54.5% slump in third quarter of last year amid a coronavirus pandemic.
\nConsumers were less pessimistic as more family members returned to work and households received higher income. They also approved of the cash aid from the government, sustained vaccine rollout and relaxed lockdown levels.
\nConsumer sentiment for the fourth quarter also improved to 2.7% from 1.3%, while the spending outlook was better at 31.4% from 25.4%.
\nThe central bank said consumers were becoming less upbeat on their long-term outlook, with the index declining to 18.6% for the next 12 months from 19.8%.
\nThe business confidence index was worse than 5.3% in the third quarter last year, as more business owners turned pessimistic.
\nThis quarter’s business sentiment was the worst since -23.9% in the first quarter of 2009 during the global financial crisis.
\nCompanies said the coronavirus pandemic affected their confidence this quarter, along with lockdowns in August and the continued decline in sales, orders and earnings.
\nCompanies were also concerned about the government\u2019s pandemic response amid the threat of a more contagious Delta coronavirus variant. Higher raw material and commodity prices also contributed to their gloomy outlook.
\nThe business confidence index for the next quarter was at 31.9%. Companies also grew more confident for the next 12 months, as the index rose to 56% from 52.5%.
\nMeanwhile, the employment outlook index improved to 6.2% for the next quarter and to 24.3% for the next 12 months, from 5% and 14.7%, respectively as more companies expect to hire more workers.
\nBut companies pursuing their expansion plans fell based on their outlook for the last quarter and for the coming year.
\nLending remained muted amid the gloomy outlook, central bank Assistant Governor Iluminada T. Sicat told an online news briefing. \u201cGiven the uncertainty in terms of income source and employment status, households are borrowing less,\u201d she said.
\nThe central bank interviewed 5,670 consumers for the survey held on July 1-14, and 1,511 business owners for the survey held on July 22 to Sept. 15. \u2014 Beatrice M. Laforga
\n", "content_text": "Consumers were less pessimistic in the third quarter as more jobs opened up, but business sentiment turned sour amid a fresh surge in coronavirus infections, according to the Philippine central bank.\nThe consumer confidence index improved to -19.3% from -30.9% in the second quarter, the Bangko Sentral ng Pilipinas said on Friday.\nOn the other hand, the business confidence index declined to -5.6% from 1.4% in the previous quarter and after three straight quarters of optimism.\nThe BSP said consumer confidence has been improving steadily since a 54.5% slump in third quarter of last year amid a coronavirus pandemic.\nConsumers were less pessimistic as more family members returned to work and households received higher income. They also approved of the cash aid from the government, sustained vaccine rollout and relaxed lockdown levels.\nConsumer sentiment for the fourth quarter also improved to 2.7% from 1.3%, while the spending outlook was better at 31.4% from 25.4%.\nThe central bank said consumers were becoming less upbeat on their long-term outlook, with the index declining to 18.6% for the next 12 months from 19.8%.\nThe business confidence index was worse than 5.3% in the third quarter last year, as more business owners turned pessimistic.\nThis quarter’s business sentiment was the worst since -23.9% in the first quarter of 2009 during the global financial crisis.\nCompanies said the coronavirus pandemic affected their confidence this quarter, along with lockdowns in August and the continued decline in sales, orders and earnings.\nCompanies were also concerned about the government\u2019s pandemic response amid the threat of a more contagious Delta coronavirus variant. Higher raw material and commodity prices also contributed to their gloomy outlook.\nThe business confidence index for the next quarter was at 31.9%. Companies also grew more confident for the next 12 months, as the index rose to 56% from 52.5%.\nMeanwhile, the employment outlook index improved to 6.2% for the next quarter and to 24.3% for the next 12 months, from 5% and 14.7%, respectively as more companies expect to hire more workers.\nBut companies pursuing their expansion plans fell based on their outlook for the last quarter and for the coming year.\nLending remained muted amid the gloomy outlook, central bank Assistant Governor Iluminada T. Sicat told an online news briefing. \u201cGiven the uncertainty in terms of income source and employment status, households are borrowing less,\u201d she said.\nThe central bank interviewed 5,670 consumers for the survey held on July 1-14, and 1,511 business owners for the survey held on July 22 to Sept. 15. \u2014 Beatrice M. Laforga", "date_published": "2021-09-24T20:11:18+08:00", "date_modified": "2021-09-24T20:11:43+08:00", "authors": [ { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/05/MALLGOERS_SMNORTH_10_VARCAS_180520.jpg", "tags": [ "Beatrice M. Laforga", "大象传媒" ] }, { "id": "/?p=398860", "url": "/top-stories/2021/09/24/398860/bsp-fully-awards-28-day-bills-9/", "title": "BSP fully awards 28-day bills", "content_html": "The Philippine central bank fully awarded the short-term securities it sold at an auction on Friday, even as rates rose on growing inflation fears.
\nThe Bangko Sentral ng Pilipinas (BSP) raised P110 billion in one-month bills, with total bids hitting P125.35 billion. The auction was 1.14 times oversubscribed.
\nThe short-term debt fetched an average rate of 1.723%, 0.4 basis point higher than a week earlier. Yields sought by banks during the auction were 1.703% to 1.825%.
\nThe central bank uses the securities and the term deposit facility to mop up excess liquidity in the financial system and guide market rates.
\nConcerns over elevated inflation at home and rising global oil prices pushed local yields higher, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
\nAt its policy-setting meeting on Thursday, the central bank raised its inflation outlook for the year to 4.4% from 4.1% on rising food prices.
\nInflation quickened to 4.9% in August from 4% a month earlier, the fastest in more than two years, bringing the eight-month average to 4.4%.
\nMr. Ricafort said an ongoing retail dollar bond offering could have siphoned off some of the excess liquidity in the financial system, which added upward pressure to 28-day bill yields.
\nThe Treasury bureau on Sept. 15 started offering five-year and 10-year retail dollar bonds, with coupon rates of 1.375% and 2.25%, respectively. It will end the sale on Oct. 1, unless closed earlier.
\nThe bureau raised an initial $866.2 million during the price-setting auction last week, more than twice as much as the initial offer of $400 million amid high demand.
\nIt sold $551.8 million worth of five-year dollar bonds and $314.4 million in 10-year dollar-denominated notes. \u2014 Beatrice M. Laforga
\n", "content_text": "The Philippine central bank fully awarded the short-term securities it sold at an auction on Friday, even as rates rose on growing inflation fears.\nThe Bangko Sentral ng Pilipinas (BSP) raised P110 billion in one-month bills, with total bids hitting P125.35 billion. The auction was 1.14 times oversubscribed.\nThe short-term debt fetched an average rate of 1.723%, 0.4 basis point higher than a week earlier. Yields sought by banks during the auction were 1.703% to 1.825%.\nThe central bank uses the securities and the term deposit facility to mop up excess liquidity in the financial system and guide market rates.\nConcerns over elevated inflation at home and rising global oil prices pushed local yields higher, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.\nAt its policy-setting meeting on Thursday, the central bank raised its inflation outlook for the year to 4.4% from 4.1% on rising food prices.\nInflation quickened to 4.9% in August from 4% a month earlier, the fastest in more than two years, bringing the eight-month average to 4.4%.\nMr. Ricafort said an ongoing retail dollar bond offering could have siphoned off some of the excess liquidity in the financial system, which added upward pressure to 28-day bill yields.\nThe Treasury bureau on Sept. 15 started offering five-year and 10-year retail dollar bonds, with coupon rates of 1.375% and 2.25%, respectively. It will end the sale on Oct. 1, unless closed earlier.\nThe bureau raised an initial $866.2 million during the price-setting auction last week, more than twice as much as the initial offer of $400 million amid high demand.\nIt sold $551.8 million worth of five-year dollar bonds and $314.4 million in 10-year dollar-denominated notes. \u2014 Beatrice M. Laforga", "date_published": "2021-09-24T20:08:05+08:00", "date_modified": "2021-09-24T20:21:50+08:00", "authors": [ { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/06/1000-peso-bills-052818.jpg", "tags": [ "Beatrice M. Laforga", "大象传媒" ] }, { "id": "/?p=398807", "url": "/banking-finance/2021/09/24/398807/bsp-earnings-up-250-in-seven-months-to-july/", "title": "BSP earnings up 250% in seven months to July", "content_html": "The Bangko Sentral ng Pilipinas (BSP) said its net income was P48.71 billion in the seven months to July, up 250%, as revenue nearly doubled due to a strong trading performance as well as interest and fee income.
\nAccording to preliminary BSP data, earnings grew from P45.44 billion posted in the first half.
\nRevenue rose 95.3% to P107.75 billion at the end of July and was up 12.4% from the first half total following a 42% gain in interest income to P65.59 billion.
\nMiscellaneous income, which includes trading gains or losses, fees, penalties and other operating income, rose to P42.16 billion from P8.98 billion a year earlier.
\nMonth-on-month, miscellaneous earnings rose 2%. These earnings have surpassed the full-year tally of P32.7 billion generated in 2020.
\nThe bank posted a net foreign exchange gain of P800 million, reversing a loss of P320 million a year earlier. The bulk of the gains happened in Juy after gains were only at P50 million as of the first half.
\nThe central bank’s overall expenses stood at P59.85 billion in the seven months, up 46.7% from a year earlier and up 18.4% from the first half.
\nInterest expense rose 39% to P34.67 billion and 16.4% against the first half tally. — Beatrice M. Laforga
\n", "content_text": "The Bangko Sentral ng Pilipinas (BSP) said its net income was P48.71 billion in the seven months to July, up 250%, as revenue nearly doubled due to a strong trading performance as well as interest and fee income.\nAccording to preliminary BSP data, earnings grew from P45.44 billion posted in the first half.\nRevenue rose 95.3% to P107.75 billion at the end of July and was up 12.4% from the first half total following a 42% gain in interest income to P65.59 billion.\nMiscellaneous income, which includes trading gains or losses, fees, penalties and other operating income, rose to P42.16 billion from P8.98 billion a year earlier.\nMonth-on-month, miscellaneous earnings rose 2%. These earnings have surpassed the full-year tally of P32.7 billion generated in 2020.\nThe bank posted a net foreign exchange gain of P800 million, reversing a loss of P320 million a year earlier. The bulk of the gains happened in Juy after gains were only at P50 million as of the first half.\nThe central bank’s overall expenses stood at P59.85 billion in the seven months, up 46.7% from a year earlier and up 18.4% from the first half.\nInterest expense rose 39% to P34.67 billion and 16.4% against the first half tally. — Beatrice M. Laforga", "date_published": "2021-09-24T18:31:52+08:00", "date_modified": "2021-09-24T18:31:52+08:00", "authors": [ { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/03/BSP-121218.jpg", "tags": [ "Beatrice M. Laforga", "Banking & Finance" ] } ] }