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PBCom eyes P2 billion from new bond issue
The Philippine Bank of Communications is looking to raise at least P2 billion, with an option to oversubscribe, from the first tranche of its new peso bond program......»»
IRR suspension: Delicate balance
Malacañang’s announcement of the suspension of implementing rules and regulations of the Maharlika Investment Fund on 18 October, ten days short to two months after its release, was no surprise to many. Critics of the sovereign wealth fund recently raised concerns about its legality by filing a legal challenge with the Supreme Court. They argued that the fund needed to be properly established in accordance with constitutional requirements. The petitioners said the economic viability assessment mandated by the Constitution was not fulfilled, and the creation of the MIF, under Republic Act 11954 or Maharlika Investment Fund Act of 2023 signed on 18 July, infringed upon the central bank’s independence. The President was surprised, not by the IRR suspension, but by how alarming news reports were interpreting the suspension order “somehow as a judgment of the rightness or wrongness of the Maharlika Fund.” When the IRR of a law is suspended, the guidelines and procedures necessary to put the law into effect are temporarily halted or are still being finalized. For all intents and purposes, the IRR provides specific details on how the law should be implemented, including the processes, requirements, and timelines involved. To say that more improvements could be made, specifically to the MIF’s organizational structure to make it a better organization, is deemed a sugar-coated narrative rather than owning up to the flaws or imperfections. If an IRR is suspended, it could indeed affect the law’s implementation. Without clear guidelines and procedures, government agencies and individuals may face uncertainties or difficulties in complying with the law’s requirements. This could lead to delays or a lack of implementation, and hinder the intended objectives of the law. The suspension of the IRR, which offers an opportunity to identify and rectify such unintended outcomes, is a temporary measure and does not necessarily mean the law is invalidated. It may be a temporary setback for various reasons, such as legal challenges, revisions, or policy changes. Once the IRR issues are resolved, the law’s implementation can proceed with clarity to facilitate its smooth execution. Within the realm of governance and legislation, a delicate balance exists between effective enforcement and essential flexibility. The recent suspension memorandum signed by Executive Secretary Lucas Bersamin exemplifies such circumstances — an afterthought that the IRR warrants a critical evaluation. Laws, like the Maharlika Investment Fund Act, are designed to address specific issues, but the world is dynamic and constantly evolving. What may have been effective at the time of enactment, though just a little more than a year ago, may need to be made more suitable and adequate in the face of changing realities. Suspending IRRs acknowledges the need for flexibility, allowing for a reassessment of the law’s applicability in the present context, and ensuring that the legislation remains relevant and adaptive to the challenges of an ever-changing society. On to the end of 2023 — a timeline set by the President for the MIF to be operational, the thorough study of the IRR must engage relevant stakeholders, including government agencies, legal experts and affected parties, to gather diverse perspectives and ensure an inclusive decision-making process. Only by involving those directly impacted by the law can the suspension’s objective be tailored to address their concerns, leading to a more equitable and effective legal framework for the controversial MIF, devoid of self-serving interests. The post IRR suspension: Delicate balance appeared first on Daily Tribune......»»
Phl economy still strongest this year — RCBC
The Philippine economy will remain among Asia’s strongest in the fourth quarter despite a possible higher interest rate because of strong consumer demand for certain products and services and more employed Filipinos, the chief economist of Rizal Commercial Banking Corporation said Saturday. “This growth forecast is still among the fastest in the region because our economy is doing well,” RCBC’s Michael Ricafort said. The World Bank recently downgraded this year’s Philippine economic growth to 5.6 percent from 6 percent due to inflation risks, apart from lower government spending and weaker demand for exports. However, it is still higher than China’s 5.1 percent, Indonesia’s 4.9 percent, and Malaysia’s 4.3 percent growth forecast. Ricafort said the Bangko Sentral ng Pilipinas (BSP) might raise its policy rate this year to slow inflation to 4 percent by year-end after it accelerated again to 6.1 percent last month. “The BSP is working to bring down prices of goods and services. As an unintended consequence, the economy could slow down. Borrowing costs for business owners also increase and consumer demand weakens,” he said. Ricafort said global oil prices have started falling which could discourage the central bank from raising its rate drastically. “Global oil prices have declined to $82 to $83 per barrel from a peak of $95 per barrel last month or since the war between oil-rich countries Russia and Ukraine began,” the economist said. He also expected a downtrend in rice prices starting this month as he said local farmers have begun collecting fresh harvests. “Inflation quickened last month mainly from higher prices of rice which accounted for nearly 9 percent of the inflation basket and grew 17 percent year-on-year,” Ricafort said. While a higher interest rate aims to slow consumption, Ricafort said the continued flow of remittances from overseas Filipino workers, or at least 3 percent growth yearly will still support substantial levels of consumer spending, especially during the Christmas season. “That is more than $40 billion a year. That’s the fourth largest in the world after India, China and Mexico,” the economist said. He added more Filipinos or 800,000 could earn from business process outsourcing or BPO this year as the industry’s revenue could rise from $32.5 billion to $59 billion based on data from the Contact Center Association of the Philippines. Another growth area is tourism, which Ricafort said saw 4 million foreign visitors last month, nearing the 4.8 million full-year target of the government. He added higher productivity among Filipinos is also expected as the country’s unemployment rate declined to 4.4 percent in August from 4.8 percent in July, based on data from the Philippine Statistics Authority. Moving forward, Ricafort said the government must improve science and technology education for higher quality jobs and increase spending on infrastructure amid the full reopening of most economies. “We are now fully reopened. Students are also back in schools which encourages putting up food businesses. Labor market in the US also improved which will affect export trade,” he said. Ricafort added the government could continue distributing financial and other assistance to farmers to control inflation. He believed the inflation rate will approach 3 percent next year, close to the ideal 2 percent for healthier economic growth. The post Phl economy still strongest this year — RCBC appeared first on Daily Tribune......»»
Slower Q2 growth as inflation bites
The economy may have slowed further in the second quarter, private economists said, as persistent inflation and higher interest rates continued to affect consumer spending. Forecasts in the survey conducted by Daily Tribune spanned from 5.6 percent to 6.1 percent, yielding a median estimate of 5.9 percent gross domestic product, or GDP, growth from April to June this year. The economy grew by 6.4 percent in the first quarter, the weakest growth rate since the first quarter of 2021, when it contracted by 3.8 percent. This year’s first quarter growth is slower than the 8 percent increase in the same period last year and the 7.1 percent growth in the preceding quarter. The Philippine Statistics Authority is scheduled to report the second quarter GDP growth data on Thursday, 10 August. Security Bank: 6.1% growth Security Bank’s senior assistant vice president and chief economist Robert Dan Roces expects the Philippine economy to grow by 6.1 percent in the second quarter. He added growth may have been driven by the still robust consumer spending and improved exports. “Private investments continued in the second quarter, supporting economic activity, while low government consumption served as a dampener,” Roces said in an emailed commentary. “The downside risks to growth include the risks to sticky inflation, elevated interest rates, and weaker global economic growth,” Roces added. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., who predicted a 6 percent growth, noted the stronger consumer spending and election-related expenditure amid easing pandemic restrictions, but not without flagging the impact of inflation in the second quarter. He also said that the lower individual income tax rates that went into effect earlier this year might have caused the increase in consumer spending. “Lower individual income tax rates starting January 2023 for most income brackets as part of the TRAIN Law, could lead to increased consumer spending, which accounts for at least 75 percent of the economy, and, in turn, lead to faster economic growth,” Ricafort told Daily Tribune in a Viber Message. China Banking Corp. chief economist Domini Velasquez expects a 5.9 percent GDP growth due to some factors, including higher inflation, which could have offset post-pandemic spending, and lukewarm government spending. “We saw substantial increases in infrastructure spending, but both PS and MOOE growth remained lukewarm,” Velasquez said in a Viber message. “There is a need to hasten government spending in identified agencies lagging behind.” Moving forward, Velasquez expects continued moderation in economic activities as elevated policy rates impact business and household spending. In the third quarter of this year, Velasquez expects the country’s economy to grow to around 5.5 percent and full-year growth to average 5.8 percent, just shy of the government’s 6.0 percent low-end target. In a virtual briefing last 19 July, First Metro Investment Corp. and the University of Asia and the Pacific that the Philippine economic growth likely slowed to 5.6 percent in the second quarter. “I do expect a slowdown in the second quarter to 5.6 percent,” UA&P economist Victor Abola said in the virtual briefing. “It’s really the carryover of inflation to the second quarter; even though it’s lower, people are still a bit more reluctant,” he added. While consumption is expected to slow down in the second quarter, Abola expects a rebound in the second half of the year. The post Slower Q2 growth as inflation bites appeared first on Daily Tribune......»»
Inflation slowdown prods loans appetite
Economists expect the demand for loans to rise this year as inflation has eased further and prospects of stable interest rates strengthen. Inflation slowed further to 4.7 percent in July from 5.4 percent in June and the peak of 8.7 percent in January due to cheaper prices of food, housing, fuels and utilities, data from the Philippine Statistics Authority revealed. However, prices in restaurants and accommodations increased to 10.1 percent from 9.8 percent in Metro Manila. Growth was likely brought by high demand for food services, which signals strong financial capacities among consumers. “Strong demand from consumers is probably preventing this from falling faster as they continue to spend heavily on these services after the pandemic,” Jun Neri, chief economist of Bank of the Philippine Islands, said. In a text message to the Daily Tribune, BDO Unibank Inc.’s official statement added that “loan demand may be driven more by consumer demand and potential infrastructure projects.” Prices of most goods and services or core inflation, which excludes volatile items like food and gas, fell to 6.7 percent from 7.4 percent. With the possible inflation downtrend, economists said consumers could have more money to spend and commercial banks could charge more manageable costs of borrowing based on the policy rate of Bangko Sentral ng Pilipinas or BSP. “The current path of inflation gives BSP the space to keep rates steady until the end of the year,” Neri said. 2% to 4% inflation BSP aims to pull inflation within the range of 2 percent and 4 percent this year by adjusting its policy rates. Its Monetary Board will announce its next move on 15 August after keeping the rate at 6.25 percent. While BSP often matches the move of the US Federal Reserve, which increased its rate by 0.25 basis point last month, local economists said imposing several hikes this year is unlikely despite possible higher inflation from costlier food prices caused by the recent typhoon and El Nino. Neri said these weather disturbances could reduce food supplies, especially rice and increase their prices through weaker agricultural production and less imports. “El Nino is a global phenomenon that could affect the food production of other countries. India recently announced a ban on the export of non-basmati white rice, while a Thai government agency has encouraged farmers to plant less rice to save on water,” he said. Dan Roces, chief economist of Security Bank Corp., believed a likely small increase in BSP policy rate would be enforced this year as bank executives wait for its full disinflationary effect. “With this, loan rates and demand may still exhibit some growth as monetary policy operates with a lag. A pronounced slowdown in loans, if any, may occur in 2024 should monetary policy remain elevated for long.” Michael Ricafort, chief economist of Rizal Commercial Banking Corp., added that stable rates for this year is possible as long as there will be no major negative turns in the economy. “The markets recently priced in lower odds of another 0.25 Federal Reserve’s rate hike for the rest of 2023, thereby supporting a possible pause on Fed and local policy rates, as supported by inflation moving closer to the inflation target of the central banks for both countries.” The post Inflation slowdown prods loans appetite appeared first on Daily Tribune......»»
Phl economic growth may slow in Q2
The Philippine economy may have slowed further in the second quarter of 2023, private economists said, as persistent inflation and higher interest rates continue to affect consumer spending. Forecasts in the survey conducted by Daily Tribune spanned from 5.6 to 6.1 percent, yielding a median estimate of 5.9 percent gross domestic product (GDP) growth from April to June this year. For context, the Philippine economy grew by 6.4 percent in the first quarter, the weakest growth rate since the first quarter of 2021, when it contracted by 3.8 percent. This year's first quarter GDP growth is slower than the 8 percent increase in the same period last year and the 7.1 percent growth in the preceding quarter. The Philippine Statistics Authority (PSA) is scheduled to report the second quarter GDP growth data on Thursday, 10 August. Security Bank's Senior Assistant Vice President (SAVP) and Chief Economist Robert Dan Roces, who expects the Philippine economy to grow by 6.1 percent in the second quarter of 2023, said the growth may have been driven by the still robust consumer spending and improved exports. "Private investments continued in the second quarter, supporting economic activity, while low government consumption served as a dampener," Roces said in an emailed commentary. "The downside risks to growth include the risks to sticky inflation, elevated interest rates, and weaker global economic growth," Roces added. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., who expects a 6.0 percent growth, noted the stronger consumer spending and election-related expenditure amid looser pandemic restrictions, but not without flagging the impact of inflation in the second quarter this year. He also said that the lower individual income tax rates that went into effect earlier this year might have caused the increase in consumer spending. "Lower individual income tax rates starting January 2023 for most income brackets as part of the Train Law, could lead to increased consumer spending, which accounts for at least 75 percent of the economy, and, in turn, lead to faster economic growth," Ricafort told Daily Tribune in a Viber Message. Meanwhile, China Banking Corp. chief economist Domini Velasquez expects a 5.9 percent GDP growth due to some factors, including higher inflation, which could have offset post-pandemic spending, and lukewarm government spending. "We saw substantial increases in infrastructure spending, but both PS and MOOE growth remained lukewarm," Velasquez said in a Viber message. "There is a need to hasten government spending in identified agencies lagging behind." Moving forward, Velasquez expects continued moderation in economic activities as elevated policy rates impact business and household spending. In the third quarter of this year, Velasquez expects the country's economy to grow to around 5.5 percent and full-year growth to average 5.8 percent, just shy of the government's 6.0 percent low-end target. In a virtual briefing last 19 July, First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) that the Philippine economic growth likely slowed to 5.6 percent in the second quarter. "I do expect a slowdown in the second quarter to 5.6 percent," UA&P economist Victor Abola said in the virtual briefing. "It's really the carryover of inflation to the second quarter; even though it's lower, people are still a bit more reluctant," he added. While consumption is expected to slow down in the second quarter, Abola expects a rebound in the second half of the year. The post Phl economic growth may slow in Q2 appeared first on Daily Tribune......»»
Loan demand up this year on slower inflation
Economists see demand for loans increasing this year as inflation has eased further and prospects of stable interest rates strengthen. Inflation slowed further to 4.7 percent in July from 5.4 percent in June and the peak of 8.7 percent in January due to cheaper prices of food, housing, fuels, and utilities, data from the Philippine Statistics Authority revealed Friday. However, prices in restaurants and accommodations increased to 10.1 percent from 9.8 percent in Metro Manila. Economists said the growth was likely brought by high demand for these services, which signals strong financial capacities among consumers. “Strong demand from consumers is probably preventing this from falling faster as they continue to spend heavily on these services after the pandemic,” Jun Neri, chief economist of the Bank of the Philippine Islands, said Friday. In a text message to Daily Tribune, BDO Unibank Inc.’s official statement added that “loan demand may be driven more by consumer demand and potential infrastructure projects.” Prices of most goods and services or core inflation, which excludes volatile items like food and gas, fell to 6.7 percent from 7.4 percent. With the possible inflation downtrend, economists said consumers could have more money to spend and commercial banks could charge more manageable costs of borrowing based on the policy rate of Bangko Sentral ng Pilipinas or BSP. “The current path of inflation gives BSP the space to keep rates steady until the end of the year,” Neri said. BSP aims to pull inflation within the range of 2 percent and 4 percent this year by adjusting its policy rates. Its Monetary Board will announce its next move on 15 August after keeping the rate at 6.25 percent. While BSP often matches the move of the US Federal Reserve, which increased its rate by 0.25 basis point last month, local economists said imposing several hikes this year is unlikely despite possible higher inflation from costlier food prices caused by the recent typhoon and El Nino. Neri said these weather disturbances could reduce food supplies, especially rice and increase their prices through weaker agricultural production and fewer imports. “El Nino is a global phenomenon that could affect the food production of other countries. India recently announced a ban on the export of non-basmati white rice, while a Thai government agency has encouraged farmers to plant less rice to save on water,” he said. Dan Roces, chief economist of Security Bank Corp., believed a likely small increase in the BSP policy rate would be enforced this year as bank executives wait for its full disinflationary effect. “With this, loan rates and demand may still exhibit some growth as monetary policy operates with a lag. A pronounced slowdown in loans, if any, may occur in 2024 should monetary policy remain elevated for long.” Michael Ricafort, chief economist of Rizal Commercial Banking Corp., added that stable rates for this year are possible as long as there will be no major negative turns in the economy. “The markets recently priced in lower odds of another 0.25 Federal Reserve’s rate hike for the rest of 2023, thereby supporting a possible pause on Fed and local policy rates, as supported by inflation moving closer to the inflation target of the central banks for both countries.” The post Loan demand up this year on slower inflation appeared first on Daily Tribune......»»
US flags Manila Bay reclamation project tied to a Chinese firm
The United States government has expressed concerns over the “negative long-term and irreversible” impact on the environment of the ongoing reclamation projects in Manila Bay which are allegedly linked to a Chinese construction firm. In a statement on Wednesday, US Embassy in the Philippines spokesperson Kanishka Gangopadhyay said the reclamation projects in Manila Bay may affect the resilience to natural hazards of the country’s capital region and nearby areas, as well as to its commerce. Gangopadhyay also particularly mentioned reclamation projects handled by China Communications Construction Co., a firm that was added to the US Department of Commerce’s Entity List for its role in helping the Chinese military construct and militarize artificial islands in the South China Sea. “The company has also been cited by the World Bank and the Asian Development Bank for engaging in fraudulent business practices,” he said. Of 32 ongoing reclamation projects in Manila Bay, China Communications Construction Co., or CCCC, is involved in two projects such as the Pasay Harbor City Reclamation Project and Manila Waterfront City Development Project. Earlier this year, the state-run Chinese construction firm, vowed to make more investments in the Philippines, shortly after its officials met with President Ferdinand Marcos Jr. in a courtesy call in Malacanang. Aside from its alleged hand in the reclamation projects in Manila Bay, CCCC is also supporting other infrastructure projects in the Philippines, including the Samal Island-Davao City Connector Project and North & South Harbor Bridge, among others. The Presidential Communications Office previously said that the CCCC proposed to Marcos the construction of the 270-km Laoag City-Rosario City Highway Project, Juncao Technology Demonstration Center, and a Juncao Industrial Park for Juncao grass cultivation and processing. Juncao is a hybrid of the Giant Napier Grass developed by the Fujian Agriculture and Forest University from eight different types of grass through tissue culture. The proposed Juncao technology project, once approved, will be funded through Chinese foreign aid, PCO said. According to the Embassy, the US government would continue "to support high quality, sustainable, and transparent investments to benefit the Filipino people." Likewise, it stressed that they would continue to engage with the appropriate authorities on the matter. The Daily Tribune has sought comments from the Department of Foreign Affairs regarding the issue, but it has yet to respond as of press time. The post US flags Manila Bay reclamation project tied to a Chinese firm appeared first on Daily Tribune......»»
Malnutrition, hunger shade Phl growth
The Asian Development Bank’s outlook for the Philippines remains unchanged since April, maintaining that the country’s economy would expand by 6.0 percent for the remainder of the year and grow by 6.2 percent in 2024. In April, Kelly Bird, ADB country director for the Philippines, noted that the economy was in expansion mode after the gross domestic product grew 7.6 percent throughout 2022. “It (Philippine economic growth) is expected to moderate this year (2023) from the previous year’s forecast-beating outturn, but will remain on a healthy expansion mode underpinned by rising domestic demand and a recovery in services, particularly tourism,” he said. In the latest update of its quarterly Asian Development Outlook 2023 report, the ADB said domestic demand and services continue to drive growth in Southeast Asia, with many economies in the region, including the Philippines’, benefiting from strong tourism recovery. It said robust investment and private consumption, along with rising employment, growth in production and retail sales, and upbeat activity in private and public construction, is propelling the Philippine economy forward, making the country a strong candidate for the fastest-growing economy in the region in 2023, even surpassing Singapore’s and Vietnam’s. Filipinos look forward to ADB’s forecast that growth will remain strong, albeit slowed by global headwinds, high inflation, and tighter monetary policy. GDP growth should pick up even more as the external environment improves. Hopes are pinned on private consumption and investment to continue to expand, though easing from 2022’s brisk pace while household spending will be buoyed by rising employment and steady remittances from Philippine workers overseas. The bank’s outlook on the Philippine economy should get President Marcos into a pumped-up mood as he gets ready to address the country in his 2nd State of the Nation address on Monday. But ADB’s sobering notes on hunger and malnutrition threaten to dim whatever bright disposition he may have at the moment. In its report, the ADB notes that despite rapid economic growth in recent years, these “impressive gains” along with whatever efforts to reduce poverty have not lowered hunger, particularly among people in lower income levels. The ADB cites data from the UN Food and Agriculture Organization indicating the prevalence of food insecurity in the Philippines, averaging 43.8 percent of the total population from 2019 to 2021 with 5.2 percent of the people undernourished. An Expanded National Nutrition Survey in 2021 revealed that under-nutrition rates were “very high,” with 26.7 percent of children under five years old stunted. Among school-age children (5-10 years old), the stunting rate was 19.7 percent and much higher among the poorest quintile at 32.7 percent. Alarming figures indicate that chronic malnutrition and stunting are strongly linked to disease and premature death; they adversely affect crucial stages of development (of children), causing cognitive and behavioral deficits, learning disabilities and ultimately a sub-optimal and uncompetitive labor force. The government’s response, the ADB observed, was short-term measures providing social support to vulnerable groups and temporarily easing import restrictions on some agricultural products. And this note should be of particular concern to the President, who remains unmoved by calls to designate a full-time, hands-on expert thoroughly steeped in agriculture at the agency. These data are also alarming: Agriculture growth in the Philippines has underperformed for the past two decades; it grew 3.5 percent on average annually from 2000 to 2010, then by 1.5 percent from 2011 to 2022; Agriculture’s share of GDP has declined from over 15 percent in early 2000 to an average of 9 percent in the past five years, with one-fifth of employment remaining in agriculture; and today’s Philippine agriculture labor productivity continues to lag behind its peers in the Southeast region. The ADB recommended that government strengthens food security and nutrition through social protection responses. Data on poverty incidence showed it declined from 23.5 percent of the population in 2015 to 16.7 percent in 2018 but rose again to 18.1 percent in 2021 because of the pandemic. As the President prepares to take on another year in office, we hope that the President is aware of the urgencies that need to be effectively tackled in the sector he insists on overseeing and of the sociopolitical costs and the not-so-flattering image the country — and the world — would have of his leadership if he leaves these issues substantially unresolved. The post Malnutrition, hunger shade Phl growth appeared first on Daily Tribune......»»
Multiple grammars of land reform law
The newly-minted Republic Act No. 11953 is a class legislation, at least insofar as it is pro-landless poor, but that is not to say that the landowners will not be justly compensated in the same breath. The latter may turn out to be not even the “silent losers” in this highly experimental stroke of legislative genius. Some cynics might even suspect it to be Adam Smith’s concept of the “invisible hand.” Recall that in another imminent enactment, namely, the “Maharlika Investment Fund,” the Land Bank of the Philippines will contribute P50 billion as its equity as if this will not badly affect its capital build-up as a government financing institution. With the New Agrarian Emancipation Act of 2023, the P58 billion that agrarian reform beneficiaries owed to Land Bank was, in effect, written off. It is as though this huge sum of “foregone revenues” coupled with the seed money it will download to the MIF would still allow Land Bank to sail on an even keel. Pareto efficiency has become the name of the game — “an economic state where resources cannot be reallocated to make one better off without making at least one individual worse off.” How clever of the government to turn Land Bank into neither victim nor villain. Never strange bedfellows, the Department of Agrarian Reform and Land Bank will formulate the necessary Implementing Rules and Regulations. Meanwhile, there’s always a lone voice in the Lower Chamber who plays harbinger of unfolding scenarios. He calls the new land reform law the “best and biggest accomplishment’ of FM Jr. in his first year, it being “historic in scale, in world view, and in what it will bring to the people,” and an “important step toward rural and agrarian justice.” If that were not preaching to the choir, what is? As it now graphically appears, the P500-billion capitalization, “fund-raising project” if you will, for the Maharlika Investment Corporation is akin to an empty vault that has to be filled with tons of money. We are all led to believe that funds create wealth when it should be the other way around. As Jim Morrison says, “Whoever controls the media, controls the mind.” No less than the House Speaker plays poster boy for the administration’s policy agenda. Recall that Executive Order No. 4 signed on the President’s 65th birthday (i.e. 13 September 2022) is “implementing a moratorium on the payment of the principal obligation and interest of the amortization due and payable by agrarian reform beneficiaries.” Wonder how a supposedly one-year relief from the debt burden has been lifted forever when RA No. 11953 supersedes EO No. 4 as a mere placeholder. In the one-year freeze or if not enabling Land Bank to collect payment from the farmer-beneficiaries of the Comprehensive Agrarian Reform Program, the former loses billions in revenue. What adds insult to injury in the context of the new policy configuration is that all 30 annual amortizations will be written off. How well Land Bank can absorb the shock seems behind us. With the new emancipation law, the good President has written off P58 billion, benefiting around 654,000 ARBs and involving a total of 1.18 million hectares of awarded lands. When FM Jr. thought of “continuing economic relief to ARBs” to help them “recover and ensure food security in the county amidst global uncertainties,” the requisite impact report implementing the order has become moot and academic. That original Senate Bill No. 1112 authored by the President’s senator-sister is meant to emancipate ARBs from the debt burden through the free award of agricultural lands — individually titled rather than collectively; zero compensation for the Land Bank instead of P58 billion in receivables (i.e. amortization payments); a CLOA free of the 10-year restriction; and condonation and individual titling that will complete the emancipation of landless farmers. Once duly titled — fast-forwarding to the future — into whose hands will the agricultural lands fall? The post Multiple grammars of land reform law appeared first on Daily Tribune......»»
NEDA: El Niño price impact seen minimal
The National Economic and Development Authority on Saturday said it expects a minimal impact of El Niño on food prices as government agencies streamline efforts to address the looming drought. In a forum on Saturday, NEDA Undersecretary Rosemarie Edillon emphasized that farmers, especially of rice, have been accustomed to the effects of El Niño and have been using technologies and agricultural practices to cope. “Currently, we do not see a huge impact of El Niño on the country’s inflation or economy. El Niño is a usual occurrence, happening three years in and three years out. Filipinos and the government agencies already know what to do to soften its impact.” The Department of Agriculture, for example, has said officials plan to allocate funds for cloud seeding to induce rain and to distribute pumps to small-scale farmers. They will also promote alternative farming methods and crop diversification. The department is also mapping out the areas to be most hit by drought, which is expected to start this month and last until early next year. Only slight drought Officials said farmers in western Luzon can still plant crops as the southwest monsoon or habagat is seen to still bring rain to this area. The Task Force on El Niño has been formed to include the Department of Health, Department of Science and Technology, Department of Trade and Industry, National Water Resources Board and National Irrigation Administration, among others. Sally Duquesa, general manager of Pindangan Primary Multi-Purpose Cooperative in Tarlac, told Daily Tribune farmers in the province have been planting less due to insufficient irrigation, aside from the higher prices of farming inputs. She said they were now only producing 180 bags of rice compared to 200 bags in the past harvesting seasons, which usually occur in April and October. Jun Neri, chief economist at the Bank of the Philippine Islands, said the government must accelerate efforts to address El Niño to ensure enough supply of agricultural products to prevent a heavier reliance on imports which could push up food prices. “The most significant risk is food security, especially given the looming El Niño. Importing food from abroad might become less effective in addressing supply problems since El Niño is expected to affect other parts of the world,” he said. The post NEDA: El Niño price impact seen minimal appeared first on Daily Tribune......»»
Edict writes off farmers’ debts
President Ferdinand Marcos Jr. on Friday signed into law Republic Act 11953 relieving thousands of farmers of their long-standing debts associated with the Comprehensive Agrarian Reform Program. During the signing ceremonies in Malacañang, Marcos explained that RA 11953, or the New Agrarian Emancipation Act or NAEA, condones all unpaid amortizations, including interest and surcharges, for awarded lands. The signing came ahead of the President’s second State of the Nation Address on 24 July. “Let us continue agrarian reform not only through land distribution and providing land to farmers who still do not have any but also to completely free them from debt that hinders their full ownership of the land given to them by the government,” Marcos said in his speech. “Free land distribution must go hand in hand with broadening the provision of credit facilities and support services in the form of farm inputs, equipment, and facilities for our farmers, as well as the construction of more farm-to-market roads,” he said. Marcos thanked Congress for swiftly passing the bill. He also acknowledged his sister, Senator Imee Marcos, for her efforts in getting the bill passed in the Senate. “We had waited for several administrations, and yet we had not accomplished this. It is a great honor for me to stand before you and announce that we will now make this into law, granting and liberating our farmers and agrarian reform beneficiaries from their burdensome debts,” the President said. Loan obligations The law applies to farmers and farm workers who were granted land under Presidential Decree No. 27 but still had outstanding loan obligations to both the Land Bank of the Philippines and private landowners. The measure forgives the total principal loan amount of P14.5 billion, which includes accrued interest, penalties and surcharges, for 263,622 beneficiaries whose names were submitted to Congress by the Land Bank of the Philippines. Under the agrarian reform law, beneficiaries were obligated to make annual installment payments for the land they received, at 6 percent interest, over a maximum of 30 years. The total unpaid debt that rose to P57.56 billion will be absolved, ultimately benefiting 610,054 agrarian reform beneficiaries who cultivate approximately 1.173 million hectares of land. ‘Not unfair’ Agrarian Reform Secretary Conrado Estrella III said the New Agrarian Emancipation Law is “not unfair” to the farmers who had repaid their agrarian debts before the enactment of the law, considering the changes that had occurred over time. Estrella, who was present at the signing, said, “In the past, it was easier for our farmers to pay because they were earning. Now, there have been numerous developments here in our country and around the world.” “The prices of farm machinery, equipment, and other inputs have increased — this is happening worldwide — which has made the lives of our farmers more difficult. Additionally, we experienced a pandemic,” he said. Estrella said RA No.11953 was a priority legislation that the President asked Congress to pass in his first State of the Nation Address on 25 July 2022. Broader services “By freeing farmers from the agrarian debt, and ensuring broader support services and credit facilities, the Marcos administration has given more resources to our farmers to increase the productivity of their farms and uplift the quality of their lives,” Estrella said. Finance Secretary Benjamin Diokno, who was also at the signing ceremony, assured the public the loan condonation program would not affect government revenues. Diokno said the program is separate from the government’s fiscal plans for the next five years. The program is a form of social justice and will benefit many agrarian reform beneficiaries, he added. “When running a government, we consider not only efficiency but also social justice, so this falls under social justice,” Diokno said. He said the government will only collect paid loans from the beneficiaries, adding that the program will be implemented over time. The post Edict writes off farmers’ debts appeared first on Daily Tribune......»»
What experts want to hear during Marcos’ SONA this month
Economists said they are most interested to hear the plans of President Ferdinand Marcos Jr. on managing inflation, creating more jobs and his assessment of the proposed Maharlika Fund at his second State of the Nation Address on 24 July. “I’m looking forward to his plans on inflation and competitiveness. Inflation is a day-to-day concern of the ordinary Pinoy. You and I feel it,” Economics Prof. Ser Peña-Reyes of the Ateneo de Manila University’s Department told The Daily Tribune. The government aims to curb the rise in prices of goods and services within the inflation range of 2 percent to 4 percent this year. Last month, inflation figured at 5.4 percent, the lowest since June last year. In general, food as a basic need was cheaper as its inflation rate decreased to 6.7 percent in June from 7.4 percent in May. However, prices of certain food items, namely rice, fish and vegetables were up. Being also the agricultural chief, Peña-Reyes said Marcos must inform related industries and consumers of his strategies for boosting agricultural supplies and ensuring their efficient delivery to the markets. He said this should help meet the consumer demand which prevents price hikes. “Farmers and fishermen need to be organized to achieve economies of scale, and also be given access to credit, inputs, technology, and markets to make them competitive.” He added, “We really need to have a coordinated effort, similar to what our ASEAN neighbors are doing, where the entire value chain, from farm to fork, is covered.” Prof. Ramon Clarete of the University of the Philippines (UP) said he is keen on hearing from the president, the progress on clustering of farm lots nationwide as a way to increase agricultural production. “The president should end policies in the Comprehensive Agrarian Reform Law of 1988 or CARP and aggressively express support for cluster farming by small farmers.” This is echoed by Philippine Chamber of Commerce and Industry President George Barcelon, who said the government must consolidate small-scale farmers to achieve the economies of scale or increasing harvests at the lowest cost of production possible, through the use of machines and delivery of group assistance, such as loans and skills training, to farmers cooperatives and associations. “Three hectares of farmland allowed by CARP is small land for families of farmers, unlike in other countries. As we invest in machinery, research and development, the government must also allow bigger land for farmers to encourage productivity.” Barcelon added Marcos should also elaborate on his plan on “rightsizing to lessen bureaucracy and corruption.” Rightsizing ensures government agencies perform more efficiently and achieve certain objectives by implementing one or a combination of measures such as reducing the workforce, reorganizing the management team, or hiring new employees. However, he stressed rightsizing should not be confused with reducing government expenses as “it is more about gaining the most benefits for the government and the public in the soundest way.” According to the World Competitiveness Yearbook by the Switzerland-based Institute of Management Development, the Philippines ranked the lowest in government efficiency among 64 countries at 52nd this year from 48th last year. “Competitiveness is very important because it affects our attractiveness as an investment destination for foreign firms to expand their operations here, which would also affect our labor productivity,” Ateneo Prof. Peña-Reyes said. Aside from these, UP Prof. Clarete said he is awaiting statements from the president, which would indicate his support or disapproval of the proposed Maharlika Fund. Proponents of this fund said it will help increase the financial resources of the government and build more infrastructure projects through proceeds from a mix of investment channels such as stocks and bonds. Capital fund sources will come from the Bangko Sentral ng Pilipinas (BSP), Land Bank of the Philippines, and the Development Bank of the Philippines. “In my view, the country is taking a big risk. Poor governance is a problem and remains to be so,” Clarete warned. “It may not happen in this administration but future administrations with nothing to prove as they only inherit the management of it may create innovative ways of stealing from the fund masked as failed investments.” The post What experts want to hear during Marcos’ SONA this month appeared first on Daily Tribune......»»
What experts want to hear during Marcos’s SONA this month
Economists said they are most interested to hear the plans of President Ferdinand Marcos Jr. on managing inflation, creating more jobs and his assessment of the proposed Maharlika Fund at his second State of the Nation Address on 24 July. “I’m looking forward to his plans on inflation and competitiveness. Inflation is a day-to-day concern of the ordinary Pinoy. You and I feel it,” Economics Prof. Ser Peña-Reyes of the Ateneo de Manila University’s Department told The Daily Tribune. The government aims to curb the rise in prices of goods and services within the inflation range of 2 percent to 4 percent this year. Last month, inflation figured at 5.4 percent, the lowest since June last year. In general, food as a basic need was cheaper as its inflation rate decreased to 6.7 percent in June from 7.4 percent in May. However, prices of certain food items, namely rice, fish and vegetables were up. Being also the agricultural chief, Peña-Reyes said Marcos must inform related industries and consumers of his strategies for boosting agricultural supplies and ensuring their efficient delivery to the markets. He said this should help meet the consumer demand which prevents price hikes. “Farmers and fishermen need to be organized to achieve economies of scale, and also be given access to credit, inputs, technology, and markets to make them competitive.” He added, “We really need to have a coordinated effort, similar to what our ASEAN neighbors are doing, where the entire value chain, from farm to fork, is covered.” Prof. Ramon Clarete of the University of the Philippines (UP) said he is keen on hearing from the president, the progress on clustering of farm lots nationwide as a way to increase agricultural production. “The president should end policies in the Comprehensive Agrarian Reform Law of 1988 or CARP and aggressively express support for cluster farming by small farmers.” This is echoed by Philippine Chamber of Commerce and Industry President George Barcelon, who said the government must consolidate small-scale farmers to achieve the economies of scale or increasing harvests at the lowest cost of production possible, through the use of machines and delivery of group assistance, such as loans and skills training, to farmers cooperatives and associations. “Three hectares of farmland allowed by CARP is small land for families of farmers, unlike in other countries. As we invest in machinery, research and development, the government must also allow bigger land for farmers to encourage productivity.” Barcelon added Marcos should also elaborate on his plan on “rightsizing to lessen bureaucracy and corruption.” Rightsizing ensures government agencies perform more efficiently and achieve certain objectives by implementing one or a combination of measures such as reducing the workforce, reorganizing the management team, or hiring new employees. However, he stressed rightsizing should not be confused with reducing government expenses as “it is more about gaining the most benefits for the government and the public in the soundest way.” According to the World Competitiveness Yearbook by the Switzerland-based Institute of Management Development, the Philippines ranked the lowest in government efficiency among 64 countries at 52nd this year from 48th last year. “Competitiveness is very important because it affects our attractiveness as an investment destination for foreign firms to expand their operations here, which would also affect our labor productivity,” Ateneo Prof. Peña-Reyes said. Aside from these, UP Prof. Clarete said he is awaiting statements from the president, which would indicate his support or disapproval of the proposed Maharlika Fund. Proponents of this fund said it will help increase the financial resources of the government and build more infrastructure projects through proceeds from a mix of investment channels such as stocks and bonds. Capital fund sources will come from the Bangko Sentral ng Pilipinas (BSP), Land Bank of the Philippines, and the Development Bank of the Philippines. “In my view, the country is taking a big risk. Poor governance is a problem and remains to be so,” Clarete warned. “It may not happen in this administration but future administrations with nothing to prove as they only inherit the management of it may create innovative ways of stealing from the fund masked as failed investments.” The post What experts want to hear during Marcos’s SONA this month appeared first on Daily Tribune......»»
Losing cash while holding it
Consulting firm Manulife Investment Management or MIM has presented a financial paradox in that an investor loses money kept in the vault for too long. Investors are increasingly concerned about market risks because of factors such as the increases in US Federal Reserve interest rates, individual banking crises, and increasingly serious geopolitical risks. As a result, many investors are reluctant to invest in the market, and some even sell their stocks and bonds to minimize losses. In response, banks offer higher deposit rates to appeal to investors, who choose to hold money in the form of term deposits. MIM, however, warned in a report that holding cash may seem like a good option during periods of market volatility, but cash remains vulnerable to inflation, especially in the current macroeconomic environment. Inflation erodes the purchasing power of cash, meaning it will buy less with it in the future. A simple calculation to prove the difference between holding cash versus stocks: Between 2011 and 2021, the return on cash (as measured by the annualized return of the three-month US Treasury bill) was 0.47 percent. Adjusted for inflation, which was 2.17 percent on average during those 10 years, the return was minus 1.7 percent. Put simply, $100,000 in Treasury bills in 2011 would have had $84,243.26 of buying power 10 years later. Conversely, over the same 10-year period, a $100,000 investment in the S&P/TSX composite dividend index, the stocks benchmark in Canada, would have resulted in $200,797.37 of buying power, thanks to its inflation-adjusted annualized return of 7.22 percent. In addition, investors should also consider how real interest rates (i.e. bank deposit rates minus inflation) affect their returns. From January to February 2023, the annual nominal interest rate on three-month term deposits in most Asian countries or regions varied from 2.5 percent to 5.4 percent. Then there’s deposit rates However, when adjusted for changes in the consumer price index during the same period, the real three-month time deposit annual interest rate ranged from negative 5.2 percent to 1.09 percent. “History tells us that equities, bonds, and some income-oriented investments have the potential to deliver higher long-term returns than cash and could potentially outstrip inflation,” MIM’s report stated. From 2009 to 2022, compounded annual nominal returns for Asian equities and bonds were 8.15 percent and 4.38 percent, respectively. Real estate investment trusts in the Asia-Pacific region generated an annualized return as high as 11.38 percent. The post Losing cash while holding it appeared first on Daily Tribune......»»
BSP keeps rates unchanged
The Bangko Sentral ng Pilipinas decided to keep interest rates unchanged at 6.25 percent for the second time this year, as it waits for the effects of its previous rate hikes to take hold and slow down inflation. The BSP's Monetary Board made the decision on Thursday, saying that it wanted to see how the recent rate hikes would impact the economy before making any further changes. Most economists polled by Daily Tribune had expected the Bangko Sentral ng Pilipinas to leave its benchmark overnight borrowing rate unchanged at Thursday's meeting as inflation had slowed for a fourth successive month in May. To recall, the BSP has raised interest rates six times since last September in an effort to cool inflation, which has been running above target for most of the year. In a press briefing, Governor Felipe Medalla highlighted the positive trends in inflation and domestic growth, while acknowledging the lingering risks and the need for continued vigilance. "The BSP’s latest baseline projections continue to suggest a gradual return of inflation to the target band of 2-4 percent over the policy horizon,” Medalla said. "Both headline and core inflation decelerated further in May due mainly to slower increases in the prices of food and energy-related items, affirming expectations of a return to the target range by year’s end,” he added. While the positive trends in inflation are promising, Medalla emphasized the potential risks to the outlook. These risks include the potential impact of additional transport fare increases and minimum wage adjustments, persistent supply constraints of key food items, El Niño weather conditions and possible knock-on effects of higher toll rates on agricultural prices. Medalla also highlighted the downside risk of a weaker-than-expected global economic recovery. “Given these considerations, the Monetary Board deems it appropriate to maintain current monetary policy settings to allow the BSP to further assess how inflation and domestic demand have responded to tighter monetary conditions,” he said. ING Bank Manila senior economist Nicholas Antionio Mapa expects some flexibility on the BSP’s part. “Despite the pause, BSP will likely remain open to hiking if data developments warrant a response,” he said in a Viber message. The pause is the BSP’s “best option” right now as “hiking in the dark” at this stage, without much data, could lead to costly outcomes, he added “Data-dependent central banks will always choose to see data before making adjustments to policy,” The latest BSP decision to keep interest rates unchanged could be the last policy move for Medalla, whose term ends on 3 July. President Ferdinand Marcos has yet to reveal whether he will reappoint Medalla or choose another candidate. Economists said the decision of who will be the next BSP governor will likely affect the central bank's policy stance. “Marcos’ choice for governor will likely inform our outlook for BSP’s policy stance, but should Medalla be reappointed, we expect BSP to be on hold for at least two more policy meetings before possibly cutting rates once inflation settles back within target,” Mapa said in a separate interview. The post BSP keeps rates unchanged appeared first on Daily Tribune......»»
BSP cuts 2-year BOP forecasts
The Bangko Sentral ng Pilipinas on Friday lowered its forecasts for the country’s balance of payments for this year and 2024 due to weaker global growth prospects and the downside risks of the trade outlook. The BSP expects the BoP to be in deficit this year, with a shortfall of $1.2 billion, down from the $1.6 billion deficit that the BSP forecasted in March. “The overall BoP position is expected to post lower deficit levels in 2023 and 2024 than previously anticipated due to revisions made in the forecasts for both the current account and financial account,” the BSP said. In a briefing, BSP Director Sittie Hannisha Butocan of the Department of Economic Research explained that domestic and external risks affect the country’s BOP. She added that these risks come from inflation, less pent-up demand because of higher interest rates, and tighter fiscal space. China risks Butocan noted that China poses risks and opportunities for global trade, especially for regional trade that affects BOP. Even though China’s economy is reopening and getting back to normal after supply-side problems, especially with oil, it is growing more slowly than projected. The BSP said that weak external demand is likely to continue, which will “weigh on the trade and investment prospects in emerging market economies, including the Philippines. Even as the domestic economy continued to recover strongly from the pandemic, the spillover effects from the global economic slowdown can be a major drag.” The BOP shortfall is $3.3 billion as of the end of April this year. The BSP only gives information about the current account, which is a big part of the BOP, every three months. Monetary Policy Subsector officer-in-charge Paolo M. Alegre Jr., for his part, said the latest current account showed a deficit of $4.3 billion as of the first quarter of this year. He said that this was because of the growing trade-in goods deficit and lower net receipts in the main income account. The increase in net receipts in the trade-in services account helped to lessen the effect of these factors. The BSP now thinks that this year’s current account deficit will be $15.1 billion, which is less than its earlier prediction of $17.1 billion. Butocan said that the current account will be helped by a steady recovery in the BPO and tourist industries and by remittances that keep coming in. 2024 expectations Next year, the Central Bank expects the country’s BOP to have a $0.5 billion deficit, which is -0.1 percent of GDP. “For 2024, the overall BOP position is projected to post a slightly lower deficit relative to the previous forecast. This is hinged mainly on the foreseen normalization and return to pre-pandemic levels of global and domestic economic activity,” the BSP said. The central bank predicts a $15.4 billion current account deficit next year as the trade-in goods gap narrows. The BSP also predicted 6 percent export growth and 8 percent import growth for next year.The Central Bank also expects the services exports to rise by 16 percent and imports by 10 percent in 2024. Next year, BPO receipts may climb by 9 percent and travel receipts by 50 percent. Growth prospects “Growth prospects for BPO and travel sectors remain on a steady course. The latter is forecasted to exceed its pre-pandemic level by 2024 buoyed by much-improved international mobility and supported by government-led tourism promotion programs to regain market losses from the pandemic,” the BSP said. The central bank also expects 3 percent cash remittance growth in 2024 as Filipino workers fill in for the labor shortage resulting from pandemic-induced job losses and aging populations in host economies. Meanwhile, BSP reduced its financial account prediction to $14.4 billion from $15.7 billion next year. It also expects the Foreign Direct Investments net inflows to reach $11 billion and foreign portfolio investments net inflows at $3.5 billion. The central bank said its forecasts are limited due to persistent external concerns. The BSP assured that it would regularly monitor external sector developments and risks affecting its pricing and financial stability objectives. The post BSP cuts 2-year BOP forecasts appeared first on Daily Tribune......»»
BSP to absorb P360B excess liquidity
The Bangko Sentral ng Pilipinas will absorb P360 billion in excess liquidity from its recent cut in the reserve requirement ratio, British bank HSBC said on Friday. In an emailed commentary, HSBC economist Aris Dacanay clarified that the RRR cut by 250 basis points (bps) for major banks would cause "much extra liquidity." He explained that BSP's relief measure would also end on 30 June, coinciding with the reserves ratio reduction. "We estimate the net effect to be P87.7 billion. This will be a net injection of liquidity in the system, but a limited one, given that it represents just 6.3 percent of the excess liquidity currently being absorbed by the BSP," Dacanay said. He explained that the RRR cut "will be slightly larger than the relief provided by the pandemic-era measures on reserves." However, he estimated that the net effect on liquidity would be "positive but limited." According to Dacanay, the market had anticipated a smaller reduction in the RRR of 200 bps, aligning with the expiration of the relief measure that permitted banks to use loans extended to micro, small, and medium enterprises and eligible large enterprises to meet the reserve requirement. As of April, banks had used P302.4 billion in loans as an alternative compliance method for the reserve requirement. Among this total, P236.9 billion were loans to MSMEs, while P65.5 billion were borrowed by large independent enterprises not affiliated with conglomerates. However, Dacanay pointed out that the BSP's securities facility, which now includes additional tenors and the introduction of 56-day BSP bills on 30 June, enables the central bank to effectively absorb the excess money supply. This suggests that the central bank is adequately prepared to address surplus liquidity. "As communicated by the BSP, we don't think the RRR cut will affect monetary policy and the central bank's battle against inflation," Dacanay said. "On the same day as the RRR cut, the BSP will be issuing its new tool to absorb liquidity in the system -- the 56-day BSP bill. The liquidity injected by the RRR cut will likely be absorbed by this new tool on that same day," he added. He added that "the timing (of the RRR cut) is important since without the relief measures expiring, the RRR cut may be interpreted as a dovish signal by the BSP at time when inflation is high." The post BSP to absorb P360B excess liquidity appeared first on Daily Tribune......»»
Thousands flee flooded homes after Ukraine dam destroyed
Thousands were fleeing their homes Wednesday after the destruction of a frontline Russian-held dam in Ukraine flooded dozens of villages and parts of a nearby city, sparking fears of a humanitarian disaster. Downstream from the breached Kakhovka dam, Ukrainian police and troops in the southern city of Kherson were bringing people out from inundated areas in inflatable boats, most clutching only a few documents and pets. Despite the evacuations, officials said Russian forces have kept shelling the residential neighborhoods. Ukraine and Russia have traded blame for the dam being ripped open early Tuesday, prompting Turkey's president to propose to both nations' leaders an international probe of the breach. The destruction has also raised fears of an environmental disaster and nuclear safety risks as it provides cooling water for Europe's largest nuclear plant. One woman, Nataliya Korzh, 68, had swum part of the way to escape from her house. She emerged from a rescue boat barefoot, her legs covered with scratches, her hands trembling from cold. "All my rooms are underwater. My fridge is floating, the freezer, everything. We're used to shooting, but a natural disaster is a real nightmare. I wasn't expecting that," she told AFP. She feared for her two dogs and cat, which she was unable to save. "To get to the room where the dogs were, I would have had to dive. I don't know what's happened to them." The water was waist-deep in the central streets of Kherson and the ground floors of buildings were submerged. A spokesman for Ukraine's emergency services, Oleksandr Khorunzhyi, said that "currently there is no information about the dead or injured". Water levels in Kherson have risen by five meters (16 feet), he said. While finger-pointing continued over the dam's destruction, Moscow accused Kyiv of blowing up a key pipeline that Russia used before the war to export ammonia and whose re-activation it has requested as part of grain deal talks. Continued shelling The governor of the Kherson region, Oleksandr Prokudin, said 1,700 people had been evacuated so far and reported that ongoing shelling was endangering rescuers and locals. Moscow-installed officials on the Russian-occupied side of the river said on Tuesday that more than 1,200 people had been evacuated. A policeman, Sergiy, 38, was using a radio to coordinate the rescue boats. "Today we've already saved 30 people, 10 pets. There was one child. We will work until we've brought out all the people," he told AFP. Washington warned there would be "likely many deaths" due to the breach of the Kakhovka dam. Kyiv said the destruction of the dam -- seized by Russia in the early hours of the war -- was an attempt by Moscow to hamper its long-awaited offensive, which Ukraine's leader stressed would not be affected. The United Nations warned that hundreds of thousands could be affected on both sides of the frontline. The governor of the Kherson region, Oleksandr Prokudin, said 1,852 houses had been flooded by early Wednesday. "According to our forecasts, the water level will increase by one meter within the next 20 hours," he warned. An official in President Volodymyr Zelensky's office, Daria Zarivna, said that in the occupied territory "the Russians simply abandoned people" and in the town of Oleshky on the opposite bank from Kherson, "many spent the night on the roofs of houses". 'Environmental bomb' Zelensky accused Russia of detonating an "environmental bomb of mass destruction", saying authorities expected up to 80 settlements with tens of thousands of residents to be flooded and urging the world to "react". "This crime carries enormous threats and will have dire consequences for people's lives and the environment," Zelensky said. But the explosion would "not affect Ukraine's ability to de-occupy its own territories", he added. Last October, Zelensky accused Russia of planting mines at the dam, warning that its destruction would spur a new wave of refugees into Europe. Kyiv said 150 tonnes of engine oil had spilled into the river, and the agricultural ministry said about 10 thousand hectares of farmland on the right bank of the river would be flooded and "several times more" on the left bank. China expressed "serious concern" over the dam destruction, while EU chief Charles Michel called it a "war crime" and NATO chief Jens Stoltenberg condemned it as "outrageous". Russia has said the dam was partially destroyed by "multiple strikes" from Ukrainian forces and urged the world to condemn Kyiv's "criminal acts". Turkish President Recep Tayyip Erdogan's office said he proposed setting up an international commission to investigate the destruction of the dam in calls with Zelensky and Russian leader Vladimir Putin. The Soviet-era dam, built in the 1950s, sits on the Dnipro River, which provides cooling water for the Russian-occupied Zaporizhzhia nuclear power plant some 150 kilometers (90 miles) away. The UN nuclear watchdog agency said the dam break was posing "no short-term risk" to the plant. Separately, Moscow accused a Ukrainian "sabotage" group of blowing up a section of the Togliatti-Odesa pipeline that Russia used to export ammonia and that is part of the international talks on allowing grain exports from Ukraine amid the conflict with Russia. Ukrainian officials have accused Russian forces of firing at the ammonia pipeline. The post Thousands flee flooded homes after Ukraine dam destroyed appeared first on Daily Tribune......»»
MIF won’t threaten LandBank, DBP
The prospect of the state-owned Land Bank of the Philippines or LandBank and the Development Bank of the Philippines or DBP collapsing as a result of their infusions into the Maharlika Investment Fund is overblown. National Treasurer Rosalia de Leon assured the public on Saturday that LandBank would remain strong even if the proposed Maharlika Investment Fund or MIF failed. De Leon made the assurance during the Saturday News Forum on the sovereign wealth fund into which LandBank is expected to contribute P50 billion of the MIF’s P125-billion seed capital. DBP, another state-run bank, and the national government are expected to contribute P25 billion and P50 billion, respectively, to the MIF. “LandBank has about P1.3 trillion in investible funds. It will allocate P50 billion to the MIF, less than 3 percent of its total funds. So that means its investment is minimal. It will not affect the prudential ratios imposed by the Bangko Sentral,” De Leon said. Small portion of banks’ assets “On the other hand, DBP will allocate just about 2.7 percent of its P850 billion in investible funds. So, once again, plenty of funds are available to address the needs of our industries, businessmen, private sector, and even our MSMEs (micro, small and medium enterprises) to meet their respective requirements,” she stressed. De Leon said LandBank, one of the country’s largest universal banks, is a “very stable bank” in terms of assets since it’s a government fund. The National Treasurer said the MIF bill passed by both houses of Congress has safeguards in place to prevent graft and corruption. MIF has external auditor De Leon said an external auditor will be appointed to oversee the use of the funds. The auditor will be responsible for ensuring that the funds are used following the law and that there is no misuse of the money. “Each section of this proposed law pertains to safeguards to ensure the protection of the public funds so that they can be directed towards the objectives for which the fund was established,” she said. The post MIF won’t threaten LandBank, DBP appeared first on Daily Tribune......»»