Developers eye agro- industrial park in Iloilo

Developers eye agro-

industrial park in Iloilo

TWO developers are eyeing to establish an agro-industrial park within the convergence areas covered by the Jalaur River Multi-Purpose Project II (JRMP II).

This was disclosed by Ricardo Provido, chairman of the Regional Agri-Fisheries Council (RAFC), during the culminating activity of the 35th anniversary celebration of the Comprehensive Agrarian Reform Program (CARP) and the second year of implementation of the CARP extension with reforms (CARPER) in Iloilo.

“This can become an eco-zone but it will be based on the processing of agri-fishery products. This is what they call the agri-fishery development park, it is an eco-zone,” Provido said.

Provido said the developers, which he did not name at this time, were very specific that “they wanted to be in the convergence area; hopefully it will be within the Jalaur River Basin.”

He said the project site makes delivery of raw materials and finished products for shipping easy because it can be facilitated without traffic.

“It can immediately go to the coastal road and direct to the seaport or it can go directly to the airport,” he added.

Other factors that prodded the developers to invest are the availability of water and power.

SEC wants disclosures on foreign equity enhanced

SEC wants disclosures on foreign equity enhanced



THE Securities and Exchange Commission (SEC) may begin requiring additional disclosures from companies following a Supreme Court ruling on foreign ownership, an SEC official said on Thursday.

In an interview on the sidelines of the “2009 Corporate Governance Trends in the 100 Largest Publicly Listed Companies” in the country, SEC chair Teresita Herbosa said they would have to require certain firms to disclose in detail the classes of shares that they are issuing stockholders.

“If the decision becomes final, we would have to require the [affected] companies to disclose whether or not their preferred shares are voting or non-voting, and we will compute accordingly,” Herbosa said.

Some of these affected companies are in public utilities, education, natural resources, and in nationalized and partly nationalized activities.

The new requirement stems from a recent ruling by the SC saying that the Philippine Long Distance Telephone Co. (PLDT) may have breached Section 11, Article 12 of the Charter, which mandates the 60-40 ownership rule in a Philippine corporation.

The high court ruled that the term “capital” in the provision refers only to common stocks — which gives shareholders voting rights to elect board directors — which, when strictly enforced, elevates foreign ownership in PLDT to 64 percent breaching the 40 percent ceiling.

Remittance slowdown to narrow surplus

Remittance slowdown to narrow surplus


By: Jeremaiah M. Opiniano

THE World Bank projects that the country’s current account surplus this year will narrow, partly as a result the increasing trade deficit and the projected slowdown of deployment of overseas Filipino workers.

According to the World Bank’s East Asia and Pacific Region in its quarterly update, the narrowing current account was due to, among others, the weakness of Philippine exports in major export destination countries, the strengthening of the real value of the peso that impacts on export growth, and the migration-related developments that will impact on the influx of more remittances from abroad.

The current account is an item in the balance of payments (BoP) that covers trade in goods, services, income and current transfers, and the remittances from overseas Filipinos. Remittances are said to be the biggest contributors to the current account.

Filipinos have P5 trillion in banks

Filipinos have P5 trillion in banks   MORE Filipinos trust the banks to keep their money safe, according to the Philippine Deposit Insurance Corp. (PDIC), citing the P411-billion rise in deposits during the first quarter. PDIC president Valentin Araneta said Filipinos now have P5 trillion tucked away in bank vaults nationwide, and that bank deposits […]

Delinquent housing loans down 25% – BSP

Delinquent housing loans down 25% – BSP


THE non-performing housing loans of Philippine banks in the first quarter fell by 25 percent to P9.69 billion from P12.97 billion as of year-end 2010, according to the Bangko Sentral ng Pilipinas (BSP).

This developed as the total exposure of banks in the real estate sector inched up by 2.6 percent to P44.9 billion, driven by a 2.7 growth in real estate loans (RELs), the central bank said in a statement Wednesday.

Overall, the non-performing RELs slipped by 8 percent to P26.2 billion, resulting in a 6.1 percent improvement in the ratio of non-performing RELs to total RELs. As a percentage of the total loan portfolio, delinquent RELs also dropped to 0.9 percent.

Microfinance lending up 6% to P6.6B

Microfinance lending up 6% to P6.6B


MICROFINANCE lending in the country expanded by roughly P7 billion Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said Wednesday, citing latest data available.

Tetangco said 882,692 borrowers availed themselves of P6.6 billion in microloans approved in 2009. Some cooperative banks, rural banks and thrift banks comprised the financial institutions then with microfinance functions.

“There are now over 200 banks currently providing microfinance services to over 900,000 clients with P6.5 billion in loans outstanding and P3 billion in savings,” the BSP said.

CEB supports Airbus-CAAP pact

CEB supports Airbus-CAAP pact


THE Philippines’ largest national flag carrier, Cebu Pacific (PSE:CEB), said it supports the Civil Aviation Authority of the Philippines’ (CAAP) joint initiative with Airbus to provide training for the safe and efficient implementation of a full Performance-based navigation network (PBN) in 11 airports in the country.

“CEB fully backs this CAAP partnership since it will benefit our passengers and operations. With the performance-based navigation network, CEB can fully utilize its GPS navigation and latest aircraft technology to further ensure passenger safety and reduce fuel costs and carbon dioxide emissions,” said CEB VP for Flight Operations Capt. Victor Custodio.

Tobacco group commends Palace move vs higher taxes

Tobacco group commends Palace move vs higher taxes THE Palace is making the right move by rejecting new or higher taxes in the immediate term, which could make an impact on the tobacco industry, the Philippine Tobacco Growers Association Inc. (PTGA) said Tuesday. The PTGA was reacting to President Benigno Aquino III’s rejection of the […]

Borrow more from local market, says PHL monetary official

Borrow more from local market, says PHL monetary official

A FORMER cabinet official on Tuesday called on government to optimize its borrowing activities to impact on costs to counter what is called a “negative carry.”

In an interview, newly appointed Monetary Board member Felipe Medalla said Finance Secretary Cesar Purisima’s inclination to borrow more from dollar bond markets should be directed towards the local bond market instead.

While understandable in certain cases, Medalla said this practice has resulted in a so-called negative carry, a situation where the cost of borrowing is higher than its supposed benefits.

“Our national government is borrowing at seven percent, and our Bangko Sentral ng Pilipinas is investing its reserves in US Treasuries that are earning less than seven percent,” he said.

Medalla, also a former Socioeconomic Planning secretary, said the best financial strategy should strive towards a balance between foreign credit and local financing options.

“The shift has to be well coordinated,” Medalla said, “but we should [already] be thinking of the shift, the exact time and exact strategy to do it.”

He added that there should be a “win-win solution” where the government borrowing is more consistent with factors such as the exchange rate, the gross domestic product and price stability.

Abad explains ‘nature’ of Malampaya funds

Abad explains ‘nature’ of Malampaya funds

Budget Secretary Florencio Abad explained the nature of the controversial Malampaya funds on Tuesday — a day after a senator called for transparency in disbursing the said proceeds from the Philippines’ largest natural gas development project.

In a statement by the Department of Budget and Management (DBM), Abad said the Malampaya fund balance of P79.48 billion as of May is not actual cash but an accounting of revenue inflows and expenditure items charged against the fund since the remittance of revenues from the Malampaya Natural Gas Project began in 2002.

The secretary also explained “that the annual revenue inflow in the form of net proceeds from the sale of petroleum from the Malampaya Natural Gas Project is accounted for as part of the yearly revenue program supporting the Budget proposal submitted to Congress.”

“Hence, the proceeds are effectively utilized every year to fund expenditures approved by Congress. For 2011, some P26.2 billion of Malampaya proceeds is projected under the P138 billion non tax revenue program of the government,” the DBM said.

The secretary, however, said the Bureau of Treasury and the Department of Energy maintain a Malampaya Special Account under the General Fund (Fund 151) “to account for the revenue inflows due to its royalties from the Malampaya project and the specific expenditure items charged against Fund 151.”