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BSP grants relief to banks affected by Typhoon Santi

Economy

Oct 222013

BSP grants relief to banks affected by Typhoon Santi

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has granted temporary regulatory relief to banks affected by Typhoon Santi. “(This is) to enable them to similarly assist and ease the financial burden of bank customers adversely affected by Typhoon Santi,” the central bank said in a statement. Banks eligible for the relief measures are those located in the provinces of Pangasinan, Isabela, Nueva Vizcaya, Quirino, Aurora, Bataan, Nueva Ecija, Pampanga, Tarlac, Zambales, Laguna, and Rizal. For thrift, rural and cooperative banks, the BSP has excluded the computation of due ratios for existing loans of borrowers in affected areas. The BSP has also allowed to the non-imposition of penalties on legal reserves deficiencies and has granted a moratorium on monthly payments due to the central bank for those banks with ongoing rehabilitation programs. At the same time, the central bank has slashed the general loan loss provision to one percent from five percent and said it will not be imposing penalties on delays in the submission of supervisory reports. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For all types of banks affected, the BSP has allowed them to grant financial assistance to officers or employees affected by the typhoon. Meanwhile, for rediscounting banks, the central bank gave them a 60-day grace period to settle outstanding obligations as of Oct. 13 and allowed them to restructure with the BSP current loans of affected borrowers. The BSP has granted similar relief measures following typhoons Sendong, Pedring, Mina and Juaning in Read More …

Competition policy needed for business to prosper – Belmonte

Economy

Oct 222013

Competition policy needed for business to prosper – Belmonte

MANILA, Philippines – The Philippines will need to pass a competition policy to create an environment more conducive for business and attract much needed investments to achieve economic growth and prepare for regional economic integration. Speaking at the 39th Philippine Business Conference and Expo yesterday, House Speaker Feliciano Belmonte Jr. said the country needs a competition policy to create an environment conducive to investor as the Association of Southeast Asian Nations (ASEAN) is set to establish regional economic integration in 2015. The ASEAN economic community (AEC) is expected to lead to free movement of goods, services, investment, skilled labor as well as flow of capital in the region. As the AEC will be put in place in two years time, Belmonte said all member nations including the Philippines will have to prepare and look at how they could maximize the benefits of economic integration, while minimizing its costs to the society. “In our own country, competitiveness-enhancing policies are necessary when faced with the conditions in the domestic and international markets. Relaxed foreign investment and ownership requirements, a liberalized trade policy, and further economic deregulation – all these may be part of our competitiveness policy which seeks to promote efficiency and maximize welfare,” Belmonte said. He noted though that the country’s existing laws are not sufficient to hurdle problems that may arise in 2015 should the ASEAN constitute itself into a single market. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 To attract investments and prepare for the AEC, he Read More …

Port modernization a reality

Economy

Oct 222013

The mere mention of Tondo evokes a feeling of fear in the hearts of many. The feeling is not without basis. After all, Tondo is notorious for being a haven for lawless elements, for criminal syndicates, street children, squatter shanties. The image may sound unfair, but that is the perception and that is difficult to change. Not even Manila North Harbor in Tondo was spared from this perception. Dilapidated structures, grubby facilities, and thugs and pickpockets in every corner of the port prying on travel-weary passengers are common sights in the country’s oldest and busiest domestic port. But North Harbor is transforming into a modern port that can rival those that can be found in other more developed countries. Manila North Port, formerly North Harbor, is getting a lot of people excited. First, it now offers a modern, more convenient and safer sea travel. Second, it gives businesses a big boost in product mobility. Third, it provides employment opportunities especially to the people of Tondo. Fourth, it gives the country a better standing in international port operations and expectantly more opportunities for investors. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Manila North Port is a new and modern passenger terminal located in an 11,600 sq.m. area situated between Piers 4 and 6. It can accommodate more than 3,000 passengers at any given time. The world-class terminal can handle some two million passengers annually, which is double the current annual capacity of the old port terminal. It is a Read More …

Metal production value falls in H1

Economy

Oct 212013

MANILA, Philippines – Lower commodity prices dragged down metal production value 7.89 percent in the first semester of the year, data from the Mines and Geosciences Bureau (MGB) showed. Aggregate metal production value during the first six months of the year fell to P45.91 billion from P49.84 billion in the same period last year. “Dictated by the less upbeat world metal prices, the precious metals gold and silver, and the base metals copper and nickel, all recorded negative movements during the review period,” the MGB said in a report. Nickel production remained the top contributor to the aggregate production value for the period. Nickel direct shipping ore and mixed sulfides accounted for 41 percent of the output value, equivalent to P18.99 billion combined. Gold comprised 34 percent of the production value, contributing P15.60 billion, while copper made up 22 percent of the production, contributing P9.97 billion. The remaining three percent of the production value equivalent to P1.34 billion comprised silver, zinc, chromite and iron production. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Average gold price during the first half fell 7.70 percent to $1,524.52 per troy ounce from $1, 651.69 per troy ounce in the same period last year. “Despite this, demand from India and Greater China (China, Hong Kong and Taiwan) remained strong,” said the MGB. The six-month averages for copper and nickel also fell 7.54 percent and 13.13 percent respectively. Copper prices slipped to $3.39 per pound from $3.66 per pound, while nickel prices fell to Read More …

Discovery World revives IPO plan

Economy

Oct 212013

MANILA, Philippines – The company behind upscale resort hotel Discovery Shores Boracay is pushing through with its initial public offering (IPO), emptying the list of firms that previously deferred their share sale due to market volatility. Discovery World Corp. will raise as much as P550 million, just half of the earlier targeted P1 billion proceeds, from the IPO next month, the Philippine Stock Exchange (PSE) said. In a memorandum, the bourse said Discovery World, which earlier planned to sell stocks in August, will offer its shares on Nov. 8-14, to be followed by its listing on Nov. 21. “Given the company’s decision to concentrate on the tourism business, the company will no longer pursue the investment in Enderun Colleges Inc.,” Discovery World said. “It will also delay the development of Palawan Cove Corp. in light of the company’s acquisition of Euro-Pacific Resorts Inc.,” it added. Euro-Pacific owns and operates Club Paradise Resort in Dimakya Island in Coron, Palawan. Hence, Discovery World reduced the offer size to 168 million shares from 306 million, with expected proceeds scaled down to P551 million from P1 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The resort owner and operator retained its offer price at P3.28 per share, for a post-IPO market capitalization of P2.05 billion. In August, Discovery World shelved its IPO as it awaited for the result of several business transactions. The PSE approved the listing plan of Discovery World in July. Discovery World will be the third company of the Read More …

Electronics exports seen to contract amid weak demand

Economy

Oct 212013

Electronics exports seen to contract amid weak demand

MANILA, Philippines – The Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) expects the value of shipments of electronic products to contract by 10 to 12 percent this year, a revision of the previous projection of five-percent growth, amid weak demand for semiconductors from overseas markets. SEIPI president Dan Lachica said in a press conference yesterday the group has decided to revise its forecast as the country’s exports of electronic products have declined year-on-year. “The board has reduced its projections for the year. Whereas before, as you know, we have been projecting five percent growth by the end of 2013. Year-to-date, we are actually in the negative,” he said. Data from the National Statistics Office showed that in 2012, the value of exports of electronic products decreased 5.20 percent to $22.557 billion from $23.795 billion in 2011. For the January to August period, the value of electronic shipments amounted to $13.664 billion, down 13 percent from the $15.707 billion in the same period last year. As of end-August, revenues from shipments of semiconductors or components and devices reached $10.441 billion, 11.62 percent lower than the $11.814 billion in the comparable period in 2012. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We see that volumes continue to be high. In fact, many of our members are not going to be shutting down during the Christmas holidays but nonetheless, that is not going to be enough to recover to a positive five percent by the end of the year,” Read More …

AEV secures top rating for P10-B bond

Economy

Oct 212013

MANILA, Philippines – Cebu-based conglomerate Aboitiz Equity Ventures Inc. (AEV), one of the top power producers in the Philippines, has secured the highest credit rating for its planned P10-billion bond issuance. In a disclosure, the listed holding firm said local credit rater Philippine Rating Services Corp. (PhilRatings) assigned the PRS Aaa score on its long-term bonds. “Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” PhilRatings said. Late last month, AEV’s board of directors authorized the issuance of up to the P10 billion in retail bonds with tenors of seven and 10 years. AEV will offer P5 billion bonds maturing in 2020 and another P5 billion maturing in 2023. PhilRatings said the credit score reflects AEV’s strong financial performance with a high level of operating cash flow and sound capital structure with a conservative leverage position. Philratings said it also noted the “positive growth prospects for the company’s business portfolio and AEV’s highly-experienced and conservative management team.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 AEV is one of the largest conglomerates in the country. It has investments in power (Aboitiz Power Corp.), banking (Union Bank of the Philippines), food manufacturing (Pilmico Foods Corp.) and property development (Aboitiz Land Inc.). “The company’s main core business, Aboitiz Power, is a leading power generation and distribution company in the Philippines,” PhilRatings said. As of end-September, Aboitiz Power had a total attributable capacity of Read More …

Japan trade deficit at record in September

Economy

Oct 202013

Japan trade deficit at record in September

TOKYO — Japan’s trade deficit ballooned to a fresh record for September as costs for imports of food and other necessities outstripped growth in exports. Preliminary customs data Monday show September’s deficit was 932 billion yen ($9.5 billion), the 15th consecutive monthly shortfall. The deficit for April-September rose to nearly 5 trillion yen ($51 billion), also a record for the first half of the fiscal year. Imports rose 16.5 percent in September from a year earlier to 6.90 trillion yen ($70.3 billion), while exports, helped by recoveries in key overseas markets such as the U.S. and EU, climbed 11.5 percent to 5.97 trillion yen ($60.9 billion). The yen has weakened by almost 25 percent against the U.S. dollar in the past year, making Japan’s exports cheaper overseas but also raising costs for imports. Imports of oil and gas accounted for nearly a third of the total but fell 1 percent as oil prices moderated. Imports of soybeans and other food and machinery surged at double-digit rates. Exports were boosted by rising shipments of vehicles, iron and steel, rubber, chemicals and machinery. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The U.S. remained Japan’s largest export destination, at 1.11 trillion yen ($11.3 billion), while imports totaled 665 billion yen ($6.8 billion). The resulting 533 billion yen ($5.4 billion) surplus rose 25 percent from a year earlier. But Japan’s trade deficit with China jumped 87 percent to 620 billion yen ($6.3 billion) as imports of such items as cellphones and solar Read More …

Smart introduces Bayadload

Economy

Oct 202013

MANILA, Philippines – Wireless giant Smart Communications Inc., a unit of dominant carrier Philippine Long Distance Telephone Co. (PLDT), is set to launch a new type of electronic load to enable subscribers to pay monthly contributions to social security, health insurance, and housing funds. PLDT president and chief operating officer Napoleon Nazareno said the company is working closely with the government to launch Bayadload that could be used to pay monthly contributions to the Social Security System, Government Service Insurance System, Philippine Health Insurance Corp. (Philhealth), and Pag-Ibig Fund. “We call it BayadLoad. Bayad in our language means payment. This service will make it much easier for about 15 million self-employed individuals and household help to become active members of these social funds and to benefit from their services,” Nazareno said. He pointed out that subscribers just need to go to a Smart retailer and purchase the special load and pay their monthly contributions using their mobile phones. Nazareno, who is also president of Smart, said the company intends to extend the use of BayadLoad to the payment of other government fees and services. “Clearly, our retail distribution network has become a strategic tool for extending the ecosystem for mobile money transactions. Through this network, which reaches every nook and cranny of the country, we can rapidly deploy new financial services to people living at the periphery of the economic mainstream,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In recent years, Nazareno said the PLDT Group Read More …

Fear of failure

Economy

Oct 202013

I wonder if you have heard of Spanx. It is described in its website as a shapewear. What it really does, according to its inventor, is to better control how a woman’s behind looks without revealing a panty line when wearing tight jeans. It sounds frivolous to some of us but according to Sara Blakely who invented it and made millions making and marketing it, it responds to a very real need for a lot of women. Ms. Blakely was interviewed on CNBC’s Squawk Box last week as one of America’s entrepreneurs who make for a vibrant American economy. She wasn’t always the hotshot entrepreneur she now is. She recalled she was selling fax machines door to door. Her eureka moment arrived when she struggled with the problem of having an undergarment that did the job Spanx eventually did. Asked how she became a sucessful entrepreneur, she responded she didn’t have a business education and that helped. She just jumped into it without any fear because she didn’t know any better. She said she was not afraid to fail. Why was she so fearless? She recalled that her father subjected her and her brother to this drill at the dinner table. They were asked nightly: where did they fail today? The whole idea is to make them feel failure is nothing to fear… it is an opportunity to learn. The important thing is they tried to do something challenging, something different. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Read More …

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