Maniolas

After months of falling below target, inflation could finally hover back to the government’s target in the remainder of the year, an official of the Department of Finance said. File photo MANILA, Philippines – After months of falling below target, inflation could finally hover back to the government’s target in the remainder of the year, an official of the Department of Finance said. This was after consumer prices rose to their fastest in 18 months at 2.3 percent in September, falling within the central bank’s two to four-percent target for the year. “Core inflation suggests that in the short-term, headline inflation rate will be above two percent,” Finance Undersecretary Gil Beltran said in his economic bulletin dated Oct. 5. Core inflation pertains to the long-run trend of inflation, which excludes transitory effects coming from volatile prices of food, oil and energy. The indicator hit 2.3 percent last month. According to Beltran, last month’s result, as measured by the consumer price index, was largely driven by low base effects of just 0.4 percent from last year, and thus should not be a cause for concern. “A continued regime of stable prices will provide cushion to absorb shocks to the economy and help sustain rapid economic growth,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This was driven highly by increase in oil and electricity prices, with Beltran pointing to adjustments made by the “big three” oil players namely Petron Corp., Pilipinas Shell and Caltex. Specifically, he said average Read More …

MANILA, Philippines – Banks and other financial institutions are open to a proposal allowing micro, small and medium enterprises (MSMEs) to use other properties as collateral for loans, aside from land and other immovable assets, Sen. Paolo Benigno Aquino IV said yesterday. During the technical working group (TWG) meeting conducted by the Senate committee on banks on Senate Bill 354 or the proposed Secured Transactions Act, different financial associations and concerned government agencies have supported the passage of the measure. The TWG was attended by representatives from the Department of Finance, Land Registration Authority (LRA), Securities and Exchange Commission (SEC), Credit Information Corporation (CIC), Bangko Sentral ng Pilipinas, banks, financing organizations and MSMEs. Aquino, who authored SB 354, said the proposal can provide a win-win situation for both MSMEs and banks with a healthier loan environment. He said the measure can address the lack of capital of MSMEs to promote their growth. “The proposal encourages financial institutions to take part in MSME development without the fear of great risk,” the senator said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Usually, banks prefer immovable assets, such as houses or land, as loan collateral, he said. However, assets of MSMEs are mostly personal in nature, including equipment, inventory, motor vehicles and receivables, making it difficult for them to meet bank requirements to get loan approvals, he said. During the TWG, different stakeholders said MSMEs can easily acquire loans they need if banks would accept movable collaterals such as goods, livestock Read More …

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has shuttered the Rural Bank of Luna (Isabela), bringing to 16 the number of financial institutions closed down by the regulator as part of efforts to weed out weak players in the industry. The closed rural bank was placed under the supervision of the state-run Philippine Deposit Insurance Corp. (PDIC). Under the PDIC Charter, a bank that has been placed under liquidation shall in no case be re-opened and permitted to resume banking business. BSP officer-in-charge Nestor Espenilla Jr. said the country’s banking system has evolved over the years with the closure of some players as well as the mergers and consolidation of the others. “The system is evolving so what we are seeing is the weaker players have decided to get out of the system or combine with the others. We keep saying compared with 10 years ago the banking system today, those that remain will continue to service the market is more stronger than the banking system 10 years ago,” he said. Espenilla cited the weak banking system in Europe prompting the European Central Bank to release more liquidity in their financial system. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “In Europe there is something wrong with the banking system so what is happening to them they are unable to grow even though the central bank there keeps releasing liquidity it doesn’t go out because the transmission channel, the financial system is a problem,” he said. According Read More …

INITIATIVES reducing red tape and corruption, and improving revenue collection were cited as key achievements by the Department of Finance in the first 100 days of the Duterte administration.

After buying majority stake in Philweb MANILA, Philippines – Businessman Gregorio Ma. Araneta III is seeking exemption from the mandatory tender offer requirement in relation to his acquisition of businessman Roberto Ongpin’s stake in PhilWeb Corp. In a disclosure to the Philippine Stock Exchange (PSE), PhilWeb said the parties involved in the transaction are now seeking approval from the Securities and Exchange Commission (SEC) for the exemption. A source from the SEC’s Market Regulations Department, however, said the transaction was covered by the mandatory tender offer requirement under the Securities Regulation Code (SRC).  The SRC requires mandatory tender offers when a person or group of persons intends to acquire 35 percent of the outstanding voting shares of a public company in one or more transactions within a period of 12 months. Ongpin sold his 53.76 percent stake in PhilWeb, equivalent to 771.65 million shares, at P2.60 per share or a total of P2 billion. According to the sale and purchase agreement, the sale will be in two tranches. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  The first tranche of 653.15 million shares will completed through a special block sale and for approval by the PSE, while the second tranche will consist of 118.5 million shares that need to be registered for listing at the PSE. The second tranche is scheduled as soon as the registration of these shares at the PSE is completed and will be transacted at the same price as the special block sale for the Read More …