Maniolas

MANILA, Philippines – Globe Telecom Inc. has obtained a P7 billion loan from Union Bank of the Philippines for capital expenditures for projects intended to address the consumers’ growing demand for data. The Ayala-led telco said it signed a 10-year term loan facility with Union Bank. “The loan shall be used to finance the company’s capital expenditures,” Globe said. For this year, Globe has allotted P35.4 billion capital expenditures, with the bulk to be spent for data-related projects. These projects include the rollout of LTE (Long Term Evolution) or the fastest wireless data service commercially available, improving capacity and coverage of 3G and HSPA+ (Evolved High-Speed Packet Access) which is an upgrade to existing 3G technologies, and modernization of fixed line data infrastructure as well as requirements for transmission facilities. Earlier, Globe also secured a P20 billion loan from Metropolitan Bank and Trust Co. to fund its acquisition of half of the telco assets of San Miguel Corp. (SMC). Globe and rival PLDT Inc. purchased the telco assets of SMC for P70 billion last May 30. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Following the transaction, Globe and PLDT gained access to frequencies including the 700 Megahertz (MHz) band which provides wider coverage and better indoor penetrability, previously held but not used by SMC. Both telcos are already using the new frequencies. Globe president and CEO Ernest Cu said earlier the telco expects to activate 500 cell sites with the 700 MHz band before the end of the Read More …

This 2009 photo shows the North Luzon Expressway being rehabilitated. To fully maximize gains from growth, however, investments should pump development in the countryside where unemployment persists, says economics professor Emmanuel Lopez. ADB/Released, file A rather bullish economic mood has been seen in recent years due to an enhanced local market. Is the Philippines headed toward stability, much like some emerging economies now enjoy? Pre- development experiences are in place, initiated by accolades from reputable international credit rating agencies. Interested foreign and local investors are flocking to glimpse at opportunities within these shores. The latter years witnessed an unprecedented growth rate; from a low of 5 percent to a high of 6.5 percent of our gross domestic product aided largely by consumers’ spending pattern. Inflation rate, moreover, remains low and ideal the past few years, the highest being at 2 percent. Such inflation rate by any standard seems negligible and should not be a cause for worry, especially at a time when the country’s macroeconomic fundamentals remain strong and steady. Unemployment, despite being a lingering concern has been gradually abridged, thanks to largely to the business process outsourcing industry. There is much more that is needed to concretize our investment target, but it is just a matter of time before we the fruits of development is felt. After all, confidence building measures we have long been placed for years. To fully maximize gains from growth, however, investments should pump development in the countryside where unemployment persists. The countryside development program Read More …

Recent portfolio investments in the Philippines have not been meeting expectations. Philstar.com/File photo An analysis of patterns of foreign direct investments in the Philippines The Philippine economy today continues to benefit from admirable macroeconomic fundamentals. If maintained, they can be key in attracting foreign investors who are important in filling the gap that local investments are not yet able to fulfill. Not only do they fund projects in the Philippines, they also expand Filipinos’ technological choices and access to foreign buyers. Despite the change in administration, the country’s economic managers are quick to reassure Filipinos that they intend to provide continuity in the country’s good policies. On Wednesday, at a forum arranged by the Stratbase ADR Institute, Secretary Benjamin Diokno of the Department of Budget and Management and Bangko Sentral Deputy Governor Diwa Guinigundo both spoke positively of the Philippines’ economic prospects. Investors have short-term jitters More specifically, Guinigundo said that the Philippines had succeeded in building a reputation for its ability to improve institutions, promote good governance, and demonstrate resilience in the midst of external stress. Whether the cause was external stress or investors’ political jitters, however, recent portfolio investments in the country have not been meeting expectations. The benchmark Philippine Stock Exchange (PSE) has been declining since August until the third week of September. Guinigundo even said that the Philippine peso was now “the worst performing currency in the region.” The benchmark Philippine Stock Exchange has been declining since August until the third week of September As pointed out Read More …