Surge in remittances expected

 Economy
Nov 252013
 
Surge in remittances expected

MANILA, Philippines – A surge in remittances from Filipinos abroad may be seen in November and December following the destruction caused by Super Typhoon Yolanda, a central bank official said. Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa  C. Guinigundo said that Filipinos abroad are expected to send more to their families in the Philippines, especially those in hard-hit areas, as they rebuild their homes and businesses. “We might see a strong inflow come November because there are also reports indicating that families who were displaced by the super typhoon have members who are working abroad,” Guinigundo said. “What we would expect is aside from the normal level of remittances that they send, probably they will increase that precisely to cover the extra cost of rehabilitation and rebuilding the homes and their business,” he continued. Yolanda, which ravaged the Visayas region earlier this month, has killed more than five thousand and destroyed billions of pesos worth of infrastructure and agriculture. “We would expect that in November, perhaps even in December, there could be some spikes in terms of remittances,” Guinigundo said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We could probably see stronger growth (in remittances) than in the other months of 2013,” he added. Cash remittances hit $16.480 billion in the first nine months of the year, 5.8 percent higher than the $15.571 billion recorded in the first same period last year. Historically, the country sees a jump in the volume of remittances for the month of Read More …

60% of banks in Samar, Leyte back to normal

 Economy
Nov 242013
 
60% of banks in Samar, Leyte back to normal

MANILA, Philippines – The central bank on Monday said about 60 percent of banks in typhoon-hit Leyte and Samar have resumed their operations nearly two weeks after the massive destruction caused by typhoon Yolanda. Data from the Bangko Sentral ng Pilipinas (BSP) show that 102 banks out of the 171 banking offices in Leyte and Samar are back in operations as of Nov. 21. Meanwhile, only 63 out of the 204 automated teller machines (ATMs) in the two provinces are back online. The central bank said in the six provinces hit by Yolanda- Leyte, Samar, Cebu, Aklan, Capiz and Palawan- 742 of the 855 banking offices have resumed operations while 931 of the 1,203 ATMs are now online. However, BSP Deputy Governor Nestor Espenilla, Jr. said only five out of the 44 banks in Tacloban City resumed operations during the same period. He said banks in the city are finding it hard to resume operations after the typhoon, and damaged equipment and unavailable employees make it difficult to resume operations. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “They need to bring in new ATMs among others because those being used before the typhoon were heavily destroyed,” Espenilla said. He added that there were isolated cases where ATMs were stolen. Espenilla said he expects most of the banks in Tacloban to reopen by the end of the year.

Remittances seen to surge this year

 Economy
Nov 232013
 
Remittances seen to surge this year

MANILA, Philippines – The country is expected to see a sustained robust inflow of remittances amid an improving global economy and as Filipinos abroad are expected to send more money to their families following recent calamities. The research arm of the Metropolitan Bank and Trust Co. said in a weekly report that remittances growth is expected to hit six percent this year, faster than the five-percent assumption of the Bangko Sentral ng Pilipinas. “Research forecasts annual remittances growth this year to be at six percent amid prospects of more positive growth in some major OFW (overseas Filipino workers) host countries,” the bank said. Money sent home by Filipinos living and working abroad summed up to $16.480 billion in the nine months January to September, up 5.8 percent from the $15.571 billion recorded in the same period last year. Metrobank noted that aside from rosy prospects in countries with a big number of Filipino workers, the 7.2-magnitude earthquake and the Super Typhoon Yolanda that devastated the Visayas region are expected to boost remittances. “The recent calamities that struck the Visayas region is seen to further prop remittance inflows as we close the year, in addition to the expected surge in time for the holiday season,” Metrobank noted. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last year, remittances amounted to $21.391 billion, 6.3 percent higher than the $20.117 billion seen in 2011. The continued growth in remittances this year is foreseen to further boost the country’s economic output as money Read More …

Banks in the Philippines prepared to meet Basel III standards

 Economy
Nov 142013
 

LENDERS in the Philippines are readying themselves for a further tightening of regulatory oversight, with the requirements of Basel III, as adapted by the Bangko Sentral ng Pilipinas (BSP), due to come into effect at the beginning of next year. While the transition is not expected to be overly burdensome, the cost of greater security could be a short-term dip in profits.

Remittances grow fastest in seven months – Bangko Sentral

 Entertainment
Oct 222013
 
Remittances grow fastest in seven months – Bangko Sentral

A man arranges his peso bills inside a currency exchange shop Friday, Nov. 9, 2007, in Manila, Philippines. The dollar closed Friday at 42.795 pesos, where the peso rose to a new seven-year high on prospects of further U.S. interest rate cuts and likely increases in remittances from Filipinos overseas. (AP Photo/Pat Roque) MANILA (Mabuhay) – Money sent home by Filipinos who live and work overseas quickened to its fastest pace in seven months last August, fueled by sustained deployment of workers abroad, the Bangko Sentral ng Pilipinas said Wednesday. Cash remittances – money sent through banks and transfer agents – grew at annual rate of 6.8 percent to $1.918 billion in August, preliminary central bank data showed. This is the fastest growth rate since January’s revised 8 percent increase, according to central bank records. Total cash transfers grew by 5.9 percent to $14.545 billion in the first eight months of the year, above a Bangko Sentral forecast of 5 percent for 2013. “The steady deployment of OF (overseas Filipino) workers remained one of the key drivers of the growth in remittance flows,”  Bangko Sentral noted in a statement. According to Philippine Overseas Employment Administration data, approved job orders in January to August rose 39 percent annually, primarily in services, production and technical jobs in Saudi Arabia, United Arab Emirates, Kuwait, Taiwan, Hong Kong and Qatar. Listed Bank of the Philippine Islands’ (BPI) lead economist Emilio Neri Jr. gave a bank’s perspective to remittances. “August was disaster ridden, and we Read More …

Gov’t may prepay 2014 borrowings reqm’t

 Economy
Oct 042013
 
Gov’t may prepay 2014 borrowings reqm’t

MANILA, Philippines – The government is looking to prepay its 2014 borrowings requirements to take advantage of the country’s low interest rates and excess liquidity. “We need to be flexible. We’re considering several options including possible prefunding to lock in currently low interest rates as well as increased investor appetite,” National Treasurer Rosalia De Leon said in a text message. De Leon said the government is hoping to tap the P1.4 trillion funds expected to exit the Bangko Sentral’s special deposit accounts (SDAs). Banks were given until the end of November to withdraw all funds from the SDA facility. Budget and management Secretary Florencio Abad said the county’s deficit is expected to ease further this year if the Supreme Court fails to lift an order stopping the release of the remaining P14.7 billion out of the P24.7 billion Priority Development Assistance Fund (PDAF) this year. Abad said a lower deficit will translate to lower borrowing needs for the government , lower liabilities and huge interest payment savings. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 As of end-July this year, the government’s deficit stood at  P104.51 billion, still well below its full-year forecast of P238 billion. The Philippines plans to raise nearly all of its debt requirements locally amid near record low interest rates and a highly liquid financial market. The Aquino administration has programmed to borrow P735 billion of debt this year (P630.6 billion locally and P104 billion overseas). Domestic borrowings are mostly composed of the usual Treasury Read More …

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