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BTC worker among 2 killed in Cotabato bombing

AN EMPLOYEE of the Bangsamoro Transition Commission (BTC), which drafted the Bangsamoro Organic Law (BOL) that is intended to strengthen peace efforts in the country’s south, was one of the two casualties in the Dec. 31 bomb blast in Cotabato City that also left more than 30 injured.
In a statement on Jan. 1, the BTC said Jonathan T. Torribiano was one of those who died, identifying him as a “hardworking, humble and peace-loving staff member” of Commissioner Melanio U. Ulama, the indigenous people representative in the commission.
“The Government of the Philippines and the Moro Islamic Liberation Front (MILF) as well as the Moro National Liberation Front (MNLF) and countless advocates, are very much in the forefront of establishing peace through the BOL. Hence, we can only view the bombing as a desperate attempt to sow fear in the people of Cotabato City whose great majority is yearning for true peace and human development,” the BTC said.
The Philippine National Police (PNP) has announced that it is creating a special investigation task group (SITG) to probe the blast on Monday afternoon at the South Seas Mall.
“I have directed the creation of an SITG to get into the bottom of this incident. We appeal to the public to remain calm but watchful and to immediately report to authorities (PRO12 Hotline Numbers: 09219898174; 09266500628) any information that may lead us to the suspects,” PNP chief Oscar D. Albayalde said on his official Twitter account on Dec. 31.
According to the latest PNP update as of Jan. 1, two civilians were killed and 34 others, including 10 minors, were hurt when the improvised explosive device went off.
Major General Cirilito Sobejana, an army division commander, told Reuters the bomb bore a “Daesh-inspired signature,” referring to Islamic State by another name. A second bomb was recovered in the same area, he said.
Mr. Sobejana said he suspected the blast was retaliation for the killing by government troops of seven members of a small militant group that has pledged allegiance to Islamic State.
Armed Forces of the Philippines Chief-of-Staff Benjamin R. Madrigal Jr. said the military is also considering the involvement of other groups in the blast.
“While we all know that the terrorist BIFF (Bangsamoro Islamic Freedom Fighters) and its breakaway group Daulah Islamiyah are the ones with the wicked desire to sow terror and inflict harm to innocent civilians, we don’t discount the possibility of other interest groups aligned with the same evil intentions to be involved,” said Mr. Madrigal in a statement on Monday evening.
He added, “The AFP on its part is continuously collaborating with the PNP who are leading the investigation as we are also cooperating with the local government of Cotabato City in the overall security of the city.”
Meanwhile, Autonomous Region in Muslim Mindanao Governor Mujiv S. Hataman also condemned the attack, which comes a few weeks before the Jan. 21 and Feb. 6 scheduled dates for the BOL plebiscite.
“We are irrevocably grieved about the casualties incurred, thoroughly condemn this act, and call for a thorough investigation. We need to make sure acts like these never happen again, and that the perpetrator is brought to justice,” said Mr. Hataman in a statement on last Dec. 31.
MILF chairperson Al Haj Murad Ebrahim, in a statement on Monday evening, did not discount the possibility that the terror incident could be a move to derail the Bangsamoro peace process.
“The motive is yet too premature to be concluded at this point, but we ask the authorities to examine all angles and make the result of the same public. We should not allow any party or group to make premature conclusions or draw insinuations so as to advance their own personal interest and political agenda,” he said. — Vince Angelo C. Ferreras with a report from Reuters

Multi-agency team to address foreign workers

A TECHNICAL working group (TWG) composed of representatives from the Department of Justice (DoJ), Bureau of Immigration (BI), and Department of Labor and Employment (DoLE) will be formed to address the influx of foreign workers in the country.
DoJ Undersecretary and spokesperson Markk L. Perete said Labor Secretary Silvestre H. Bello III requested the creation of a TWG.
“Officers from DoLE, DoJ, and BI will form the TWG and are set to meet this January,” Mr. Perete told the BusinessWorld in a text message last Dec. 29.
“As to the meeting, there is no specific date yet. But once the three offices are able to confirm who to designate as their representatives to the TWG, the TWG itself will be able to schedule and call meetings,” he added.
Mr. Bello made an earlier pronouncement that the DoLE is considering revoking the authority of the BI, an agency under the DoJ, to issue working permits to foreign nationals.
Mr. Perete also said that the internal TWG will study the joint guidelines and submit its recommendations to the inter-agency task force initiated by the DoLE last Nov. 15.
The task force, which “will conduct inspection and come up with joint guidelines in regulating the employment of foreign nationals in the country,” includes members from the DoJ, BI, DoLE, Department of Foreign Affairs, Professional Regulation Commission, and Department of Environment and Natural Resources, among others.
Justice Secretary Menardo I. Guevarra, for his part, said while he has not yet discussed the matter directly with Mr. Bello, the DoJ intends to “work very closely” with DoLE to address the issue.
He also said that there are other options that may be considered other than taking away the authority of the BI to issue working permits.
“(T)here are other options… such as tightening the rules on issuance of SWPs, BI personnel movements, and improved intelligence/technology to closely monitor aliens working in our country,” Mr. Guevarra said in a text message.
The DoLE, in 2005, authorized the BI to issue special working permits (SWP) to foreigners covering a six-month period. The DoLE issues an alien employment permit (AEP) to foreigners staying beyond six months.
An AEP is issued only if there are no Filipinos competent or able to do the job being sought by a foreigner.
During a Senate committee inquiry last Nov. 26, DoLE said the BI issued SWPs to 119,840 foreigners from 2015 to 2017, mostly Chinese who work for Philippine Offshore Gaming Operators.
DoLE, meanwhile, issued 115,652 AEPs from 2015 to 2017, of which 51,980 were given to Chinese nationals. — Vann Marlo M. Villegas

Moving forward, Toyota knows something its rivals are oblivious to

The transport network vehicle service industry was rocked early last year when Singapore-based Grab acquired the Southeast Asian operations of bitter rival Uber, essentially kicking out the American transport network company from the Philippines and subsequently cornering the bulk of the TNVS business in Metro Manila. To me, however, this wasn’t the biggest news about Grab in 2018. As an automotive journalist, I found Toyota’s sudden involvement in the transport startup more intriguing.
In June, Japan’s leading automaker announced that it was investing $1 billion in Grab. That’s an impressive amount of money whichever way you slice it. It indicates that the car-manufacturing giant is dead serious about the business of app-based ride service. At the time, my reading of the matter was that the move was largely so Toyota could get a head start in the area of data collection.
You see, motor vehicles will eventually be autonomous or driverless whether we like it or not. And for cars to properly operate unmanned, they will need to rely on a myriad of information — including what the busiest hours of the day are, which roads are accident-prone, or even where loading/unloading spots are specifically located. With thousands of Grab cars running around 24 hours a day in most major cities in the region, the TNC is the perfect source of such data.
Indeed, Toyota had installed its in-house-developed driving recorder called TransLog in 100 Grab cars even before it decided to invest in the ride-sharing firm. That project must have yielded fantastic results for Toyota engineers, so much so that their employer wanted to own a stake in the TNC.
And so I assumed that the substantial investment was merely Toyota’s way of preparing for an autonomous-driving future.
In October, a Toyota Motor Philippines (TMP) announcement convinced me that there could be more to the Toyota-Grab partnership than just self-driving vehicles of tomorrow.
TMP rolled out its Grab-specific sales program that offered exclusive deals to existing Grab drivers and operators. This includes easy financing packages via Toyota Financial Services Philippines, which is even throwing in P5,000 worth of free fuel to Grab drivers or operators who will purchase a new Toyota car for their TNVS gig. TMP, for its part, is shaving 30% off periodic maintenance service costs up to 80,000 kilometers of car mileage, as well as a 15% discount on batteries, air-conditioning cleaning, engine detailing and car accessories. The objective, obviously, is to sell more Toyota vehicles.
And then, in December, Toyota Motor Asia Pacific in Singapore held an online teleconference just to say it was implementing its Total-care Service, “a pioneering set of mobility services designed for ride-hailing companies” like Grab. A total of 1,500 Toyota cars owned by Grab in Singapore will benefit from this latest after-sales service initiative, which aims to provide “Grab driver-partners with more cost-efficient and timely maintenance services” based on data collected by the above-mentioned TransLog devices.
But there’s a small part in the press statement that I now wish to call your attention to, and it says: “In addition, both companies will work to increase the share of Toyota vehicles in Grab’s fleet in the region by 25% by 2020.”
Yep, still car sales at the heart of the partnership.
Does Toyota know something its rivals do not? Does the automotive giant now believe that the only way it can sustain its sales growth in the foreseeable future is by supplying vehicles to ride-sharing companies? More important, does Toyota think that car sales in certain markets — quite possibly including the Philippines, where TMP is expected to report a significantly lower sales tally in 2018 compared to the previous year — have plateaued, and that people are gradually but steadily moving away from personal car ownership in the advent of convenient TNC rides?
Funny, but my motoring Website (www.visor.ph) recently published an article about how the Chinese may stop buying automobiles altogether within the next 20 years. In that story, we pointed out how China’s transportation officials are now rapidly developing and perfecting a cloud system designed to interconnect autonomous cars. When this is fully implemented, the report said, Chinese folks will no longer have the need to purchase and own individual vehicles.
Are we moving in this direction? Nah. Thankfully, our government has no such foresight (or the ability to consider what’s best for everyone), so we can expect to still be buying and driving our own cars even when giant robots are already roaming the planet.

Typhoon Usman death count up to 75, missing at 16

THE LAST typhoon to hit the country in 2018, locally named Usman, claimed 75 lives with 16 still reported missing and 12 injured, according to the Jan. 1 update from the National Disaster Risk Reduction and Management Council (NDRRMC). As of 6 a.m. yesterday, NDRRMC said Office of Civil Defense regional offices reported a total of 45,348 families composed of more than 191,000 individuals were affected in the regions of CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon), MIMAROPA (Mindoro, Marinduque, Romblon, Palawan), Bicol, and Eastern Visayas. Of these, 6,637 families were still in evacuation centers. Out of the 206 flooded areas in CALABARZON, MIMAROPA, and Eastern Visayas, water has subsided in 107. The Philippine Coast Guard also reported that as of Dec. 31, there were no more stranded passengers and vessels in any port. “All fishing and shipping companies have already resumed normal operations,” the NDRRMC report said. A state of calamity was declared in the provinces of Albay and Sorsogon, both located in the Bicol region.
AGRI DAMAGE
The Department of Agriculture, meanwhile, reported P299.4 million worth of damage in the four affected regions. In an update as of 5 p.m. of Dec. 31, DA said an estimated 9,606 metric tons (MT) of farm products in 13,862 hectares were damaged, affecting 11,231 farmers. Rice loss was P266.98 million at 7,496 MT. Corn loss was reported at P976,267, with 11 MT. Fruit trees, assorted vegetables and root crops classified as high value crops worth about P31.48 million were also damaged. — Reicelene Joy N. Ignacio

PHL-US treaty review to help in future agreements with other countries

By Vince Angelo C. Ferreras
ANALYSTS agreed with the call of Defense Secretary Delfin N. Lorenzana to review the decades-old Mutual Defense Treaty with the United States, a move that is seen to help with the Philippines’ future agreements with other countries.
“…What Defense Secretary Lorenzana wanted to happen is to make the military agreement, this treaty to be more specific so not in any other way jeopardize our future mutual defense treaty with other countries. If we look at the mutual defense treaty, it is purely general and we have to remember, the government is now pursuing interdependent military and diplomatic relationship with other countries,” said University of Santo Tomas (UST) political science professor Marlon M. Villarin in a phone interview with BusinessWorld last Dec. 29.
“Of course the President and Defense Secretary Lorenzana wanted to make our defense treaty and alliance with the US to be more specific so as not put a cloud of doubts in the events that we will enter into another mutual defense treaty with another country,” he added, citing Russia in particular as one of these nations.
Meanwhile, Ateneo Policy Center research fellow Michael Henry LI. Yusingco said the review of the treaty is reasonable given the threats of terrorism in the country.
“The fact is, there are threats to our national security now, such as terrorism, which were not considered when the mutual defense treaty was agreed upon. The geo-politics of Asia was vastly different as well. So the call for review is only reasonable. Undertaking the review should be an utmost priority,” said Mr. Yusingco via email to BusinessWorld last Dec. 29.
He added in a separate phone interview on the same day, “‘Yung (That) treaty kasi when that was agreed upon, on my personal view, they were only contemplating acts of aggression by states. Kung halimbawa lusubin tayo ng ISIS, hindi naman siya state (If, for example, the ISIS attacks us, that’s not a state). So therefore, there is a question if the mutual defense treaty will apply.”
MORE VULNERABLE
But while analysts agree with Mr. Lorenzana’s call for review, they said that scrapping the treaty will only make the Philippines vulnerable to threats.
Last Dec. 28, Mr. Lorenzana hinted at the possibility of scrapping the 1951 Mutual Defense Treaty if the review will find it irrelevant in today’s national interest.
“That was done in 1951, there was this raging Cold War. Do we still have a Cold War today? Is it still relevant to our security. Baka hindi na?” Mr. Lorenzana said during a press briefing at the Malacañang.
Foreign policy expert and political analyst Richard J. Heydarian said the alliance with the US also benefits the Philippines in disaster response.
“It is our biggest important insurance…Without an alliance, I don’t think we are in the condition to respond to Haiyan-like kind of tragedy….You can raise doubt on their stand about the South China Sea, but I think there is a little doubt to raise on their help in counterterrorism…not to mention the long standing training of Filipino troops, Filipino officers, provision of high grade equipment and of course intelligence,” he said in a phone interview with BusinessWorld on last Dec. 29.
He added, “So I think realistically there is no reason for this administration to scrap the alliance, because at this point of time, we cannot stand on our own yet. Let’s just be brutally honest about that….What is happening in the South China Sea and the Marawi incident that happened, only shows how vulnerable our country to external threats.”
Mr. Villarin shared the same sentiment: “Of course, number one it may politically affect the military strength and defense of the Philippines. We need to remember that we need the US… It is our way of guaranteeing our defense security.”
Mr. Villarin further said, “Also, we have to remember that the Mutual Defense Treaty, marami na tayong napakinabangan dito (We have benefited a lot from it). It gives the government an alternative way of strengthening and making our Armed Forces of the Philippines capable of providing security to our country. It gives us a window of opportunity to make progressive change in services of our armed services.”
For his part, UST Political Science Department chairperson Dennis C. Coronacion said scrapping the treaty might be impossible, but should it happen, the country would be left open to attack.
“Malabo mangyari ‘yun (That’s impossible to happen). But, hypothetically speaking, that would leave us open to attack by a foreign power,” said Mr. Coronacion in an online interview with BusinessWorld on Dec. 29 .
“Since our military doesn’t have the capacity for external defense, yes, the MDT is deemed essential for our security,” said Mr. Coronacion, “Kasi nga (Because) after several decades, wala pa rin tayong (we do not have) external defense capacity. That’s why we still rely on the protection provided by the United States.”
Mr. Yusingco suggested that the treaty could be amended or replaced instead.
“Again, the decision need not be to scrap it all together,” he said.
Analysts also believe that the motive of Mr. Lorenzana in announcing the possibility of scrapping the alliance is to seek assurance from the US on its commitment with the Philippines.
“What Defense Secretary Lorenza wanted to make an impression (on) is if the US is really sincere about their commitment in strengthening their alliance, political and military alliance with the Philippines,” said Mr. Villarin.
Mr. Coronacion also said, “The only possible motive of Secretary Lorenzana for saying those words about scrapping the MDT if it wouldn’t be modified to address our needs today is to seek assurance from the US that it is firmly committed to the alliance.”

Welcoming 2019

Fireworks spectacles sponsored by local government units and commercial establishments have become more common during New Year’s eve in different parts of the Philippines as the government campaigns to minimize fireworks-related injuries (FRIs). The Department of Health (DoH) reported on Jan. 1 that the number of FRIs dropped 68% during the period Dec. 21, 2018 to 6 a.m. of Jan 1, 2019 at 139 cases compared with the same period the previous year. “It’s markedly lower than last year. Thankfully,” DoH Secretary Francisco T. Duque said in a televised press conference. No casualty was reported while stray bullet incidents are still being investigated by the police. — Gillian M. Cortez

Zamboanga City prepares business permit one-stop-shop

THE BUSINESS Permits and Licensing Office (BPLO) of Zamboanga City is now setting up the Business One Stop Shop (BOSS), which will be in operation from Jan. 3 to Jan. 20. The BOSS, located at Centro Latino in Paseo del Mar, is intended to simplify and speed up the processing of the annual business permits. It will be open from 8 a.m. to 8 p.m., Monday-Friday, and 8 a.m. to 5 p.m. on Saturdays, Sundays and holidays during the 18-day period. The BOSS will be manned by personnel from the BPLO, Computer Division, General Services Office, and Centro Latino.

3-ha Cebu SRP lot up for auction; Jan. 23 set for opening of bids

THE three-hectare lot at the South Road Properties (SRP) in Cebu has been opened for public bidding by the city government. “All bids must be accompanied by a bid bond in the form of Cash of Manager’s Check in the amount equivalent to 10 percent of the bid amount. Bidders bond of all losing bidders shall be returned when the award is concluded,” reads a portion of the bid invite published on Dec. 21 and 26. The property covers Lot 1-F-8, Psd-07-075186 with an area of 29,881 square meters (sq.m.). It is located in the SRP’s Pond F area, which is near the property of Filinvest Land Inc. or the open space going to the Department of Public Works and Highway-Region 7. The property is valued at P3.3 billion, or P110,000 per square meter. Assistant City Administrator for Administration Veronica Morelos said the sale of bid documents will be from Dec. 28, 2018 until Jan. 22 at the city’s Department of General Services office. Mayor Tomas R. Osmeña initially wanted to dispose of the property through an unsolicited proposal. Last April, Federal Land, Inc. expressed interest to purchase the property at P115,000 /sq.m. However, Mr. Osmeña has dropped the plan as the Commission on Audit has not responded to the communication of the city government on the proposal. The opening of bids will be on Jan. 23. — The Freeman

Nation at a Glance — (01/02/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
Nation at a Glance — (01/02/19)

Traditional art, social media smarts: Marius Black’s hopeful, woodblock Manila

Only now, over a decade into his career as an artist, Marius A. Funtilar feels he’s finally found a semblance of success. With it, Funtilar — known professionally as Marius Black — says he’s come full circle.
“If [I] were to tell my younger self that it would take me 15 years [to reach this kind of success], I would have given up then,” he said.
Last Dec. 14, Funtilar launched his fourth solo show, “Unnoticed Beauty”,  at Kendo, a cafe-cum-gallery in Cubao, along with an accompanying book exploring pieces from his Manila Ukiyo-e series, where he recreates scenes from the urban jungles of Metro Manila in the style of traditional Japanese woodblock print.
Funtilar’s early work consisted heavily of self-portraits and comics produced with his wife. Culled from the world around him, his scenes were dominated by stark black and white, with streaks of yellow and red. He describes those early pieces as attempts at releasing a darkness in him, manifesting in surrealist oil paintings.
Today, Marius Black is best known for the beautiful narratives of hope he tells through his bright depictions of everyday Manila. Same setting, different story.

Manila Ukiyo-E is a series of hand-painted art prints depicting the daily goings-on of Manila’s denizens, “not giving up their right to exist and still enjoy life here in the Philippines.” Funtilar hopes the series might serve to inspire audiences by highlighting the silent courage of struggling through day after day in Metro Manila.
Funtilar begins each piece with his digital camera, snapping shots of his surroundings. He uses these photos as references for his artworks, outlined in pencil, then inked.
The hand-drawn pieces are then scanned and printed on watercolor paper. Funtilar brings the scenes to life with watercolors, gouache, and color markers, making each artwork in Manila Ukiyo-E a print-original hybrid.
“I found what was buried in me: I love colors, I love working on papers,” he said. “I just came back.”

A wider reach

As Funtilar worked through the darkness of his early art and began producing what would become his signature style, people began to take notice. But it wasn’t in galleries that he found his following. Like so many modern success stories, he found his success on social media.

“I had to unlearn all that I learned as a gallery curator,” he said. “The landscape is changing so you have to rethink everything, from how you produce to how you show your art.”
On platforms like Facebook, Funtilar was able to reach a wider audience. On Reddit, he could interact with fans and get commission jobs — more now than he can handle, he admits. And it was through social media that he received his biggest gig yet: working with the Light Rail Manila Corp. (LRMC) to create large-scale Manila Ukiyo-e pieces for the LRT Ikot campaign.
Back in October, Funtilar’s ‘Antay’, a bright rendition of the LRT EDSA station, made its rounds online, catching the eye of LRMC president and chief executive officer Juan F. Alfonso. As with the rest of the series, ‘Antay’ found the beautiful in the ordinary. Gritty in its realism, but hopeful in its depiction— mirroring Funtilar’s own paradigm shift.
“I was able to make something, subconsciously, a scenery that is heartbreaking but palatable, I guess, but colorful. I give it a story just to [show] what I see as hopeful,” he said. “It’s how I want to imagine the world to be, from what I see.”
Funtilar’s work can be found on his website and on Instagram @mariusblackarts.
 

Inflation likely eased in December — BSP

By Melissa Luz T. Lopez, Senior Reporter
INFLATION likely eased further in December, the Bangko Sentral ng Pilipinas (BSP) said, with the rate possibly settling at the five percent level given lower fuel and rice prices.
The BSP Department of Economic Research said on Friday that December inflation could range between 5.2-6%, which if realized will be the slowest since at least July.
“The sustained slowdown of inflation during the month is seen to be driven mainly by the continued decline in petroleum and rice prices, the rollback in minimum jeepney fare, and the slight appreciation of the peso,” the central bank unit said in a statement sent on Friday.
The Philippine Statistics Authority (PSA) will report December inflation data on Jan. 4, 2019.
Inflation clocked in at six percent in November, easing from nine-year highs of 6.7% logged in September and October. Still, the BSP forecast meant that prices have risen faster compared to a year ago, with the December 2017 rate tallied at 2.9%.
Retail pump prices declined further this month to mirror trends in the world crude market, at a time of ample supply coupled with uncertainties in the global economy amid trade tensions between the United States and China. According to the Department of Energy’s oil monitor, the price per liter of gasoline, diesel and kerosene posted net declines year-to-date as of Dec. 18.
In response, the Land Transportation Franchising and Regulatory Board took back the P1 increase in minimum jeepney fares implemented in November, leading to a decline in transport costs.
A stronger peso versus the dollar also helped reduce oil import payments, the BSP said, after the local unit traded at the P52 level this month.
For food, PSA data also showed sustained decreases in the retail price of well-milled and regular milled rice in December.
ELECTRICITY RATES UP
However, the BSP said higher electricity rates could partly offset lower prices of other commodities.
Power distributor Manila Electric Co. announced a P0.0902 per kilowatt-hour increase in utility rates for December, marking a second straight month of a higher charge due to bigger generation costs.
“Moving forward, the BSP will continue to closely monitor evolving price trends and domestic demand condition to help ensure that the inflation target is achieved,” the central bank added.
Inflation has averaged 5.2% from January-November, matching the full-year forecast of BSP but remains well above the government’s 2-4% target band.
The Monetary Board decided to raise benchmark interest rates by 175 basis points (bp) this year to cool inflation expectations and rein inflation back to target in 2019, marked by a back-to-back increase of 50bp each in September and October to mark the BSP’s most aggressive tightening move in over a decade.
Central bank officials kept interest rates steady during their Dec. 13 meeting, as they now expect prices of widely-used goods to trek a “lower path” over the next two years. Inflation will likely return to below four percent by the end of the first quarter of 2019, while the full-year print is seen averaging at 3.2%.
DECLINE SUSTAINED
In a separate report, economists at First Metro Investment Corp. (FMIC) and the University of Asia & the Pacific expect December inflation to inch lower to 5.9%, with the deceleration seen to spill over next year.
“Inflation is on a clear downtrend and should go below 5% (year-on-year) in Q1 2019 and steadily fall for the rest of 2019. Lower food prices and very soft crude oil prices should more than offset the increase in minimum wage and transportation rates,” the FMIC analysts said in its December issue of The Market Call.
In turn, easing inflation should help boost overall economic growth.
“Rapidly decelerating inflation, robust job gains and election spending, which should start in November 2018, and OFW peso remittances should provide ammunition for a recovery in consumer spending both in Q4 2018 and in 2019,” the report read.
FMIC expects Philippine gross domestic product to expand by 6.5% this year, matching the low end of the revised 6.5-6.9% target set by the Duterte administration.

Gov’t sets P360-B borrowing program for Q1

By Melissa Luz T. Lopez, Senior Reporter
THE government is looking to borrow P360 billion during the first three months of 2019 through a mix of short and long-term papers, a third bigger than the amount programmed the previous quarter.
The Bureau of Treasury released its borrowing program for the first quarter, which is higher than the P270 billion it looked to raise from October to December 2018.
Broken down, the state wants to shore up P240 billion from Treasury bills (T-bills) next quarter, higher than the P180 billion previously. The government is also eyeing P120 billion from the sale of Treasury bonds (T-bonds) coming from P90 billion in the fourth quarter of 2018.
The national government borrows from local and foreign sources to fund the increased spending and boost economic activity.
T-bill auctions will be held every Monday at P20 billion each week. This will be split into P6 billion each for the 91 and 182-day tenors, plus P8 billion for the 364-day notes.
In the previous quarter, the Treasury offered P15 billion worth of T-bills weekly, divided into P4 billion for the three-month debt papers, P5 billion for the six-month instruments, and P6 billion for the one-year IOUs.
On the other hand, the government will float a mix of T-bonds from January to March worth P20 billion every other week. The Treasury will offer 10 and 20-year papers on Jan. 10 and 24, followed by seven and three-year notes on Feb. 14 and 28, and five and 10-year instruments on March 14 and 28.
The state plans to borrow P1.189 trillion in 2019 to fund its spending plan. Of the amount, 75% will be sourced domestically while the remainder will be from foreign creditors.
Apart from T-bills and T-bonds, the government may also choose to float other debt instruments in other currencies like the dollar, yen and renminbi to offshore investors. Specific-use bonds are also being eyed to support the rehabilitation of Marawi City.
However, the 2019 national budget is yet to be passed by Congress and signed into law, leaving the fiscal program hanging so far. Economic managers of President Rodrigo R. Duterte said they will reassess their assumptions and estimates by late January, according to Budget Secretary Benjamin E. Diokno.
The budget deficit is projected to widen to as much as 3.2% of gross domestic product in 2019, versus a programmed three percent share this year to accommodate increased government spending particularly on infrastructure.