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Black River acquires stake in AgriNurture

A SINGAPORE-BASED fund bought P682.1 million worth of shares in AgriNurture, Inc. (ANI), following the exit of another investor in the company.

In a disclosure to the stock exchange, the listed agribusiness firm said Vikings Asia Agri Ventures BV has sold 50 million ANI shares at a price of P13.642 apiece through a block sale on Thursday.

The shares were then acquired by Singapore-based fund Black River, a wholly-owned unit of Black River Capital Partners Fund (Food) LP.

“It’s a boost of confidence,” ANI Chairman, President and Chief Executive Officer Antonio L. Tiu said in a statement.

Black River Capital is a unit of US-based asset management firm Black River Asset Management LLC, which is a food-focused fund. The same company acquired a 28.11% stake in ANI in 2012 for $30.45 million, but later on divested from the firm.

ANI remains optimistic for its prospects in the second half of the year, banking on the approval of the Rice Liberalization Law to allow it to import rice. It also looks to increase its sales volume of banana, mango, and beverage products.

The company’s net income attributable to the parent grew 255% to P32.28 million in the first half of 2019, as revenues also climbed 184% to P2.4 billion.

Shares in ANI rose 3.76% or 54 centavos to close at P14.90 each at the stock exchange on Thursday. — Arra B. Francia

Indonesia slashes interest rates to support growth

CENTRAL BANK OF INDONESIA in Jakarta — WIKIPEDIA

INDONESIA cut interest rates for a second straight month to spur an economy facing increasing risks from a global slowdown and intensifying trade war.

Bank Indonesia (BI) lowered its seven-day reverse repurchase rate by 25 basis points to 5.5% on Thursday, a move predicted by only 13 of the 34 economists surveyed by Bloomberg. The majority expected the bank to keep policy unchanged after it lowered rates for the first time in almost two years in July.

Governor Perry Warjiyo said the rate cut was consistent with the bank’s low inflation forecast and serves as a “preemptive measure to push economic growth momentum in the future.” The move also retains the attractive yield on domestic assets, he said.

Indonesia is using a mix of monetary and fiscal policy to stimulate Southeast Asia’s biggest economy after growth slowed to a two-year low in the second quarter. Low inflation and the Federal Reserve’s dovish policy outlook is giving Bank Indonesia room to reverse some of last year’s rate hikes.

“Indonesia is lucky with its continuing economic growth momentum, but we must take anticipative, preemptive steps in facing the risks of a slowing global economy,” Warjiyo said.

Central banks in emerging markets like India, Brazil and Russia — and, closer to home, Thailand, Malaysia and the Philippines — have all cut rates this year to reignite growth.

The Jakarta Composite Index rallied immediately after the rate cut, but was down 0.1% as of 2:53 p.m. local time.

Warjiyo said the central bank will “continue its accommodative policy mix.” It sees growth for this year below the government’s projection of 5.2%, while inflation will probably come in below the midpoint of the 2.5% to 4.5% target band.

“It seems that growth worries have taken on a greater urgency,” said Eugene Leow, a fixed income strategist at DBS Group Holdings Ltd. “And with many central banks across the world easing, BI probably felt comfortable enough to follow suit.”

Indonesia’s rate cut complements President Joko Widodo’s plans — outlined in his budget last week — to boost growth to 5.3% next year through record spending of $178 billion and tax incentives to businesses. The economy grew 5.05% in the second quarter, a far cry from the 7% growth the president targeted in his first term.

Most economists predicted the central bank would keep rates on hold this month given heightened market turmoil and a widening in the current account deficit. The rupiah has slumped almost 2% against the dollar in the past month, though it’s still among a handful of gainers in Asia this year.

Inflation at 3.32% in July was well within the central bank’s target band. — Bloomberg

Ryanair fails to stop UK pilots’ strike but wins case in Ireland

LISBON — An Irish court granted an injunction on Wednesday to prevent Ryanair’s Dublin-based pilots from going on strike, but the airline suffered a setback hours later when a London court rejected a similar application for its British pilots.

Ryanair is battling to prevent employees from taking industrial action. Last year strikes over pay and conditions forced the Irish airline to cancel hundreds of flights.

Ryanair welcomed the Irish High Court ruling, saying all flights scheduled to depart on Aug. 22 and 23 from Irish airports would operate as normal.

But the airline said it regretted the decision by under 30% of its UK pilots to strike on Thursday and Friday in “support of unreasonable pay demands.”

After the High Court decided against granting Ryanair an injunction to prevent the strike, the British pilots’ union BALPA offered to call off the action if the airline agreed to a new framework of talks.

However, Ryanair turned down the offer and the British union said the strike will go ahead.

“Ryanair foolishly tried to stop our strike in the High Court today and failed. Despite that, we extended an olive branch to Ryanair as a way of getting back around the table and calling off strikes over the next two days,” Strutton said in a statement.

Separately, a five-day strike by Ryanair’s cabin crew in Portugal is underway but disruption to passengers appeared minimal, with no canceled flights or major delays.

In a statement released on Wednesday afternoon, Ryanair said more staff than needed showed up to work at Portuguese airports on Wednesday morning and there would be no significant disruption to flights to and from the country during the rest of the day.

Portugal’s SNPVAC cabin crew trade union met with the Portuguese Minister of Infrastructure and Housing on Wednesday to discuss the labor situation, including the impact of the possible closure of Ryanair’s base in Faro.

SNPVAC president Luciana Passos said 70%-80% of crew members were currently on strike, though there were no major delays or cancellations at Lisbon, Porto and Faro airports.

“This (strike) is an attempt to once again draw attention to the problems faced by Ryanair crew members, to the way Ryanair operates in Portugal and the total impunity with which Ryanair operates,” Passos said.

Ryanair’s management says significant progress has been made since last year’s strikes, with collective labor agreements concluded with a number of pilot unions throughout Europe.

But SNPVAC said Ryanair had refused to comply with a protocol signed last November, which it said included holiday pay, 22 days of annual leave per year and full compliance with Portuguese parental law.

At the height of the summer season, Portugal’s government set out a minimum service for Ryanair and its staff to deliver, including a daily round trip between Lisbon and London.

SNPVAC said the minimum service order was “abusive” and undermined the right to strike.

Belgium’s CNE and ACV PULS unions told members on Tuesday not to comply with a Ryanair request to staff flights affected by the Portuguese action.

Spain’s STICPLA union also sent a letter to members, advising they were not obliged to “answer company calls” if they were in their rest time, on days off or on holiday.

Unions representing cabin crew in Spain said their plans for 10 days of strikes next month still stood after more than seven hours of mediated talks with the airline ended on Tuesday without agreement. — Reuters

Your Weekend Guide (August 23, 2019)

Koryolab at the CCP

ON August 24 and 25, five new choreographic pieces will be premiered in Koryolab at the CCP Studio Theater at 2 p.m. and 6 p.m. The five new works were created by five dynamic young choreographers mentored by Gawad CCP awardee Denisa Reyes, and internationally renowned choreographer and teacher Myra Beltran. These contemporary pieces tackle memories of forgotten childhood in Sarah Samaniego’s Alala, and the unique world within the world of the malls in which we now live as shown in Mano: Fracture by Buboy Ruatico Jr. Christopher Chan’s Men-Ta-Li-Tic opens the mind to how norms hinder us from accessing truth while Buhay Pag Asa by Dingdong Selga is a painful tale of children in cramped cells. Finally, Michael Barry Que’s Suggested for you deals with the contemporary phenomenon of Instagram. Tickets are available at all TicketWorld outlets. For more information, call 832-1125 local 1409.

Dancing Lessons

TWIN Bill Theater presents Mark St. Germain’s Dancing Lessons until Aug. 24 at Power Mac Center Spotlight in Circuit Makati. Directed by Francis G. Matheu, the play follows Ever Montgomery, a young science professor with special needs who decides to take dancing lessons to get through an upcoming awards dinner he will host. However, his instructor, Senga, is recovering from an injury that may prevent her from dancing permanently. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Mabining Mandirigma, A Steampunk Musical

Monique Wilson plays the “sublime paralytic” in Mabining Mandirigma. — PHILSTAR/ GIAN CARLO VIZCARRA

TANGHALANG Pilipino restages Mabining Mandirigma, A Steampunk Musical about the life of hero and “sublime paralytic” Apolinario Mabini at the Main Theater of the Cultural Center of the Philippines until Sept. 1. The 2019 run stars Monique Wilson as Mabini. Arman Ferrer will be reprising his role as Emilio Aguinaldo, alternating with David Ezra. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Dani Girl

THE Sandbox Collective restages Michael Kooman and Christopher Dimond’s Dani Girl at the Carlos P. Romulo Auditorium, RCBC Plaza in Makati City until Sept. 1. Directed by Toff de Venecia, the musical centers on nine-year-old Dani who sets off on a quest to find her hair and figure out the answer to the question, “Why is cancer?” She journeys with fellow warrior and best friend Marty, through lightsaber duels, game shows, and blasting off to outer space. The play stars Rebecca Coates as Dani alternating with Kyle Napuli. Luigi Quesada returns as Marty, alternating with Daniel Drilon. For inquiries, call 0956-200-4909, 586-7105 or sab@thesandboxco.com.

Rak of Aegis

THE hit Pinoy jukebox musical Rak of Aegis returns to the PETA Theater Center, with ongoing performances until Sept. 29. The show features Aegis hits such as “Halik,” “Sinta,” and “Basang-Basa sa Ulan,” to tell the tale of a perennially flooded barangay. This latest production features a mix of original cast members including Aicelle Santos and Kim Molina, Isay Alvarez-Seña and Sweet Plantado-Tiongson, Robert Seña and Renz Verano, and Kakai Bautista and Neomi Gonzales. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

AirAsia’s online retail platform partners with Regent Asia

OURSHOP, the online retail platform of AirAsia group, said it has partnered with travel retail brand Regent Asia Group to allow travelers to pre-purchase and collect the items at the Ninoy Aquino International Airport (NAIA) Terminal 3.

International passengers who fly to and from the Philippines will benefit from the online travel retail partnership, enabling them to purchase a wide array of global and local brands.

The Regent Asia online store will be available on OurShop.com by early September.

“The Philippines is a hugely important market in terms of the strategic growth of OurShop, and we are thrilled that such a globally respected travel retailer such as Regent Asia have agreed to partner with us. Manila’s (NAIA 3) alone serves some 22 million guests per year, presenting what is a huge opportunity for us to expand our offering beyond just the 2 million international passengers who fly with AirAsia each year,” OurShop head of acquisition Hassan Choudhury was quoted as saying.

Regent Asia Group Chairman and Managing Director Jose Maria Esteban said the company is looking forward to providing travelers at NAIA 3 a more efficient online shopping experience.

Walking the talk

Dr. Jesus Estanislao of the Institute of Corporate Directors once graced a governance forum at the Development Bank of the Philippines (DBP) where he extolled the values of integrity, fairness and accountability in all that we do. Being a development bank, he asked DBP to remember they work not just for the themselves and the institution but for a larger community, not just for today but for the future.

The DBP Credo proclaims: “I believe the mission of DBP is to make the Filipino productive and competitive.” Dr. Estanislao, who presided over the institutional strengthening of DBP as its Chairman in the late 1980s, reminds the staff to go beyond words. What we say we must do.

To ensure order in one’s life, we have to be men and women well grounded in basic principles and with clear direction. We cannot be without a framework. Progress is not achieved by people who ask and demand from others without first asking of themselves on how they can contribute positively to the general welfare. Basic in this framework is integrity which serves as one’s passport and competence which represents one’s tool.

In short, we must walk the talk. A person’s own talk represents what one believes in, and this should translate to what one actually does in life and in work. It means backing up or proving what’s said with action and practicing what’s preached.

In my book, walking the talk is leading with integrity. Integrity involves character, honesty, transparency and accountable leadership. Individuals with integrity in the workplace not only understand what is right from what is wrong, but they practice it in day-to-day and strategic decision making. In a business environment characterized by integrity, an atmosphere of trust develops which sets the foundation for teamwork and professionalism in business relations.

It is unfortunate that the workplace is littered with people who simply talk the talk. They are good at picking the right words, even delivering sermons about certain desirable behavior. They talk like they are saints, but their actions reveal their worth. They make all kinds of demands from others, but they themselves are lacking in many ways as they get entangled in conflict of interest positions. At the end of the day, these people are only good at being phony and appearing in a way that impress people. But they actually behave otherwise. Talking the talk is about being good at the art of pretext. I once read a comment in Quora which quotes from a Hollywood cliché: “Sincerity is the key to success in Hollywood. Once you can fake that, you can get anything.”

Integrity is critical to fostering a positive workplace culture. It leads to good decision making and correct actions and implementations. The alternative is irresponsible behavior and distrust which makes the work environment uncomfortable and tense. A leader with integrity will gain the trust and respect of the organization. An organization headed by trusted leaders, whether in the board level, in management or in the various units in the structure, will ultimately perform better.

Recently, Manila Mayor Isko Moreno launched an “anti-epal” policy that explicitly prevents politicians’ names and faces from adorning government initiatives. However when Eastern Communications launched the free wi-fi kiosks in Manila, they named it “ISKOnek.” The move drew a lot of flak in social media, and true to form, Mayor Isko ordered the change to “MNLkonek.” By his immediate response, the new mayor showed he could walk the talk.

In a previous column I entitled “Integrity is Forever,” I quoted from Amy Rees Anderson who wrote: “integrity means doing the right things at all times and in all circumstances, whether or not anyone is watching. It takes having the courage to do the right thing, no matter what the consequences will be.” She advised that if you want to build a reputation of a person of integrity, then surround yourself with people of integrity.

The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

 

Benel D. Lagua is Executive Vice President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs.

What to see this week

5 films to see on the week of August 23 — August 29, 2019

Buckout Road

A SCENE from Buckout Road.

THREE college students travel to the famed and haunted Buckout Road to debunk urban legends and myths. However, they come to realize that the old stories may be real. Directed by Matthew Currie Holmes, it stars Evan Ross, Dominique Provost-Chalkley, and Danny Glover.

MTRCB Rating: R-16

Stuber

UBER driver Stu picks up his policeman passenger who is on the lookout for a brutal killer. Stu is then thrust into an ordeal of unexpected events as he holds onto his life and five-star rating. Directed by Michael Dowse, it stars Dave Bautista, Kumail Nanjiani, and Mira Sorvino. The Atlantic’s David Sims writes, “For years, this kind of film was practically a monthly offering from major studios. Now, though, the small and low-stakes Stuber feels like a welcome departure from the mega-budgeted epics that crowd theaters every summer. That’s not to say it’s good, exactly, but it’s short (a breathtaking 93 minutes!), packed with salty one-liners, grounded by two lovable leads, and comfortingly predictable — the kind of routine project that at one time would have dominated Blockbuster shelves for months.”

MTRCB Rating: R-13

The Angry Birds Movie 2

THE flightless angry birds and scheming green pigs forge a truce on their feud and become allies for once as they save their endangered homes from outsiders. Directed by Thurop Van Orman, it features the voices of Jason Sudeikis, Josh Gad, and Bill Hader. www.rogerebert.com ‘s Matt Zoller Seitz writes, “This sequel is more shenanigans-based. The plot eventually leads to a combination heist movie/band of heroes on a military mission storyline, which is more conducive to kid-oriented slapstick and lets the project feel less ungainly and lighter on its feet (although there’s still a fair amount of sexual humor that might be considered inappropriate, were there a chance small children would get it).”

MTRCB Rating: PG

Angel Has Fallen

AFTER an assassination attempt on the U.S. president, Secret Service Agent Mike Banning is falsely accused and taken into custody. After escaping from capture, he evades his agency and outsmarts the FBI to find the real threat to the president. Directed by Ric Roman Waugh, it stars Gerard Butler, Morgan Freeman, and Jada Smith.

MTRCB Rating: PG

Just a Stranger

MAE is a woman in her mid-30s who is married to a wealthy businessman. She goes on a vacation to Lisbon, Portugal, and meets 19-year-old Jericho, a son of a Philippine ambassador. The two enter an affair and it continues when they both meet in the Philippines after Mae’s vacation. Directed by Jason Paul Laxamana, it stars Anne Curtis, Marco Gumabao, Isay Alvarez, Robert Seña, Edu Manzano, and Jas Rodriguez.

MTRCB Rating: R-16

What’s the best employee feedback mechanism?

We work for a medium-sized corporation. You have said that exit interviews are futile and reactive. If that’s the case, then what would you recommend us given the fact that there are so many communication programs that could give the best employee feedback? — White Rose.

A chubby fourth-grade schoolboy was experiencing his first summer at a rural camp. After two days, he sent his mother a brief text message to express his dissatisfaction with the organizer: “Dear Mom, please send me lots of food here. All we get here is breakfast, lunch, and dinner.”

When you’re searching and trying to put up the best employee communication program from many choices around us, sometimes, the process can leave you paralyzed by over-analysis. After all, it’s getting harder to choose from many options.

But you don’t have to copy from others without knowing their context and applicability to your particular situation. You need to be more discerning as you did when you read about my post that exit interviews are ineffective, futile, and reactive and one bad example of securing employee feedback.

Really, exit interviews cannot be relied upon by management as a feedback mechanism because many resigned employees would not want to rock the boat, if not burn the bridge. They will not tell you the real reason or reasons why they’re leaving the organization as they’re more interested to secure their clearance, certificate of employment and terminal pay at the soonest possible time.

Also, resigned employees would want to play it safe because they don’t want their past employer to badmouth them to their prospective bosses. Another clear reason against exit interviews is the likelihood that resigned employees may soon change their minds should their new employment elsewhere proved to be less desirable.

Sure, you can still conduct exit interviews, but be prepared to hear nothing but motherhood statements from resigned employees. If ever, you can only hear from a few disgruntled people who may spill the beans against a certain management policy or the style of their boss as compared to the majority opinion.

That brings us to your question — what’s the best employee communication feedback mechanism? In general, I can tell you only of two schemes:

One, the annual anonymous employee morale survey. Also known as “satisfaction” survey but with the same clear objective. Management would want to hear from the great majority of people who are required to give their honest opinion on many categories that include working conditions, line supervision, compensation package, career opportunities, and many more.

To be more specific about those categories, I am recommending here the Gallup Q12 Employee Engagement Questionnaire: Do you know what is expected of you at work? Do you have the materials and equipment to do your work right? At work, do you have the opportunity to do what you do best every day? In the last seven days, have you received recognition or praise for doing good work?

Does your supervisor, or someone at work, seem to care about you as a person? Is there someone at work who encourages your development? At work, do your opinions seem to count? Does the mission/purpose of your company make you feel your job is important? Are your associates committed to doing quality work? Do you have a best friend at work? In the last six months, has someone at work talked to you about your progress? In the last year, have you had opportunities to learn and grow?

To secure accurate and truthful opinions from respondents, it is indispensable that your management ensure the confidentiality of the result, by allowing anonymous answers, except for one’s department or unit. This allows top management to focus their attention on where the problem lies.

Last, the one-on-one, face-to-face “stay” interviews. This is the remedy to the reactive and futile “exit” interview. I’m using the term “stay” not necessarily to convince people about lifetime employment but for you to feel the pulse of individual employees as opposed to the morale survey where majority of employees are expected to participate.

There’s no such thing as a solution that fits all situations. People managers must carefully assess the individual aspirations of their workers that may be different from the majority. People differ in terms of their career goals, educational orientation, marital status and pet peeves.

In conducting “stay” interviews with employees within your department, you may have to consider some of the following generic conversation starters: What is your plan for the future? How can I make your job meaningful for you? How can I help you succeed with your career plans? How would you like the idea of being given autonomy in doing your job? How would you like to be treated fairly in this organization? What do you like best about my management style? What do you like the least?

You might hear many possible likes and dislikes, even if you think you’ve done your best for them under the circumstances and given the limitations of the organization. Some people have peculiar quirks about certain aspects of their work. Therefore, recognizing these likes and dislikes can go a long way toward making the job of proactively communicating with people easier to do.

ELBONOMICS: The best employee feedback is often left unsaid.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

How PSEi member stocks performed — August 22, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, August 22, 2019.

 

Manila’s competitiveness slips in 2019 global cities ranking

Manila’s competitiveness slips in 2019 global cities ranking

Asia economic losses from calamities estimated at $675B

A UNITED NATIONS (UN) agency estimated the annual economic losses in Asia and the Pacific from disasters at more than half a trillion dollars, and urged countries to invest in prevention and resiliency measures to manage the risk because disasters are getting worse.

In the Asia-Pacific Disaster Report 2019 launched Thursday, the UN Economic and Social Commission for Asia and the Pacific (ESCAP) reported that recent disasters in Asia and the Pacific have been stronger than usual, leaving countries unprepared for the impact. The disasters include earthquakes, tropical cyclones, floods, tsunamis, and drought.

“The annual economic loss for Asia and the Pacific is now $675 billion, or around 2.4% of the region’s GDP, of which $405 billion or 60% are drought-related agricultural losses, impacting the rural poor disproportionately,” UN ESCAP said in a statement Thursday.

The report said losses have been rising since there are more physical assets at risk, noting that disaster risks are outpacing economic growth in Asia and the Pacific. The increase in the number of disasters is attributed to climate change, to which 96% of people living in the region are exposed.

Risks are also becoming more “complex” than before, making it hard for countries in the region to determine what kind of preparation is needed.

The Philippines’ multi-hazard average annual loss (AAL) was estimated at $20 billion. The total proportion of the Philippine population living in high-risk areas is 75.8%.

ESCAP also noted that disasters worsen inequality and poverty in the region. The report also encouraged countries to invest in disaster resilience and enact the needed social policies in order to keep poverty from worsening due to disasters.

“With disaster risk, 119 million people are projected to be living in extreme poverty in these countries in 2030. However, investing in line with global averages in education, health and social protection will bring this number down, to 80 million, 69 million and 53 million, respectively,” the report said.

The Philippines needs to invest an additional $10 billion per year in order to get ahead of the disaster risk.

ESCAP said additional investments will be more beneficial for society if policy makers are capable of assessing disaster risks on individual sectors. UNESCAP added, “the benefits of increased investment can only be amplified when governments are more risk-informed in their decision-making. This requires a comprehensive portfolio of sectoral investments combined with interventions for climate change adaptation and disaster risk reduction.” — Gillian M. Cortez

Economic team sees exporting nations faring worse than PHL in recession

ECONOMIC managers said the Philippines will not be significantly affected by the rising possibility of global recession since the country is not export-driven.

“With the increasing prospect of recession in the global economy, this is a real threat but our protection is that the Philippine economy is more internally demand-driven rather than externaly-demand driven,” National Economic Development Authority (NEDA) Secretary Ernesto M. Pernia said at the 2020 budget briefing conducted by the Development Budget Coordination Committee (DBCC)

NEDA, which Mr. Pernia heads, is among the DBCC members along with the Department of Finance (DoF), and Department of Budget and Management (DBM), setting official macroeconomic targets and assumptions for the government.

Finance Undersecretary and chief economist Gil S. Beltran added that Overseas Filipino Workers (OFWs) are not expected to be affected by a global slowdown since they provide “essential services” such as health, education, and domestic services.

“That’s what the numbers say, na magkakaroon ng (that there will be a) recession. The good thing about the Philippine economy is that we are not export-led, we are domestic-led,” Mr. Beltran told reporters on the sidelines of the event.

Analysts are seeing signs the US is heading for a downturn after a brief inversion in the yield curve earlier this month, a classic recession signal. The last inverted yield curve came in June 2007 when the US sub-prime mortgage crisis was breaking.

An inversion takes place when short-term bond rates are higher than long-term rates, implying greater immediate risk. The typical bond rate structure assigns higher risk to longer terms, due to the increased uncertainty inherent in longer-term debt.

The two officials also said the Philipines will be the least affected in the Association of Southeast Asian Nations (ASEAN), the leading economies of which are more export-oriented.

“We do not depend very much on exports as do other ASEAN countries,” Mr. Pernia said.

“We are not a high-flying export economy, alam mo kung sino ang worst affected? (Do you want to know who will be the worst-affected?) Korea, Singapore, Hong Kong, Thailand, ‘yan ang mga affected (those will be affected), they will collapse,” Mr. Beltran said.

However, he added that the Philippines may accommodate a wider budget deficit of up to 5% of Gross Domestic Product if the threat of a global recession requires economic stimulus.

“A 3% (deficit) is good enough, we just need to do more. [But] we won’t be affected,” Mr. Beltran said, adding: “We had 5% (deficit) in the past; during a period of crisis, the economy allows 5%,” he said.

The DBCC set a target in its July meeting of a budget deficit of up to 3.2% of GDP between 2020 and 2022.

Meanwhile, they assured that the government is speeding up infrastructure spending to stimulate economic growth and act as a buffer against the impact of a global slowdown.

“If we just do… massive infrastructure spending, which we also encourage the private sector to increase capital formation, then I think we probably be relatively unscathed at least this year in terms of possible global economic recession,” Mr. Pernia said.

Data from DBM indicates that catch-up spending by the government is currently under way following the four-month delay in passing the 2019 budget.

The government has a recorded a budget utilization rate of 93% on notice of cash allocations (NCA), using P1.153 trillion out of the P1.244 trillion cash worth of cash allocated as of July. — Beatrice M. Laforga

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