By Melissa Luz T. Lopez, Senior Reporter
YIELDS ON term deposits floated by the Bangko Sentral ng Pilipinas (BSP) saw mixed movements this week, as banks crowded shorter tenors but asked for bigger returns for month-long placements.
Demand reached P124.499 billion for deposits on offer yesterday, well above the P100 billion on the auction block but slightly lower than the P128.839 billion bids received the previous week.
All tenors saw tenders settle above the central bank’s offerings, although the bias remained in favor of the one-week and two-week papers.
Banks wanted to place as much as P47.436 billion as seven-day deposits, higher than the P47.372 billion the previous auction and still higher than the P40 billion on the auction block. This drove rates lower to average 3.7494%, coming from the 3.7586% fetched the previous Wednesday.
On the other hand, the 14-day tenor remained as the instrument of choice among players as bids amounted to P54.352 billion, surpassing the P40-billion offer. This is lower than the P57.485-billion tenders received last week.
This pushed down the average yield to 3.9084% compared to the 3.922% logged a week ago.
Meanwhile, appetite for the 28-day term papers eased to P22.711 billion from P23.982 billion previously, but still logged higher than the P20 billion which the central bank wanted to sell. In turn, the average yield inched up higher to 3.9471% from 3.9416%, as players sought for returns ranging from 3.9-4%.
Since June 2016, the term deposit facility (TDF) has been the central bank’s main tool to arrest excess money supply in the financial system. The BSP holds the weekly auctions to bring market and interbank rates within its desired spread, which currently ranges from 3-4%.
The central bank has been offering P100 billion for its weekly auctions since June.
Market observers, including the International Monetary Fund, have said that the central bank’s use of the TDF has been successful in shoring up excess liquidity following the reduction in the reserve requirement ratio imposed on big banks.
In two moves, the BSP trimmed the reserve level to 18% from 20% previously and unleashed roughly P200 billion in each wave.
BSP Governor Nestor A. Espenilla, Jr. has said that he will cut the reserves to single-digit over the next five years.
The central bank will be offering the same volumes under all tenors of its term deposits next week: P40 billion apiece in the seven-day and 14-day terms and P20 billion in the 28-day deposits.
By Karl Angelo N. Vidal, Reporter
SECURITY BANK Corp. expects its loan growth to slow down this year due to high base effects after its rapid retail loan growth in 2017.
In a business matching event in Makati City, Security Bank said it projects slower loan growth this year following “stronger than expected” lending performance in 2017.
“We don’t give our targets, but I think the loan growth this year will be lower than last year,” Security Bank President and Chief Executive Officer Alfonso L. Salcedo, Jr. said on Wednesday.
“For one thing, our loan growth last year was very strong. It was at 28%.”
Mr. Salcedo said the lender’s loan growth last year was mainly supported by the corporate segment, which he considers as lumpy.
“When you look at the industry, a lot of the loan growth is driven at the top, at the conglomerate segment because those are the lumpy ones. Those have timing effects because if they don’t need it, they don’t.”
To temper slower growth in loans this year, the bank said it will be looking at the retail and middle market segments of its loan book as it is “more sustainable.”
“This year is a bit different, but we’re looking at the retail and middle markets because that’s more sustainable,” Mr. Salcedo said, adding that retail loans yield more margins compared with the corporate ones.
According to the bank, 17% of its loan portfolio goes to the retail segment and another 34% is from the middle market.
Amid expectations of slower total loan growth this year, Mr. Salcedo said its retail lending segment continues to expand.
“It’s growing very fast. The latest number that we have, it’s growing close to 50% year to date,” Mr. Salcedo said, comparing the figure with the same period in 2017.
Eduardo M. Olbes, executive vice-president at Security Bank, said its retail lending growth was led by its car loan business.
“In Security Bank’s case, [our car loan growth continues to grow] is because opened new channels to be able to serve our clients,” Mr. Olbes said.
“Our go-to market strategy changed. We have new channels which were not previously serving which is the dealer channel.”
Mr. Salcedo added that loans for small enterprises also supported the growth of its retail business. LTNCD
Meanwhile, Security Bank said it may offer the third and final tranche of its P20-billion long-term negotiable certificates of deposit (LTNCD) program within the year.
“We’ll probably have one more [tranche] before the end of the year, Mr. Salcedo said. “I think we have got [approximately] P6 billion to go.”
The bank was authorized by the central bank to raise up to P20 billion in peso-denominated notes. The first tranche was conducted last year, raising P8.6 billion in November. Another P5.8 billion was raised in May, above the initial P5 billion it intended to offer.
LTNCDs are similar to regular time deposits which offer higher interest rates. However these cannot be pre-terminated. Being “negotiable” means these can be sold at the secondary market prior to maturity date.
Security Bank’s net income stood at P2.35 billion in the first quarter, down 16.6% Shares in the bank gained 20 centavos or 0.10% to close at P203 apiece yesterday.
FACEBOOK, Inc.’s apps and websites are still blocked in China, but that’s not stopping the social media giant from trying to open a center in the country to support local start-ups.
Facebook set up a Chinese subsidiary, Facebook Technology (Hang Zhou) Ltd., earlier this month, according to a filing with the National Enterprise Credit Information Publicity System. The subsidiary, which was approved July 18, has registered capital of $30 million, according to the filing.
Asked for comment, a Facebook spokesman said the company is looking into setting up an “innovation hub” in Zhejiang, a province south of Shanghai that’s home to the prestigious Zhejiang University and has hosted the country’s annual summit of global tech leaders. Reuters earlier reported the existence of the filing.
“We have done this in several parts of the world — France, Brazil, India, Korea — and our efforts would be focused on training and workshops that help these developers and entrepreneurs to innovate and grow,” the spokesman said in a statement.
But in a sign of the difficulties in operating in the country, the registration appeared to be removed from the Chinese government website later in the day.
Facebook has long been keen to get back into China, which blocked access to the platform in 2009. The market represents the largest population of potential users the company still can’t reach. Local equivalents, like Tencent Holdings Ltd.’s WeChat, dominate the country’s Internet landscape, and in many ways the mobile app revolution has moved faster in China than elsewhere.
Facebook even went so far as to build a tool that could geographically censor information in the country, the New York Times reported in 2016. But right now all it can do is sell ads to Chinese businesses who want to advertise outside of the country.
The filing lists Damian Yeo, head of the company’s legal team in Asia Pacific as the chairman of the new unit. David Kling, Facebook’s deputy general counsel and corporate secretary, is a director. — Bloomberg
CORAVIN inventor Greg Lambrecht demonstrating his device wine preservation device with a attached Coravin Aerator.
LIKE EVERY wine enthusiast out there, I am fascinated by wine gadgets and accessories — from the Vinturi wine aerator, stemless crystal glasses, to handcrafted decanters — but none of these impresses me more than the Coravin wine preservation system.
I first came across Coravin on a trip to Hong Kong a few years back, but only saw its actual demonstration in Malaysia earlier this year. Coravin is a modern scientific wine preservation system that basically has the same application as the large and bulky Italian made Enomatic wine dispensing machine (and a few other similar brands), but packaged in a portable and cooler looking device. I was very fortunate to be given the chance to interview the inventor and founder, American Greg Lambrecht in Hong Kong. WHAT IS CORAVIN?
Coravin is a high-tech wine preservation device that uses a hollow needle (similar to an epidural needle) which is inserted through the cork, even with the foil capsule intact, to pour the wine out, while the bottle is simultaneously filled with pure argon gas to prevent oxidation. Once the needle is removed from the bottle, the cork reseals and the wine can be preserved as if it was never opened. Replacement argon gas capsules are sold separately when the device’s build-in argon gas is used up.
The Coravin name — as founder and Paul Rudd (Marvel’s Antman) look-alike Greg Lambrecht enlightened me — is a portmanteau of two Latin words: “cor” which means “heart,” and “vin” which means “wine.” Greg sees Coravin as the heart of wine, because the heart of enjoying wine is to have variety. The Coravin device allows wine drinkers to drink portions of the wine without committing to finishing the whole bottle. Therefore, at any given time, with Coravin a wine consumer can open a few bottles of different wines and drink only a glass or half a glass of one bottle and switch to another bottle without worrying about the wines losing their luster when saved for another day of drinking. HOW WAS CORAVIN INVENTED?
“The idea for this invention got hatched when my wife decided to give up drinking wine, and I love wines but now I have no one to share a bottle with at home. I feel that this is an unmet need that many wine drinkers are faced with. It makes no sense for a person to finish a whole bottle when all he or she wants is to have a glass or two,” Greg recalled.
And very fortunate for all of us wine lovers, Greg Lambrecht had the technical background to make this happen. Greg worked in the medical field all his professional career. Early in his career, he was working on a chemotherapy delivery system that was implanted underneath the skin using needles. The needle was used to deliver chemotherapy repeatedly to an affected cancer area over a long period of time. This is basically how Coravin works, Greg explained. “You look at our needle, it is closed at the end, holes cut on the side, so it doesn’t remove material while it pierces and dilates the cork. And because corks are elastic, it closes again. The elasticity of the cork remains the same, sealing against the glass bottle after use.”
It did take around 11 years before the Coravin idea came to fruition. Greg admitted working on this idea in his basement at night, while his daytime was spent on his medical business. He tried several different gasses and needles, and was able to make his first prototype as early as 2003. It was in 2013 that Coravin was officially launched in the US market, and the company has grown rapidly since, with Coravin penetrating Europe, and most recently the Asia Pacific region just two years ago. Greg still runs both his medical company and Coravin.
MORE VERSATILE USAGE
Personally, Coravin seems like a lot more than a wine preservation system. Coravin replaces the foil cutter, the corkscrew, the pourer, and any wine preservation system that is available, whether it be the wine pump, the inert gas can, or even the big dispensing machines. It therefore makes a lot of sense for Coravin to be used in on-premise establishments, wherein now a very stiffly priced premium wine can be offered by the glass, without worry that the wine will get oxidized.
This is exactly the same purpose of the Enomatic machines, but with more flexibility. As mentioned in a previous column on wine dispensing and presevation machines, I have been saying all along that the nature of physically replacing a finished bottle in a wine dispensing machine is too much of a hassle that is, sadly, not rectifiable. With the Coravin system, you not only save space as the gadget can be removed from the bottle after each use, but, if needed, the bottle can be brought straight to the table for pouring in the customer’s full view. Aesthetically the Enomatic machine looks more stylish and can complement any nice interior, but functionally, the Coravin can do the same job at better efficiency, not to mention, at much better price. I saw Coravin being used in the Okada Casino Hotel, and more hotels and restaurants in Metro Manila would surely follow soon. TWO SIGNIFICANT ADDITIONS
When I met Greg I had two concerns about Coravin, both of which I was surprised to find out were already addressed by his company.
The first one involved aeration. As we all know, many of the full-bodied, high-tannin wines need time to breathe before being enjoyed, thus the use of decanters or even the Vinturi aerator. Immediately Greg proudly showed me the Coravin Aerator, an accessory that can be attached to a Coravin device that looks like a faucet shower-head adapter. Greg demonstrated the aerator, which he called his coolest invention to date, and it was like a beautiful sprinkler in action.
“Aeration is a factor of time and surface area, and by increasing surface area, you accelerate aeration exponentially. What we did was we created small holes spaced around the diameter and broke the single stream into 24 streams. We can still alter the diameter, the droplet size, the number of streams if needed,” he added.
My second concern was Coravin’s usefulness with screw-capped wines since this closure is not made from cork, and, voila, Coravin had already created the Coravin Screw Cap, which is made with self-sealing silicone and can be used to replace any screw caps in wine bottles. The Coravin Screw Cap can be conveniently used with any Coravin devices.
With such top-notch R&D always searching for user benefits, and Greg’s indefatigable energy and vision, Coravin will keep on improving. Their newest version, the Coravin Model Eleven, is their best model to date. This comes after the 2nd generation Coravin Model Two. The Coravin Model Eleven has a sleeker look and comes with a light ring that will turn green when the wine has been penetrated by the needle and is ready to pour. And by gently tipping the bottle, the wine will automatically pour. Coravin Model Eleven also provides two pouring options for a full glass or a smaller sampling portion. The Coravin Model Eleven retails just slightly below $1,000 per unit. THE LAST HURDLE
I was planning to bring a Coravin back home from Hong Kong, where the Coravin system’s manufacturer is located (the needles come from the US, and argon gas comes from Austria), as presumably it would be cheaper — but I was told that because Coravin contains gas, it was prohibited from being hand-carried or checked-in when traveling. I heard that even in the US where Coravin is from, you are not allowed to fly with the device unless the argon capsule is removed. According to the Coravin founder, the company is still working with the airlines, the countries, and even the TSA to see how this can be addressed.
Argon gas is actually non-flammable, non-toxic, and even odorless, but, as Greg pointed out, justifiably, there is no way for airport authorities to really know what is inside the Coravin capsule that says argon gas unless they puncture it or have some gas detector machine. So this one is still a work in process.
While I am one of the strongest advocates of wine being a social drink, meant for sharing, and therefore a bottle should be drunk with friends, there are also moments that I want to be a bit selfish. Sometimes, I just want to savor my Chateau Haut-Brion 1990 half a glass at a time, till it vanishes into oblivion. The author has been a member of the Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux or FIJEV since 2010. For comments, inquiries, wine event coverage, and other wine-related concerns, e-mail the author at protegeinc@yahoo.com. He is also on Twitter at twitter.com/sherwinlao.
MEGAWORLD Corp. is unveiling a second residential tower worth P7 billion in sales within its Taguig township, after quickly selling out the first phase of the Park McKinley West project this month.
In a statement issued Wednesday, the listed property developer said Park McKinley West’s second tower will offer 478 rooms across 25 floors.
Units range in size from 48.5 square meters (sq.m.) for one-bedroom, up to 110 sq.m. for two-bedroom, up to 212 sq.m. for three-bedroom, up to 229 sq.m. for four-bedroom, and up to 336 sq.m. for five-bedroom penthouse units.
Amenities include a lap pool and kiddie pool with a pool deck and lounge, fitness center, function rooms, yoga room and outdoor yoga deck, outdoor sitting areas, water features, children’s playground, game room and sky garden.
The property unit of tycoon Andrew L. Tan expects to complete the project by 2023.
The launch of the second tower follows the strong sales of Park McKinley West’s first residential building worth P6.5 billion, which has already been sold out two months after its launch in May.
Megaworld noted that rising prices for property units in the 34.5-hectare McKinley West township have not dampened demand, as investors are looking at the development’s prime location.
McKinley West is located in the southern part of Fort Bonifacio in Taguig, beside Forbes Park and the Manila Polo Club.
“At present, unit prices of Park McKinley West already rose 15% to P250,000 per square meter because of the huge demand for residential properties in McKinley West. We somehow expected this considering the remarkable take-up of lots in McKinley West Village, and the brisk sales of units in St. Moritz and The Albany. McKinley West is truly on a roll,” Megaworld Senior Vice President for Sales and Marketing Noli D. Hernandez said in a statement.
Megaworld now has four residential projects in the township, with the first being the McKinley West Village launched in 2010. The company noted that prices of lots in the upscale residential village have already tripled to around P200,000 per sq.m.
Its other residential offerings in the township are the St. Moritz Private Estate and The Albany. Megaworld said prices of units in both properties have already increased by 40% since their respective launches.
Megaworld’s net income attributable to equity holders of the parent rose by 11% to P3.2 billion in the first quarter of 2018, following a 10% increase in revenues to P13.1 billion for the period.
Shares in Megaworld jumped 2.35% or 11 centavos to close at P4.80 each at the stock exchange on Wednesday. — Arra B. Francia
Here’s good news for makeup enthusiasts and online shoppers: Giltbox, the Philippines’ first and leading lifestyle subscription box service, is re-launching their online store!
But wait a minute, if you haven’t heard what Giltbox is, allow us to introduce it to you!
It’s a 360-degree lifestyle discovery platform — when one subscribes to their sampling service, they will receive a monthly delivery of the best beauty, grooming, and lifestyle products from prestige brands around the world. Yes, you read that right, around the world!
You probably never heard of “discovery subscription” — well, Giltbox is essentially like that. With Giltbox, you will have the chance to discover beauty and lifestyle products that are personalized just for you! By filling out your very own “beauty profile” (for women) and “grooming profile” (for men) — the Giltbox team will customize products according to your preference and data. Isn’t that amazing? You know it is! 😉
In the Giltbox Shop, customers can buy find full-size versions of some of the products sampled as well as other editor-approved products from a vast list of brands. Shop from their list of 100+ brands and 1000+ products!
The Giltbox Shop is actually very user-friendly. You can easily find what you’re looking for in the “Shop”tab such as makeup, skin care, bath & body, hair, fragrance, and lifestyle.
You can also check out the contents of the previous boxes under the “Featured” tab. If you want to know the products that are currently on sale, don’t worry! Just click on the “Sale” button under the “Featured” tab.
Since Giltbox also has an online magazine designed to educate and inspire customers, from how-to videos, to beauty and style articles, to influencer collaborations — one can really appreciate and try out the products based from their pegs.
Giltbox’s innovative approach allows brands and consumers to connect in a unique, intimate, and fun way!
What are you waiting for? Go check out their store here and see what awesome products awaits you:https://www.giltbox.ph/shop.
THE GOVERNMENT will ask the Supreme Court to reconsider its ruling expanding local government units’ (LGUs) share of the national government’s revenue, saying that the 2019 budget priorities have been set.
Budget Secretary Benjamin E. Diokno said that the high court’s decision was “too late to insert” after President Rodrigo R. Duterte submitted to Congress on Monday the proposed budget approved by the Cabinet.
“The DBM (Department of Budget and Management) in coordination with the Office of the Solicitor General will file a motion for reconsideration within 15 days from the receipt of the decision,” he said.
“The President’s budget reflects the administration’s budget priorities. So we feel that undue application of the ruling to the incoming fiscal year 2019 budget might distort the funding earmarked to priority programs and projects identified by the national government,” Mr. Diokno said.
He said that the DBM has yet to formally receive a copy of the Supreme Court resolution, which was released to the media on Monday.
Mr. Diokno said the DBM has insufficient time to reconfigure the 2019 budget, given the short 30-day window for the budget submission beginning with the resumption of the Congressional session on July 23.
The court in its final resolution ordered the “automatic release without further action” of LGUs’ “just share” of all national government revenue, including taxes collected by the Bureau of Customs. It also ruled that the national government should implement the ruling prospectively.
Mr. Diokno said that complying with the ruling would mean an additional P160 billion for LGUs in the form of Internal Revenue Allotments (IRAs) on top of about P600 billion initially budgeted for 2019.
Mr. Diokno has said that had the ruling been interpreted to be retroactive from 1992, it would cost the government at least P1.2 trillion.
Republic Act No. 7160, or the Local Government Code of 1991, provides for IRAs amounting to 40% of “national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year.”
Mr. Diokno said that the government will not implement the order until such time that the SC has responded to the motion for reconsideration.
“Nevertheless, the DBM will faithfully comply with the SC decision once it has become final and executory,” he said.
Mr. Diokno said that the government will devolve some functions to LGUs, especially conditional cash transfers (CCTs), farm-to-market roads, and local health care programs, as well as the corresponding budget for these functions, doing away with the need to spend more.
“There are many items there that were supposed to be performed by LGUs. CCT — that is supposed to be local but we are providing for it. So there’s a possibility that we might realign. We give that expenditure responsibility to them because the law says that’s theirs. Somewhere along the way, they got taken over by the national government,” he said.
“There’s a way of reallocating resources so LGUs will take over what they’re supposed to do. There are many things that they are not doing right now. And we’ll give it to them,” he added.
Sought for comment, the office of lead petitioner Hermilando I. Mandanas, a former Batangas governor and former representative of the province’s 2nd district and now Chairman of the Luzon Regional Development Committee, replied in a mobile phone message: “Gov. Mandanas would like to thank the SC for their wise decision.”
When asked to comment on the implications of the devolution for federalism, Mr. Diokno said: ”Let’s not complicate this with federalism. If you bring up federalism, then we will end up discussing this forever. So let’s set aside federalism. That’s a long way to go.” He added that he is still studying the draft constitution.
Finance Secretary Carlos G. Dominguez III and Socioeconomic Planning Secretary Ernesto M. Pernia have raised possible concerns about the ability of LGUs to deliver projects. — Elijah Joseph C. Tubayan
THE PHILIPPINES is less likely to be affected by the trade war between the US and China compared with other more open economies in the region, but the dispute could still dampen growth prospects next year, UBS AG said.
In a media conference call, UBS economist Alice Fulwood said the Philippine economy is relatively resilient to the looming tariff war between the two major economies, but the disruption caused to trade could still weigh down growth for 2019.
UBS maintained its growth forecast for the Philippines at 6.8% this year, but slashed its 2019 estimate to 6.4% from 6.6% previously. This is significantly lower than the government’s 7-8% growth target.
“We now believe an escalation of US-China trade tensions with a meaningful fallout on growth is more likely than not,” UBS also said in a research note published last week.
“The more open economies of Singapore, Thailand and Malaysia see a more significant impact than the more closed economies of Philippines and Indonesia. Vietnam looks best placed to benefit from export market share gains.”
US President Donald J. Trump imposed tariffs on billions of dollars worth of goods brought in from China, particularly aluminum and steel items. China has retaliated with a 25% tariff on US soybeans.
Ms. Fulwood said the reduced forecast for the Philippines is the “direct result” of the potential impact of the trade war, and is less severe compared to downgrades for other Southeast Asian economies.
Singapore, which has a bigger exposure to the US and China, is expected to grow by 2.2% next year, down from the original 3.2% forecast. Malaysia’s growth is also projected at 4.2% from 5.1% previously.
UBS said manufacturers of cars, electronics and electric machinery may be affected by the US-China trade war, although the Philippines is “less exposed” to the global supply chain for these sectors.
Philippine inflation is estimated to average 4.7% this year, easing to 3.8% by 2019. These compare with a 2-4% target band of the Bangko Sentral ng Pilipinas (BSP).
UBS expects two more rate hikes from the BSP during its August and September policy meetings. If the forecast pans out, this will bring rates to 3.5-4.5% by year’s end following back-to-back increases in May and June.
“Higher interest rates can put downward pressure on the economy, but it will be resilient. We do not expect growth to slow too much,” Ms. Fulwood said.
The impact of the trade tensions may also be felt through the exchange rate. Ms. Fulwood said they expect tariffs to be met with a “risk-off” attitude against Asian currencies and lead to a stronger dollar.
UBS expects the peso to breach the P54 to the dollar level this year, and possibly weakening further to P56 next year. — Melissa Luz T. Lopez
CROP damage caused by two storms and a tropical depression has topped P1 billion, according to the Department of Agriculture.
According to data from the DA’s disaster operations center, as of Wednesday, damage to agriculture caused by Tropical Storm Henry, Severe Tropical Storm Inday and Tropical Depression Josie was estimated at P 1.12 billion.
Rice, corn, high-value crops, fisheries and livestock were among those affected, while the main areas affected by the storms were all of Region III as well as the province of Oriental Mindoro and parts of Northern Luzon, Negros Island and Panay, the DA said in a social media post.
Damage to rice made up 83% or P925.99 million of the total, amounting to 12,111 metric tons (MT). Meanwhile, palay in washed-out seedbeds was estimated at 5,137 bags.
The damaged area planted to rice was 30,274 hectares in the provinces of Pangasinan, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Batangas, Rizal, Laguna, Occidental Mindoro, Negros Occidental and Aklan.
Some 37,927 rice farmers were affected, with those from Central Luzon recording losses worth P569.83 million, with Tarlac accounting for P362.46 million.
Damage to corn was estimated at 93 MT, valued at P1.47 million. The damaged cornfields were largely found in Pangasinan, Nueva Ecija and Pampanga.
Damage to high-value crops was estimated at P18.66 million, or 594 MT in vegetables across 116 hectares.
Livestock damage was P700,000,incurred in Pangasinan and consisting of 13 head of cattle and one carabao.
Fisheries damage was mainly in the form of fish and fishing equipment, accounting for P172.46 million of the total and spanning various regions of Luzon.
“The Regional Field Offices of the Department are now conducting field validation to determine the extent of the damage and losses brought by the three weather disturbances, as well as the needs of the affected farmers and fisherfolk,” the operations center said. — Janina C. Lim
THE WORLD Bank is recommending an expansion in the coverage of the government’s cash transfers, known as the Pantawid Pamilyang Pilipino Program, due to their effectivity in reducing poverty.
“The Bank considers that there are enough arguments to expand coverage of Pantawid to cover additional families in 2019, taking into account the large number of poor families with children that have not yet been covered (about 2 million),” the bank said in an implementation and status report dated July 17.
The World Bank is helping fund the payouts to CCT beneficiaries from 2016 to 2019 under the Philippines Social Welfare Development and Reform Project.
The bank provided $450 million worth of financing for the government, which covers 7% of the CCT payout.
“Considering the ambitious national goal of reducing poverty from 21% to 14% in 2022, Pantawid has already demonstrated important poverty reduction impacts,” it noted.
“The Bank continues to note with concern the diminishing number of children covered by the program over the years, especially those who are below the age of five and at high risk of malnutrition. This highlights the unrealized potential for Pantawid to play a leading role in addressing the Philippines undernutrition crisis,” the bank said.
The World Bank noted that a third of Filipino children under five are stunted, indicating undernutrition.
“Following the example of Peru, which cut its stunting rate in half in less than a decade, the Bank team has recommended that DSWD establish an interagency committee to enhance the impact of Pantawid on nutrition,” it said, referring to the Department of Social Welfare and Development.
However, it also flagged some delayed payouts due to logistical issues with the Land Bank of the Philippines, which it noted as a “critical aspect that has not been solved yet.”
“Many beneficiaries and DSWD local personnel express frustration over payouts being canceled at the last minute, ATMs without sufficient funds to disburse money to beneficiaries, and perennial delays in issuing and replacing cash cards,” the bank said.
“The Bank has recommended exploring additional/alternative payment providers to achieve more efficiency in the download of grants to the beneficiaries and, in the long-term, achieve 100% use of cash cards or point of sale terminals,” he added.
“DSWD should prioritize completing Listahanan 2015 with the missing Pantawid families that were not assessed,” it added, referring to the database of targeted beneficiary households. “For the Listahanan to stay relevant, the Bank has recommended DSWD to consider the need for a more dynamic registry, which is reflected by the requirements of its biggest users.”
It also noted that the national ID system will help plug leakages to the conditional cash transfer program.
It said the progress made towards reaching the project’s objectives as well as the implementation progress are “moderately satisfactory.” — Elijah Joseph C. Tubayan
