Regional snapshot: Job quality leaves a lot to be desired
LABOR SECRETARY Silvestre H. Bello III has urged regions deliberating on wage adjustments to fast-track this process by the “end of June” until July 15. Read the full story.
How PSEi member stocks performed — June 22, 2018
Here’s a quick glance at how PSEi stocks fared on Friday, June 22, 2018.
DICT backs assigning frequency to ‘third player,’ not auction
THE Department of Information and Communications Technology (DICT) is pushing for awarding of frequencies to the telecommunications industry’s third entrant to reduce its financial burden, the acting head of the department said.
DICT Acting Secretary Eliseo M. Rio, Jr. said that the Department of Finance (DoF), a member of the oversight committee for the selection process of the “third player,” wanted to have an auction for frequency, which the DICT opposed.
“The DoF wants to auction the frequencies, and the third player will be the highest bidder. We think this is anti-competitive because the incumbent telcos never bought their frequencies from the government,” Mr. Rio said in a text message. “It will put a big burden on a new player by (forcing it to) put up a huge amount up front that has nothing to do with putting up an infrastructure and improving telecommunications services.”
Mr. Rio said that an auction can be done for new frequency like those that for use in fifth-generation (5G) services, but not for those that were awarded without payment to the government.
“Auction can be done for all telcos with new frequencies like the coming 5G, but not for a new player that has to compete with incumbent telcos that never bought frequency from the government. It was awarded to them for free,” he said.
The oversight committee met on June 15, with no final terms of reference (ToR) for third-player selection approved after the meeting. It was reported that member agencies of the committee rejected the ToR presented by the National Telecommunications Commission (NTC), asking it to assign more weight to the initial financial outlay.
Mr. Rio told reporters last week that the NTC can finish the new ToR in two weeks. He also last week denied that the selection process is completed, but expressed disappointment regarding the new delay.
Mr. Rio has said that the awarding of frequency, as well as future reallocation of spectrum, will be attractive for those considering investing in the third player.
The last time the NTC assigned frequency was through a “beauty contest” and not through a bidding process. In a beauty contest, selectors judge an offer by the attractiveness of the rollout terms offered, rather than the size of the bid.
Around 300 megahertz (MHz) of frequency is assignable to a third player. The DICT had said this is sufficient for a third player to compete with incumbents PLDT, Inc. and Globe Telecom, Inc.
According to data from the NTC, 30.32% of all available radio frequency is allocated to PLDT while Globe holds around 24.9%. Some 39.35% is unassigned or under litigation, with about 5.41% remaining.
The third player will be required to spend massively on infrastructure to compete with the two incumbents. DoF Secretary Carlos G. Dominguez III has said in a statement that the third player may need at least P200 billion to compete.
Current requirements include paid-in capital of at least P10 billion; experience in providing, delivering, and operating of telecommunications services over the last five years; a congressional franchise not related to either PLDT or Globe; and no uncontested liabilities with the NTC as of Jan. 31, 2018.
Mr. Rio said that the department is looking at awarding the contract based on the highest committed level of service (HCLOS), and points given to a financial rollout during the first five years of operation. The third player may also be obliged to submit a performance bond.
The latest failure to release the ToR puts pressure on the government timetable of selecting the third player within the year.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo
Japan may lend $346M for MRT-3
JAPAN is considering a 38.101 billion-yen (about $346 million) official development assistance (ODA) loan for the rehabilitation of Metro Rail Transit (MRT)-3, and an additional 4.37 billion yen for the ongoing construction of the New Bohol Airport.
The Department of Finance (DoF) said in a statement over the weekend that Japan has expressed its intention to provide the new loan packages during the fifth meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation on June 20 in Tokyo.
“Finance Secretary Carlos G. Dominguez III said that during the 5th meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation, Japanese officials expressed their government’s intention to provide indicative official development assistance (ODA) loan financing of about 38.1 billion yen for the MRT Line 3 Rehabilitation Project and an indicative supplemental loan of some 4.37 billion yen for the second phase of the New Bohol Airport Construction and Sustainable Environmental Protection Project ‘subject to the necessary Philippine and Japanese Government approval processes,’” the DoF statement read.
According to the Ministry of Foreign Affairs of Japan, about twice as many trains in the 17-kilometer railway should be operational by 2022 after the rehabilitation period.
The Department of Transportation (DoTr) said the Philippine and Japanese governments started negotiations and feasibility studies for the MRT rehabilitation in January, after both parties exchanged notes on the ODA terms.
Meanwhile the new ODA loan for Phase 2 of the New Bohol Airport — which is expected to be completed this month — will meanwhile cover the increase of construction costs due to “the subsequent large currency exchange rate fluctuations and other factors.”
This will supplement the 10.7 billion-yen loan Japan provided in 2013.
Both loans will have an interest cost of 0.1% per annum, payable in 28 years with a 12-year grace period, and will require the participation of Japanese contractors.
Both countries also firmed up the proposed pipeline of infrastructure projects to be built with Japanese assistance.
These include the: Malolos-Clark Philippine National Railways (PNR) North 2 Project; the Tutuban-Laguna PNR South Commuter Line; the Pasig-Marikina River Channel Improvement Project; and the Road Network Development Project in Conflict-Affected Areas in Mindanao.
“We are targeting to sign the Exchange of Notes for both projects in November 2018,” Mr. Dominguez said. “We will also exert efforts to achieve the challenging goal of making the North rail section partially operational by 2022.”
“Both sides will continue to have consultations at the technical working level to accelerate implementation and address challenges for the railway projects,” he added.
Both parties also reported the progress of ongoing projects such as the land acquisition and relocation of utilities for Metro Manila Subway Phase 1.
The Philippines and Japan also agreed to explore further cooperation in urban development projects in Cebu and Davao, particularly in the areas of information and communications technology, energy, agriculture, environment, public safety, and disaster prevention.
Both countries signed the Letter of Intent for Technical Cooperation between the Department of Energy (DoE) and the Japan Ministry of Economy, Trade, and Industry on the Action Plan on Electric Power, which aims to help resolve issues plaguing the Philippine power sector, such as the need to improve generation efficiency and electrification rates.
They also signed the amended joint venture agreement between the Bases Conversion and Development Authority and the Surbana Jurong Group, which “restates their commitment” to develop New Clark City.
According to the DoF, there are about 12 Japanese ODA projects “already delivered” since the new administration took over.
Mr. Dominguez and Socioeconomic Planning Secretary Ernesto M. Pernia led the Philippine delegation, while led by Chief Cabinet Secretary Yoshihide Suga and Shigeru Kiyama, the special advisor to the Cabinet, represented Japan.
“This is now our fifth meeting since March 2017 and it is evident that our frequent meetings are beginning to bear positive results. Indeed, our commitment and efforts to fast-track loan processing and project implementation are gaining headway,” Mr. Dominguez told the Japanese delegation.
“As a result of these high-level meetings, our various agencies have been coordinating regularly to implement our agreed and joint actions to facilitate and hasten project implementation,” he added.
Mr. Suga said: “This joint committee has been (convening) for the important plan in developing multi-layer bilateral cooperation since we discussed cooperation in various areas such as traffic and transport infrastructure problems, the Metro Manila Subway project, peace and development in Mindanao, safety and counter-terrorism measures and information and technology.” — Elijah Joseph C. Tubayan
Transportation dep’t sees Cagayan de Oro port terminal opening in December
THE PASSENGER terminal building at the Cagayan de Oro port is expected for completion on Dec. 15, the Department of Transportation (DoTr) said.
In a statement on Sunday, DoTr said the construction of the terminal, which is the biggest in the country is now in full swing.
“This modern two-storey terminal building houses passenger port facilities which include check-in areas equipped with x-ray scanning machines, walk-through metal detectors, restrooms, charging stations, pay parking, ticketing offices, and field offices for Port and Tourist police,” it added.
When the terminal opens, DoTr said it expects to be used by 3,000 passengers every day.
In June 2016, the Philippine Ports Authority (PPA) issued the Notice to Proceed for the construction of the terminal. According to the PPA website, the construction company in charge is Jejor’s Construction Corp.
PPA posted a decline in net profit for the first quarter due to dredging costs. In a statement in May, it said net profit fell 4% year on year to P2.259 billion.
“Dredging as well as repair and maintenance costs comprise almost our entire expenses for the period, all aimed at making our ports efficient and more responsive to the demands of the times,” PPA General Manager Jay Daniel R. Santiago said in the statement.
Mr. Santiago said the PPA hopes to hit its net profit target of P16.18 billion by year’s end with the completion of certain infrastructure projects, including the Cagayan de Oro terminal.
“Once completed, these projects will definitely boost our revenue and eventually our income all anchored on faster turnaround of vessels and cargo in our ports,” Mr. Santiago was quoted as saying. — Denise A. Valdez
DICT estimates outlay for national broadband at under P20 billion
THE GOVERNMENT’S plan to install a national broadband network is on track to be rolled out in 2019 with the expected outlay now “roughly less than P20 billion” due to access to the backbone of the power grid.
Now that we have National Grid Corp. of the Philippines (NGCP) and National Transmission Corp. (TransCo), that’s a big chunk removed from the budget. The funding needed is probably roughly less than P20 billion now,” acting secretary of the Department of Information and Communications Technology (DICT) Eliseo M. Rio, Jr. told reporters on Tuesday.
He said since TransCo and privately owned NGCP signed an agreement with the department, the DICT is now concentrating on the so-called “middle mile” services to be provided by telcos, and possibly the incoming third telco player. This is opposed to “the last mile,” which is the final linkup between the network and end users.
“They will be the one to link the backbone to the point of presence in the provinces. And from the point of presence from each province and municipality, that’s where the small players will get their last mile,” Mr. Rio said.
He added that the bidding is ongoing, conducted by the Philippine International Trading Corp. (PITC), with two bids having arrived for nationwide services.
“If I’m not mistaken, we’re bidding out about P1.7 billion. So it’s about 8,000 to 9,000 access points nationwide,” Mr. Rio said.
Mr. Rio added that the focus this year is the feasibility study for the project. The Japan International Cooperation Agency (JICA) is in charge of preparing a report outlining the development phases of the plan.
By 2019, the DICT expects to receive the budget for the implementation of the national broadband plan, subject to the Congressional appropriations process.
The national broadband network is the government’s program to bring free and reliable Internet to areas not covered by private companies. It was stalled last year because of a disagreement between NGCP and TransCo. — Denise A. Valdez
South Korea’s Daegu City proposes water, sewage system upgrades to MWSS
THE Metropolitan Waterworks and Sewerage System (MWSS) said it received a proposal from the water agency of South Korea’s third-largest city, Daegu, for a technology and upgrade cooperation project.
“This is a welcome development for the Philippine water supply industry, particularly MWSS, following close bilateral relations forged during the recent visit of President Rodrigo R. Duterte to Korea early this month,” said MWSS Administrator Reynaldo V. Velasco in a statement.
MWSS said the Daegu project proposal covers government-to-government cooperation for advanced water technology applications in estimating demand; improvement of water purification and sewage treatment operations; upgrades to the sewage discharge system; and the installation of a water purification system.
Mr. Velasco said the proposal was conveyed by a delegation from Daegu Metropolitan City led by its Deputy Mayor for Economic Affairs Kim Yon Chang and other officials.
MWSS said the cooperation project is expected to help the agency address issues relating to wastewater treatment and improving water quality.
Aside from the application of water and sewage treatment technology, customized new methods for energy enhancement of the water and wastewater treatment process will be applied, it said.
Once approved, the proposal will provide for diagnosis and maintenance of the pipe network to prevent leakage and the introduction of contaminants. Advanced sewage management and treatment techniques will also be used.
The proposal also calls for the installation of water purification systems, which could resolve water shortages in areas without water supply. Small-scale water purification systems suited for residential supply will also be set up, including a water intake network. — Victor V. Saulon
CA orders release of renewable energy portfolio standards
THE Court of Appeals (CA) has directed the Department of Energy (DoE) to release “without delay” its regulations on the production of renewable energy after partly granting a petition seeking to compel the government to increase air and water pollution monitoring efforts and regulating coal-fired power plants.
According to Associate Justice Samuel H. Gaerlan of the CA’s Eighth Division, the release of the DoE’s Renewable Portfolio Standards (RPS) for off-grid areas was “long overdue” as the rules should have been promulgated within six months from the effectivity of its Implementing Rules and Regulations (IRR).
RA 9513, or the Renewable Energy Law, was approved on May 25, 2009 and “took effect 15 days after its publication in at least two newspapers of general circulation.”
The CA also directed the DOE to release the details of its Green Energy Option Program (GEOP).
“It must be noted that the IRR of RA No. 9513 provided for a specific period within which the DoE shall promulgate the RPS Rules and the Green Energy Option Rules, i.e., within six months from the effectivity of said IRR,” Mr. Gaerlan stated in his 45-page decision dated June 4.
The CA directed the department to submit a report on the release of the items covered by the ruling 10 days from the expiration of the deadline.
The RPS seeks to help promote the growth and adoption of renewable energy by requiring stakeholders to generate a minimum percentage of their output through renewable energy sources, with On-Grid referring to connected electrical systems — such as the power grids that supply most of the energy in the Philippines — and Off-Grid referring to independent systems mostly found in remote areas, according to RA 9513.
GEOP, meanwhile, provides power consumers the option to choose renewable energy as their sources of energy.
The Philippine Movement for Climate Justice, Inc., Environmental Legal Assistance Center, Inc., and Philippine Earth Justice Center Inc., as well as the multi-sectoral coalition SANLAKA, Inc. filed the petition before the Supreme Court on June 30, 2017 before it was transferred to the CA on Sept. 27, 2017.
Respondents for the case were Environment and Natural Resources Secretary Roy A. Cimatu and Energy Secretary Alfonso G. Cusi.
The CA noted that the petition “is directed against the alleged unlawful neglect by the DENR (Department of Environment and Natural Resources) and the DoE to perform their respective duties under Republic Act (RA) No. 8749 (Clean Air Act), RA No. 9275 (Clean Water Act), and RA No. 9513 particularly as regards the regulation of coal-fired power plant operations.”
Specifically, the petitioners claim that DoE neglected its duty “to reduce fossil dependence” and “to achieve energy self-reliance” as mandated in Section 2 of the DoE charter and Section 6 of RA 9513, respectively.
Meanwhile, the petitioners said the DENR failed to review and update regulations on air and water pollution and did not take action against coal-fired power plants operating without monitoring systems.
The CA ruled “there was no concrete proof that the DENR failed or unlawfully neglected to conduct any review” they were mandated to do, which includes the annual review of the list of hazardous pollutants and their corresponding ambient guideline values and/or standards, the review every two years of emission standards for stationary sources of air pollution, and the review and revision every five years or earlier of effluent standards.
The court also pointed out: “[N]o other evidence was adduced to prove the purported violations of existing coal-fired power plants in the country or the DENR’s refusal to institute proceedings against them,” adding that the number of firms being monitored by the department grew from 6,743 in 2010 to 10,307 in 2014. — Dane Angelo M. Enerio
The science of IFRS 9 and the art of Basel: Use of parametric thinking in provisioning
(Second of three parts)
IFRS 9 is an International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standards Board on July 24, 2014. It addresses the accounting for financial instruments and features three main topics: classification and measurement of financial instruments; impairment of financial assets; and hedge accounting. It became effective on Jan. 1, 2018 and replaced International Accounting Standards (IAS) 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. In this article, IFRS 9 is referred to as a “science” because of its systematically organized body of information and measurements on specific topics.
Basel III (or the Third Basel Accord or Basel Standards) is a global, voluntary regulatory capital and liquidity framework agreed upon by the members of the Basel Committee on Banking Supervision (BCBS) in 2010–11. It was scheduled to be introduced from 2013 until 2015; however, the implementation has been extended to March 31, 2019. Another round of changes was agreed upon in 2016 and 2017 (informally referred to as Basel IV) and the BCBS is proposing a nine-year implementation timetable, with a “phase-in” period to commence in 2022 and full implementation to be expected by 2027.
Basel III was developed in response to the deficiencies in financial regulation that came to light after the financial crisis of 2007–08. Basel III is intended to strengthen banks’ capital requirements, liquidity, maturity profile, and leverage. It also introduced macroprudential elements and capital buffers designed to improve the banking sector’s ability to absorb shocks from financial and economic stress; and reduce spillover effects from the financial sector to the real economy. Basel is an “art” form in the context of the need to perform skillful planning and creative visualization in fully comprehending its dynamic processes and uncertainties.
The spectrum of methodologies depends on the attributes of the segments and the degree of accuracy expected. These include estimating expected and lifetime loss assumptions from historical loss rates, roll rates (at either the aggregate or account level) and vintage curves to developing models for the Probability of Default (PD) and Loss-Given Default (LGD) parameters. For governance reasons, the technical aspects, features and assumptions of the models and estimation approaches should be thoroughly documented along with the points at which human judgment and intervention will take place. The limitations should also be described along with a discussion on how it will be addressed moving forward, what interim solution is in place (whether through a place holder number or proxy assumption), and if the resulting model risk is within tolerable thresholds.
For instance, loss rates, vintage curves and roll rates (e.g., Markov chain) are generally favored for the retail portfolio as these can be practically aligned with current risk management practices and provide an intuitive portfolio and term structure, especially for banks that are used to monitoring via segmentation and aging-based measures. The obvious drawbacks — such as backward-looking view, assumption of consistency in transition or delinquency movements, no capture of seasoning effects, slow reaction to changes in the portfolio mix and risk characteristics, recovery expectations that are difficult to incorporate, which render a 100% loss assumption when default stage is achieved — can be addressed by requiring multiple overlays and dynamic simulations to address the limitations that improve accuracy but also increase estimation risk.
In cases where models are built to explicitly calculate the PD and LGD parameters at the account, portfolio and facility levels, the more accurate models can be used for risk management purposes and even decision-support activities like pricing. Philippine financial institutions (FIs) that adopted models for certain exposures are aware of the “start-up” and continuing cost and investment required — building models requires significant effort, resources and time. Models also require rigorous maintenance, governance and validation. At this stage, the models that have been built may have produced quantitative results, but the real challenge is to allow these models to stabilize, learn and iterate. We estimate that FIs that have implemented models for IFRS and Basel purposes need another 12 to 15 months before gaining conclusive results.
Ensuring thorough documentation also helps drill institutions towards the full-scale use of machine learning. As the models and estimation approaches “learn” through time, complex computations will consolidate into pockets of decisions and will respond directly from the raw data footprint, which could range from sensor and mobility data used to evaluate logistical and supply chain-oriented customers to flow-based financial variables (as opposed to ratios). The implication is significant — the modeling and estimation approaches will bypass the stage of structured data and calculation parameters and enable the codification of decisions. It is just a matter of time before the parametric thinking approach to calculating expected credit loss (ECL) provisions and economic capital will be dislodged by the rise of “coding drivers.” Future-proofing exercises should therefore be applied, and we will come back to this with an illustration for corporate and institutional exposures.
What we have covered so far are the developments at the base ECL model — the composite PD, LGD and Exposure at Default (EAD) parameters — that reflect idiosyncratic or specific risks pertaining to the exposures. The other element that needs scrutiny and improvement in the coming months is the overlay mechanism, which, in IFRS, is intended to capture the forward-looking view and the interdependent relationships within the wider economy. To be specific, the overlay mechanism represents an institution’s own economic reading, which makes the IFRS 9 ECL process a foreseeing exercise of marking-to-model and marking-to-view.
This is where stress testing will be useful for FIs in plumbing the overlay mechanism. Stress testing also includes macroeconomic forecasting models that have evolved out of the need to support internal stress testing for financial and capital plans, as opposed to the regulatory stress testing that are currently designed to be uniform and which tend to be blunt (think of the real estate stress testing exercise). By design, stress testing is prepared for both immediate and long-term horizons and incorporate forward looking scenarios and interdependent factors. These properties — adjusted for the downturn scenarios — are what would help strengthen the overlay mechanism. The stress testing approaches we are seeing in the industry are first-generation models that have at least served the purpose of informing the IFRS 9 modeling and estimation approaches. The stress testing approaches are currently aggregations of calculations and processes that require a lot of manual intervention and judgment, ranging from the work-in-progress integrated stress testing used for strategic and corporate planning, financial and capital planning, and enterprise and business risk assessments to the resilience planning that underlies the capital adequacy and recovery planning. This naturally leads to confusion on the application of the forward-looking economic view and the probability-weighting of scenarios. The stress testing models we have seen in the industry need to be repurposed as dynamic and agile, and we expect another 12 to 15 months for development and strengthening. This improvement is timely given the full implementation required for the stress testing and macro-prudential regulations by 2019 at the latest.
In the third part of this article, we will continue with what FIs can expect in the next 12 to 15 months.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the authors and do not necessarily represent the views of SGV & Co.
Christian G. Lauron is a Partner of SGV & Co.
ROS clinches no. 1 spot with win over Meralco
By Michael Angelo S. Murillo
Senior Reporter
THE Rain or Shine (ROS) Elasto Painters are already assured of finishing at no. 1 at the end of the elimination round of the Philippine Basketball Association (PBA) Commissioner’s Cup after securing their ninth win in 10 matches with a 106-99 overtime victory over the Meralco Bolts on Sunday at the Smart Araneta Coliseum.
Needing to win to formalize their claim of the top spot, the Elasto Painters had to dig deep to notch the win in the face of a gallant and resilient challenge from the Bolts.
The victory earned for Rain or Shine the twice-to-beat incentive in the quarterfinals of the midseason PBA tournament as it battles the no. 8 team in the next round.
Waxing hot from beyond the arc, the Elasto Painters got off to a strong start, taking a 21-9 lead in the first six minutes of the opening quarter.
But the Bolts would go on a 16-2 run after to take the lead, 25-23, at the 1:50 mark.
Rain or Shine eventually survived the charge back by Meralco to hold a slim 28-27 lead in the end.
The two teams jostled in the early part of the second canto, fighting to a 37-36 count in the opening minutes before Maverick Ahanmisi took the lead in a Rain or Shine breakway.
From a one-point lead, the Elasto Painters built a 13-pont cushion, 64-51, as the quarter ended.
In the third period, Rain or Shine took off from the momentum it built to finish off the second frame, outscoring Meralco, 9-4, to build its biggest lead of 18 points, 73-55, with 8:32 on the clock.
Baser Amer, however, would not allow the Bolts to go deeper than that, leading a ferocious rally to tie the count at 80-all at the 1:25 mark of the third.
Rain or Shine when the smoke cleared in the period held an 84-81 lead.
With the outcome of the match very much open, the protagonists went back and forth to start the final quarter.
The score was at 94-all with 6:23 to go on the clock.
A Chris Tiu basket made it 96-94 for the Elasto Painters at the 4:15 mark before Mr. Amer leveled the count anew at 96-all two minutes later.
The teams had several chances to go ahead after but had a hard time punching through, sending the game into overtime.
In the extra period, import Reggie Johnson took charge, scoring the first five points of Rain or Shine to help his team to a 101-98 lead entering the last two teams.
The Elasto Painters continued to hold sway, 102-99, a minute later.
Meralco tried to level count with a three-point attempt by Chris Newsome with 30 seconds to go but missed.
A split free throw from Mr. Tiu after made it 103-99 before Rain or Shine put the game away with 13 ticks to go with an Ed Daquioag triple to make it 106-99.
Mr. Johnson led Rain or Shine with 21 points and 18 rebounds while Mr. Ahanmisi added 20 points.
Mr. Newsome, meanwhile, led Meralco with 21 points and import Arinze Onuaku finishing with 20 points and 10 rebounds.
“It was a great team win. Everybody stepped up. This is a big win because now we can concentrate on the playoffs,” said Mr. Johnson after the win.
Germany rescues World Cup hopes with late Kroos goal
SOCHI, RUSSIA — Toni Kroos rescued Germany’s World Cup hopes in dramatic fashion on Saturday, curling in a stunning free kick deep into injury time to seal a 2-1 win against Sweden.
Germany’s late, late show keeps Joachim Loew’s on course to be the first team to retain the title in 56 years but their fate is still not entirely in their own hands.
The defending champions were in desperate trouble when Ola Toivonen lifted the ball over Manuel Neuer to put the Swedes ahead in the first half in Sochi after Kroos gave the ball away.
Germany, looking far sharper than it did in its opening defeat against Mexico, piled forward and eventually earned their reward when Marco Reus reacted quickly to turn the ball in shortly after the interval.
Despite incessant pressure, Loew’s men could not find the goal they craved as time ticked away and Germany’s task was made more difficult when key defender Jerome Boateng was sent off in the 82nd minute for a second yellow card.
But Kroos had other ideas, stepping up in the 95th minute to curl a free kick from the left edge of the penalty area into the top corner, beating the despairing dive of Robin Olsen, who had been outstanding in the Swedish goal.
“We never lost hope. I think there was a bit of luck there with the goal scored in stoppage time, but it was a result of our belief in ourselves,” said Loew. “Despite the adversity, the team kept their cool and turned it around.”
Germany — level with Sweden on three points, with Mexico on six points — must now beat South Korea in Kazan on Wednesday and hope the other result in Group F goes their way.
MEXICO WIN
Mexico showed that its shock defeat of Germany last weekend was no fluke with a 2-1 defeat of South Korea in Rostov-on-Don.
West Ham striker Javier Hernandez grabbed his 50th international goal while Los Angeles FC forward Carlos Vela was also on target from the penalty spot.
South Korea scored a late consolation strike from Tottenham’s Son Heung-min, but it was too little, too late for the Asian giants, who desperately needed a victory after losing to Sweden in their opening game.
LUKAKU, HAZARD STRIKE
In the first game of the day, Belgium produced an imperious display to overwhelm Tunisia, with Premier League stars Romelu Lukaku and Eden Hazard scoring two apiece in a 5-2 rout at Moscow’s Spartak Stadium.
The one-sided victory cemented Belgium’s place at the top of Group G and all but guaranteed their place in the knockout rounds, with just one group game, against England, remaining.
Manchester United striker Lukaku took his goals tally to the tournament to four as the Red Devils carved open Tunisia’s defense with an impressive attacking display.
Dylan Bronn and captain Wahbi Khazri grabbed consolation goals for Tunisia, who now face almost certain elimination.
Belgium and England will qualify for the last 16 on Sunday if England defeat Panama in Nizhny Novgorod.
As the fallout from Friday’s politically charged clash between Switzerland and Serbia rumbled, FIFA opened disciplinary proceedings against Swiss players Granit Xhaka and Xherdan Shaqiri over their pro-Kosovo goal celebrations.
FIFA is also probing Serbian national team Mladen Krstajic for alleged statements made after the game.
Both Xhaka and Shaqiri, who have roots in Kosovo, a former province of Serbia that has declared independence in a move not recognized by Belgrade, celebrated their goals in the 2-1 win by making a gesture representing the Albanian flag.
Disciplinary proceedings have also been opened against the Serbian FA for crowd disturbances and the display of political and offensive messages by Serbian fans, world football’s governing body said in a statement.
Krstajic demanded German match referee Felix Brych be tried as a war criminal in The Hague after failing to award his team a penalty.
The now-defunct Hague-based International Criminal Tribunal for the former Yugoslavia was a UN body that prosecutes the perpetrators of war crimes committed during the wars in the former Yugoslavia. — AFP
Ray Parks makes everybody look good in Mandaluyong El Tigre first MPBL victory
IMUS — Challenged by his coach to let his game do the talking, Ray Parks put on a solid performance, one that would speak volumes of how a great player he is.
Late Saturday night at Imus City Sports Complex here, the son of the late seven-time PBA Best Import made everybody on the Mandaluyong El Tigre’s lair look good and powered his team to a 71-61 win over the Zamboanga Valientes-Family’s Brand Sardines in the MPBL Datu Cup.
Earlier, Gen San invaded Imus and the visiting Warriors pulled off a hard-earned 79-73 triumph over the GLC Truck and Equipment-backed Bandera.
Parks dished out a league high 15 assists, eclipsing the previous record set by Paolo Hubalde of the Valenzuela Classic-CDO Idol Cheesedog. The back-to-back UAAP and ABL MVP also added 13 markers on top of six rebounds.
“I challenged him not to ruin his name by saying things like that. It won’t help him anyway,” Mac Cuan, head coach of the Mandaluyong El Tigre, told BusinessWorld. “The only way he could shut up the critics is by playing his game.”
Against the Valientes, Parks showed a glimpse of his greatness.
His court vision was phenomenal as he was setting up his teammates good looks top the basket. When his offense is needed, he would step up and knock down big baskets. Most of all, he was playing with a lot more energy, which was crucial in the win, according to Cuan.
“We lost our first game because we simply came out flat. During our past few practices, we tried to identify players who play with more energy and this will be essential in our win,” added Cuan.
One among the players who stepped up was Prince Rivero the undersized forward, who led his team’s production with 18 points. Gian Abrigo, a hardworking forward who was rarely utilized in the last outing, grabbed 13 rebounds for the El Tigre.
The El Tigre posted a 15-point lead, 46-30, early in the third period, but Von Lanete, brother of Chico and Garvo, who are now both playing in the PBA, rallied the Valientes. His back-to-back triples along with one hit by Noy Javier shoved Zamboanga within striking distance, 46-45.
Mandaluyong, however, responded with nine unanswered points to pull away anew. — Rey Joble