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MWSS approves lower Metro Manila water bills

WATER BILLS in areas served by Metro Manila’s two service concessionaires will dip starting April 1 after the regulator approved the adjustments to reflect the peso’s slight appreciation against the dollar.

“There’s going to be a rollback in the prices of water for the second quarter of 2018. This will be effective April 1,” Patrick Lester N. Ty, the chief regulator of the Metropolitan Waterworks and Sewerage System (MWSS) regulatory office, told reporters on Tuesday.

For west zone concessionaire Maynilad Water Services, Inc., the decrease will amount to P0.01 per cubic meter (/cu.m.), and for the east zone’s Manila Water Company, Inc., the rate cut will be P0.04/cu.m., he said.

“The reason for the rollback is the average dollar exchange rate in January 2018. The peso appreciated vis-a-vis the dollar. We all know that in February and March, the dollar actually went up; the peso depreciated,” Mr. Ty said.

“But at least the timing was okay with us for this FCDA (foreign currency differential adjustment) because we only took the average exchange rate in January.”

Mr. Ty noted that the peso-dollar exchange rate in January was at around P50.50, stronger than P51.30 previously.

Water concessionaires are allowed to recover losses or give back gains through the FCDA tariff mechanism that factors in the movements of the peso against foreign currencies. The scheme has been set because the water concessionaires pay foreign currency-denominated concession fees to the MWSS, as well as loans to fund service improvement projects that upgrade and expand water and wastewater services.

Mr. Ty said both Maynilad and Manila Water had been informed of the recommendation of the regulatory office and the subsequent approval by the MWSS board of trustees on March 8.

The net effect of the adjustment will be a P0.20 and P0.06 reduction in the monthly water bill of Manila Water and Maynilad customers using up to 10 cu.m. a month, respectively. For those using 20 cu.m., the corresponding decrease will be P0.45 for Manila Water and P0.23 for Maynilad. The reduction for 30 cu.m. customers is P0.91 for the east zone and P0.46 for the west zone.

Maynilad customers consuming 10 cu.m. will pay a total of P206.05; those using 20 cu.m., P455.52 and those with 30 cu.m. consumption, P929.86. Manila Water customers consuming 10 cu.m. will pay P138.62, those using 20 cu.m., P305.55 and those using 30 cu.m., P622.09.

Mr. Ty, who assumed office in August 2017, said one of the initiatives of the regulatory office is to raise the sewerage coverage of Metro Manila’s water concessionaires. “We are pushing them to increase their coverage at least within the next five years.”

The target sewerage coverage by 2021 for Maynilad and Manila Water is 47% and 39%, respectively. In order to achieve those targets, Maynilad and Manila Water need to invest P30.19 billion and P37.44 billion, respectively, in 2018-2022, equivalent to a third of capital expenditure in that period, Mr. Ty said. From 2018 to 2037, when full sewerage coverage is targeted, the required investment is P131.64 billion for Maynilad and P153.44 billion for Manila Water. — Victor V. Saulon

P71-billion infrastructure, MSME projects OK’d

A CABINET-LEVEL body has approved P71.35 billion worth of flood-control and bridge projects as well as one that aims to enhance the productivity of micro, small- and medium-scale enterprises (MSMEs), the National Economic and Development Authority (NEDA) said on Tuesday.

NEDA said in a statement that its Investment Coordination Committee-Cabinet Committee — co-chaired by Finance Secretary Carlos G. Dominguez III and Socioeconomic Planning Secretary Ernesto M. Pernia — approved the projects at its March 8 meeting, endorsing them for confirmation by the NEDA Board led by President Rodrigo R. Duterte.

Approved were:

• construction of P39.2 billion worth of dikes and floodgates along the Ambal-Simuay River and Rio Grande de Mindanao;

• the remaining 10 priority bridges crossing Pasig-Marikina River and Manggahan Floodway worth P27.37 billion (the first two — the Binondo-Intramuros and Estrella-Pantaleon bridges — with a total cost of P5.98 billion and funded by a China grant was approved by the NEDA Board on Sept. 12 last year);

• and the P4.78-billion Rural Agro-Enterprise Partnership for Inclusive Development and Growth Project (RAPID Growth) designed to improve productivity of 78,000 farming households by generating employment opportunities.

The flood-control and the bridge projects form part of the 75 flagship projects of the Duterte administration. — EJCT

Petron earnings hit P14B in 2017

PETRON Corp. on Tuesday said its consolidated net income rose 30% to P14.1 billion in 2017, with robust sales volume fueling the growth along with the results of the company’s focus on high-value consumer segments in the Philippines and Malaysia.

“We were able to capture increased fuel demand with the robust growth in the Philippine and Malaysian economies. Underpinned by large scale infrastructure projects, we see strong demand growth in both markets over the medium term and this bodes well for our business,” said Ramon S. Ang, Petron president and chief executive officer, in a statement.

“Even with our strong presence backed by our unmatched logistics and production capabilities, we are committed to invest more and help secure the country’s energy needs,” he said.

Petron reported its consolidated sales revenues jumped 26% to P434.6 billion in 2017, driven by strong sales volume. Operating income likewise increased by 16% to P27.6 billion last year.

Last year, consolidated sales volume reached 107.8 million barrels, topping Petron’s “record-breaking” 105.7 million barrels in 2016, the company said.

The oil refining and marketing company said consolidated retail volumes grew by 8% as Petron continued to expand in the highly competitive segment to breach the 3,000 service station count during the year.

“Sales of high-margin products such as gasoline, Jet A-1, and lubricants grew by double digits in 2017,” Petron said.

In early 2017, the company launched the first and only Euro 6 fuel in the Philippine market — Blaze 100 Euro 6, it said. Lubricants such as Blaze Racing helped grow this business by 15%, it added.

The company said sales would have been higher if not for scheduled maintenance turnarounds in its 180,000 barrel-per-day Bataan refinery and its 88,000 barrel-per-day Port Dickson refinery in Malaysia.

Petrochemicals, such as propylene, provided good margins and additional revenue as volumes grew by 9%, Petron said.

“The company is also expanding its logistics and retail network in both countries to meet more demand,” it added.

On Tuesday, shares in Petron rose 2.36% to P9.54 each. — Victor V. Saulon

Aboitiz buys additional UnionBank shares

ABOITIZ EQUITY Ventures, Inc. (AEV) said it has purchased around P270 million worth of shares in its banking unit, Union Bank of the Philippines, Inc. (UnionBank).

In a disclosure to the stock exchange on Tuesday, AEV said it purchased a total of 3.11 million common shares in Union Bank, priced at P90.75 apiece.

Sought for comment, AEV said the transaction brings its ownership in UnionBank to 49.12% of the total outstanding shares in the company, from 48.34% by the end of 2017.

The transaction follows AEV’s decision to consolidate it banking and financial service businesses last February. It earlier announced the signing of a share purchase agreement for the sale of its 51% stake in PETNET, Inc. to UnionBank’s subsidiaries, City Savings Bank, Inc. and Union Properties, Inc., for P1.2 billion.

AEV said the consolidation of its banking units will help unlock shareholder value for the company, given the synergies between the core businesses of CitySavings and PETNET.

UnionBank was the second largest contributor to AEV’s income in 2017, accounting for 18% of its P21.6-billion earnings last year. Its contribution to AEV however decreased by 16% to P4.1 billion from P4.9 billion in 2016.

The listed bank posted a 16.9% profit drop in 2017 to P8.4 billion due to the absence of one-off trading gains last year. On the other hand, core profit jumped 31% to P8.2 billion.

The lender also reported that its assets grew by 18.6% to P622.1 billion by the end of 2017, while total deposits rose to P447.6 billion, 18.9% higher year on year.

Meanwhile, AEV’s earnings were down by 4% to P21.6 billion in 2017, due to non-recurring losses which swelled to P2.3 billion against 2016’s P347 million. Excluding these one-off losses, AEV’s earnings would have increased by 5% to P23.9 billion.

Shares in AEV were up five centavos or 0.07% to P76 each, while shares in UnionBank dropped 75 centavos or 0.82% to end at P90.25 apiece at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

Bayad Center launches mobile app for convenient bills payment

PAYMENT solutions provider Bayad Center (BC) has launched on Tuesday a mobile app to complement its more than 12,000 payment locations nationwide and extend its reach to include the growing “mobile” market.

“Everyone wants everything to be simple. The BC Mobile is just that. It puts together in one app all your payment needs, no bells and whistles,” said Wendell Kristian P. Labre, CIS Bayad Center, Inc.’s marketing head.

The mobile app can send customers a reminder for their due dates, show the nearest Bayad Center branches and authorized partners, and allow bills payment “on the fly.”

“No need to enroll in different online payment sites, because BC Mobile carries under its umbrella the string of billing partners, and the seal of service and reliability that Bayad Center offers,” Mr. Labre said.

The app, a one-stop online shop for all your bills payment needs, takes out the need to fill out forms and mail bills on a monthly basis. It allows customers to pay bills “anytime, anywhere” using mobile phones.

“For most of us who are always online yet still prefer paying over-the-counter or face-to-face, the branch locator shows you the list of Bayad Center branches, authorized partners, collecting agents and automated payment machines near you,” he said.

In the future, the mobile app will offer remittance or money transfer services, prepaid loading and selling of Instasurance — a microinsurance for tricycle, jeepney drivers and similar workers.

The app will also be linked to Bayad Center’s loyalty program, which will also be launched this year, company officials said. It will also include features such as bills payment management, where users can view payment history across different payment channels. It will also offer information that will help others identify branches with shorter queues. — Victor V. Saulon

Joyas make another splash at Salcedo Auction’s sale

GOING, GOING, GONE — the hammer went down on March 10 in Salcedo Auctions’ “Important Philippine Art” auction, and items of interest included two paintings by National Artist Jose Joya: Tagaytay Mist, sold at P16 million and Coast of Cavite, sold at P7.5 million.

Joya’s Coast of Cavite was estimated to sell at P3.5 million to P4.5 million, but obviously exceeded expectations. Meanwhile, a palpable buzz felt in excited whispers brought up the price of Joya’s Tagaytay Mist from an opening bid of P12 million. The winner, who placed their bids via phone, will be quite impressed with the 60 x 108 inch artwork displaying a variety of shapes in primary colors and pastels, a paean to the breezes of the hillside city.

Another work which generated a high price was the recently deceased Mauro “Malang” Santos’s Tres Marias, which had an opening bid of P5.8 million and fetched a hammer price of P7.3 million.

All of these came with a buyer’s premium of 16.8%.

Recently, another Joya, Space Transfiguration, set the record for the highest price so far paid for an artwork sold at auction in the country: it went for a total price of P112 million at the Leon Gallery auction on March 3. When asked if he hoped to fetch a similar price for a similar piece, Salcedo Auctions director Richie Lerma said: “It’s very difficult for me to comment on the prices of other galleries, because I don’t know how those prices were arrived at. It’s not obviously in the same manner that Salcedo Auctions achieves prices at auction.

“Whenever there are pieces that are announced by other entities, we take it with a grain of salt — especially in an unregulated auction environment such as the Philippines.”

Also held that day was the “Important Furniture, Tribal Art & Ethnographic Art” auction, where pieces of furniture dating back to the 19th century were also sold. A magnificent narra chest of drawers with kamagong and lanite inlays sold for more than P600,000 after an estimate of P240,000. Meanwhile a comoda from Quezon, made of narra and inlaid with carabao bone, kamagong, and lanite sold for an eyebrow-raising P950,000 after an estimate of P180,000.

The real winner in the furniture category though, was an impressive buffet cabinet sourced from a family in Pasay, made of molave and narra, with original silver keyhole escutcheon and knobs. The piece, appearing like a heavily carved monolith and displayed along with some artworks on top in the auction house, was made in the first quarter of the 20th century by inmates in the Bilibid prison as part of a rehabilitation program during the American Occupation. It went for P1,518,400.

An item of interest for enthusiasts in the study of Philippine history would be Juan Luna’s letter to a friend, Don Ezequiel Ordonez. The letter was unique in that it was written while Luna was imprisoned following his killing of his wife Paz and his mother-in-law. While an enthusiastic bidding war raised the price of the letter from an estimate of P150,000 to a final bid of P260,000, Salcedo Auctions’ Mr. Lerma, who served as auctioneer, cheerfully stoked the flames by remarking that no more letters were coming in from prison.

Furniture, art, history: one might argue that these are best enjoyed when it allows the mind to become free, instead of generating millions which will sit prettily in a bank. Mr. Lerma thinks, however, that the trade in art actually gives more room for art to be enjoyed for its intrinsic, instead of its monetary value: “The most important thing is that people use their eye when it comes to appreciating work. To look at it as a form of investment — it is true, it is an investment, but primarily, it is an investment in yourself. You enjoy it so much that you’re willing to pay that much for it. That’s what it’s worth to you; that’s the most important thing.” — J. L. Garcia

BSP to maintain ‘gradualist’ approach in RRR cuts

By Melissa Luz T. Lopez
Senior Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) will maintain a measured approach in cutting bank reserves further, as making a large adjustment in one go could leave players surprised and cause market rates to plummet.

“It always pays to have a gradualist approach in changes in the way we do shifting in the various instruments,” BSP Assistant Governor Francisco G. Dakila, Jr. said during a press chat yesterday.

The central bank trimmed the reserve requirement ratio (RRR) imposed on universal and commercial lenders by one percentage point starting March 2. The “operational” adjustment is expected to free up some P90 billion in funding which the players can deploy for loans, investments and foreign exchange transactions.

BSP Governor Nestor A. Espenilla, Jr. has said that he would like to see the RRR eventually reduced to single-digit levels, pointing out that the high reserves stand as inefficiencies in the financial system as it makes borrowings more expensive. He noted that the phased reduction will be timed alongside an 18-month road map for debt market reforms.

The central bank expects to shore up the excess amounts through its weekly term deposit auctions and via placements in its overnight deposit facility.

Authorities said the RRR cut was timed as the central bank can now rely better on the weekly term deposit auctions to influence market rates, with the view that the regulator can deploy other macroprudential and targeted risk management measures to contain its potential impact on inflation and credit growth.

BSP Deputy Director Dennis D. Lapid said they will continue to chart its slow but sure approach towards reserve cuts, with the current 19% level still the highest in Southeast Asia.

“If you do a one-time large adjustment, we’re not sure how the counterparties will respond also. It might be a case of these financial institutions trying to take a drink from a fire hose if you go to single digits in one big drop,” Mr. Lapid said.

“The risk with the large addition to system liquidity… is that some of the short-term instruments might also drop outside of the corridor, which would in a way negate the gains we’re seeing in terms of interest rate adjustments.”

For example, Mr. Lapid said auction volumes under the term deposit facility have been hiked from P80 billion to P110 billion, with expectations that the additional P30 billion each week will capture the additional money supply.

Asked when the next RRR cut is expected, Mr. Dakila said: “Generally as a rule, especially when talking about monetary instruments, central banks don’t like to pre-commit — meaning they don’t want to promise a move in advance. We look at the data.”

Let them photograph the art says historian Ambeth Ocampo

WHEN members of the public want to see artworks by National Artists Fernando Amorsolo or Benedicto “BenCab” Cabrera or Jose Joya, they have to go to a museum or art gallery to do so. But these spaces have only a limited number of the masters’ works — most of their works are in private hands, locked away from the public’s view. To democratize art, Ambeth Ocampo, a well-known Philippine historian, academic, and columnist, supports the online availability of Philippine art.

Speaking as the guest for Bank of the Philippine Islands (BPI) Foundation’s exhibition opening of Pagpugay, which is part of a series of art exhibitions called Obra, Mr. Ocampo said: “What we see are the cream of the crop, and these paintings that you see are either in the executive dining hall upstairs or in the corridors to which not everyone is welcome or invited. So, to have an exhibition in a public space like this makes it accessible to ordinary people like you and me,” he said, adding that he also hopes to see them online.

The BPI Foundation has acquired, over the years, more than 900 works by Filipino artists, of which 21 are currently on display at the Ayala Museum until March 25.

“You only showed the nice pieces and I’m sure the 879 are not as valuable,” Mr. Ocampo said in jest.

With the aim of bringing art to the public, the Obra series of exhibitions will show works by National Artists Fernando Amorsolo, Jose Joya, BenCab, and Hernando Ocampo, plus works by glass sculptor Ramon Orlina and paintings by Mauro “Malang” Santos.

NO PICTURE TAKING ALLOWED
Its first installment, Pagpugay, pays tribute to paintings and sculpture that focus on the Filipino family, and cultural beliefs and practices. One of the most iconic Filipino artists who perfectly captured the lives of Filipinos is Amorsolo, who has seven paintings on view that depict bucolic settings with mango gatherers, women with fruit baskets, dancing the tinikling, and harvesting rice.

Selfie and Instragram addicts beware though: museumgoers are prohibited from taking pictures of any of Amorsolo’s iconic works.

“You can see these walls with signs [saying] ‘no photography,’ which I don’t agree with,” Mr. Ocampo told BusinessWorld at the sidelines of the event’s launch.

“Everyone has a cellphone, it democratizes the art. But then again there are legal copyright issues, so it makes things complicated, but we hope that one day [ we can see them online without restriction],” he said.

Mr. Ocampo is in favor of bringing art online because it initiates a further understanding and appreciation of art.

“One day, you will want to see the real thing. I mean like, I want to see the Mona Lisa, but I am in Manila. So I can see it on the Louvre’s Web site. There’s no substitute to seeing the original, but as a first step in appreciation you have to see [it virtually]. And you won’t see, if it’s locked up in an executive office,” he said.

Despite criticism that cellphones, the Internet, and social media have changed the ways we see, appreciate, and learn about art, Mr. Ocampo said that it should be shared, nonetheless.

“So in order for people to see it, appreciate it, and study it, it is easier to do it online. I mean there are big issues about it… and unless you’re invited [to an exhibition], it makes things more inaccessible. In the 21st century, access is important,” he said.

One criticism of the digitization of art is it diminishes the “real” feel of an artwork as opposed to seeing it face to face. Also, the age of social media and selfies has reduced artworks as mere backgrounds to one’s pictures. “People have criticized those who take pictures as ‘Ay, they are just taking selfies,’ but for me, at least they are looking. At least, they will bring it home. One day, it will hit them, at some point… It depends on how you look at it, but for me, it’s always good that you always look,” said Mr. Ocampo. — Nickky Faustine P. de Guzman

Supplemental reading: “Technology and arts, and the digitization of Malacañan Museum” https://goo.gl/mjs3Dk

CIMB taps FINTQ as it enters Philippine market

A MALAYSIAN LENDER has tapped FINTQnologies Corp. (FINTQ) as it enters the Philippine market as a digital bank.

In a statement on Tuesday, FINTQ, the financial technology (fintech) arm of PLDT Group’s Voyager Innovations, Inc., said it entered a partnership agreement with CIMB Bank Berhad (CIMB), in line with CIMB’s strategy to establish itself as a “digital-only” bank in the country.

“We are confident that by leveraging on these partners’ local strengths as well as CIMB’s extensive digital experience, we will be able to provide our customers in the Philippines with a seamless digital banking experience,” Tengku Dato’ Sri Zafrul Aziz, CIMB Group’s chief executive officer (CEO), was quoted as saying in the statement.

“[W]e are also confident that our differentiated strategy based on digital and partnerships will bring a strong value proposition into the market.”

Voyager Innovations President and CEO Orlando B. Vea said the collaboration will provide the fintech firm’s customers more loan products through its digital platform Lendr.

In particular, FINTQ Managing Director Angelito M. Villanueva said that CIMB would “initially [offer] appliance loans via Lendr,” he said in a text message.

Through digital means, customers can apply for their desired loan products by visiting Lendr’s Web site or downloading its mobile application, without having to visit a bank branch.

Offering financial products digitally instead of opening brick and mortar branches can trim banks’ operational costs, which can translate to higher efficiency and profitability.

“We are excited to collaborate with CIMB on this fast growing fintech space. This is in line with our mission to collaborate with partners and develop mutually beneficial propositions,” PLDT Inc. Chairman Manuel V. Pangilinan was also quoted in the statement.

“This is just the start of a long-term fruitful partnership with one of [Southeast Asia]’s largest banks.”

Aside from FINTQ, CIMB also entered into a partnership agreement payment collection firm CIS Bayad Center, Inc., also an affiliate of the PLDT Group.

In a separate statement from CIMB, the partnerships were forged “in preparation for the establishment of its operations in the fourth quarter of 2018.”

CIMB is the second-biggest bank in Malaysia after Malayan Banking Berhad or Maybank.

According to CIMB’s Web site, it has total assets of $129.71 billion as of end-2017 and is present in 15 markets worldwide.

Voyager Innovations is PLDT’s digital innovations unit. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Karl Angelo N. Vidal

Luz abstracts, Perez’s churches at Rustan’s

COLLABORATIONS between a young artist and her National Artist grandfather, and paintings of churches are the highlights of an exhibit Rustan’s For the Arts featuring Al Perez and Paulina Luz Sotto.

Rustan’s founder Gliceria Tantoco was an avid supporter for the arts, and since the founding of Galerie Bleue at Rustan’s Makati in 1984, Rustan’s has continued to celebrate Filipino talent. “We started Rustan’s for the Arts in 2016 and we exhibited various local artists that were not as known and that’s the core of the project — going back to our roots,” said marketing communications manager for Rustan Commercial Corp. Dina A. Tantoco. “Now that art is becoming a part of our lives and a lot of the local artists are being discovered and developed, we also have created a campaign to support them,” she told BusinessWorld at the exhibit’s launch.

WORKING WITH GRANDFATHER
Paulina Luz Sotto, who painted portraits in her teen years, only began painting abstracts in 2015 as a pastime after graduating from college. “I woke up one day, and I had this idea with lines. So, I put it on canvas and, like any millennial, I put it on Instagram. And then, when I had a few abstract paintings, someone asked me if I was selling,” she told BusinessWorld.

The artworks on display showcase her fascination with lines and geometric figures. Some were done in collaboration with her grandfather, National Artist for Visual Arts Arturo Luz. Their collaborative works are identifiable through the use of black, white, red, and gold — what Ms. Sotto describes as her grandfather’s color palette.

Asked if her grandfather mentored her as a child, Ms. Sotto said: “People think he does, but he doesn’t. I’ve [actually] never seen him paint. I lived with him most of my life, but he’s never really mentored me. He gives me advice, but [it’s] not really mentoring.”

Rustan's for the Arts 2
Miag-Ao Church, Iloilo City by Al Perez. — MICHELLE ANNE P. SOLIMAN

The 25-year-old said: “(The ideas) really just are all in my head. I’m not the type of person who goes out and observes everything… I’m more of — I sit in my studio. I sit in my chair. I think. And I doodle.” She said that she hopes to continue painting and that “hopefully more people appreciate my work. I’m just waiting for new ideas and to continue evolving.”

INSPIRED BY CHURCHES
Al Perez brings history alive through his paintings of churches, travelling around the country to capture their beauty.

He told BusinessWorld that his fascination with religious architecture is due to the fact that he hails from Bulacan which is known for its churches. Aside from the churches, Mr. Perez has explored a variety of subjects, from Philippine rural life, nipa huts, portraits, nudes, and flowers. Despite his mastery, Mr. Perez said that churches are more difficult to paint compared to portraits and still life since “kailangan lahat ng detalye kuha mo (You need to capture all the details.)”

Mr. Perez has partnered with the Philippine Tuberculosis Society on a fund-raising effort where 40 of his church paintings were made into postage stamps and sold at P395 a sheet. The postage stamps are available at the Philippine Tuberculosis Society headquarters in Quezon city, Art Asia gallery in SM Megamall, and Rustan’s Makati.

The exhibit runs until the first week of April at the 4/F of Rustan’s Makati. — Michelle Anne P. Soliman

Contest on for symphonic music inspired by Banaue

MUSIC THAT extols the beauty of the centuries-old rice terraces and traditions of the Ifugaos is at the heart of the newly launched Banaue International Music Composition Competition (BIMCC), said Josefino “Chino” Toledo, the competition’s artistic director.

“The restoration has been underway for a few years now but this competition was made to further gain awareness for the project,” Mr. Toledo told BusinessWorld during a press conference on March 8 at the Makati Shangri-La.

The competition is part of Universal Harvester, Inc.’s Banaue Rice Terraces Restoration Project, a multi-year project which identified 49 hectares for renovation of which 16.34 have been successfully restored as of last year, according to a presentation by Jaime delos Santos, a member of the restoration project.

The BIMCC seeks original symphonic works that are inspired by the Banaue — the land, the people, and its culture.

“We want Banaue to become an inspiration for what they will create, kind of like [Strauss’] ‘Blue Danube’ which was created centuries ago but remains popular today,” Mr. Toledo explained.

The Banaue Rice Terraces — which were carved into the mountains of Ifugao province — are centuries-old structures (though the age is still in dispute) that represent much of the Ifugao culture revolving around rice and farming. The terraces were declared a National Cultural Treasure by virtue of Presidential Decree No. 260 in 1973.

As such, the competition asks composers from around the world to submit a symphonic orchestra (single or multi-movement) composition running from 11-15 minutes.

While the competition is open to all composers without restrictions on nationality, applicants should at least be at the early stages of their professional careers, said Mr. Toledo.

After making an initial call for entries in November 2017, Mr. Toledo said composers from Estonia, Colombia, South Africa, Spain, and Russia have either expressed their intent to join or have already submitted pieces.

From all the entries submitted, the BIMCC will select 20 composer-fellows who will be brought to Banaue where “they will learn and experience local culture and music.”

“With [this] new perspective and inspiration, the composer-fellows may revise their entry before the semi-finals,” said a press release.

A symphony orchestra will be brought to Banaue for the semifinals so the composers can perform their revised entries for the residents. Of the 20, 10 will be chosen for the finals night to be held on July 25 at the Cultural Center of the Philippines. The winner will receive $12,000 while two consolation prizes of $6,000 will also be given.

Interested applicants may visit www.banauemusic.org for the guidelines. Deadline for submission of entries is on April 15. — ZBC

Central banks urged to study digital currencies

DIGITAL CURRENCIES are a revolutionary tool that central banks should consider, but they remain far too risky to be used as legal tender any time soon, according to the Bank for International Settlements (BIS).

The BIS — the club of the world’s largest central banks — said in a report on Monday that the new form of money could one day be issued by policy makers for tasks such as settling payments among financial institutions. At the same time, it warned that digital coins might destabilize traditional lenders if offered widely to the general public.

“General-purpose central-bank digital currencies could revolutionize the way money is provided and the role of central banks in the financial system, but these are uncharted waters,” said Benoit Coeure, a European Central Bank board member who chairs the BIS Committee on Payments and Market Infrastructures.

The Basel, Switzerland-based BIS cautioned that much more “experimentation and experience” would be needed before the introduction of central-bank digital currencies, or CBDCs, could even be considered.

G-20 DEBATE
As Bitcoin and its peers threaten to invade central bankers’ home turf, national authorities are probing new ways of making payments, and the topic of regulation is on the agenda of Group of 20 finance chiefs who will meet next week in Buenos Aires.

More than 1,200 years after the first paper banknotes appeared in China, the use of physical cash is in demise in various countries as digital transactions surge. The rise of distributed-ledger technologies and the peer-to-peer concept of private digital money challenges the raison d’être of central banks, which for centuries have dominated currency issuance and paid their bills by doing it.

Opinions about issuing CBDCs diverge greatly. While Federal Reserve Chairman Jerome Powell and Bank of England Governor Mark Carney have expressed skepticism, the Riksbank in Sweden, where more than a third of the population never uses cash, is considering the introduction of an e-krona as a complement to banknotes and coins.

The BIS concluded that wholesale digital currencies and their underlying technologies have the potential to make settlement of securities and derivatives transactions more efficient, even though proposals so far look broadly similar and not clearly superior to those in place.

Likewise, digital currencies could serve as a “robust and convenient” alternative to cash, but already available, fast and efficient retail payment products — such as the European Central Bank’s TIPS or TARGET instant payment settlement — probably limit its benefits.

The issuance of CBDCs probably wouldn’t change the basic mechanisms for carrying out monetary policy, the BIS said. However, it could challenge the two-tier banking system and exacerbate any financial crisis as depositors seek havens for their cash.

A CBDC “could allow for ‘digital runs’ towards the central bank with unprecedented speed and scale,” the BIS said. “Even in the presence of deposit insurance, the stability of retail funding could weaken because a risk-free CBDC provides a very safe alternative.”

The appeal of a such a currency would be more pronounced if it were interest-bearing. A liquid and creditworthy asset could compete with short-term government debt and regular bank deposits, potentially leading to more volatility in those financial-market segments, according to the report.

The BIS also highlighted that, like banknotes, digital currencies can fall victim to illegalities — as a direct target or a means of transaction.

Coeure indicated on a conference call with reporters that the initiative to regulate private cryptocurrencies, led by Germany and France, probably won’t immediately result in concrete action.

The BIS urged central banks to continue their studies of digital innovations and also consider the implications of not issuing CBDCs. The Fed’s Powell said last year that “governance and risk management will be critical” for cryptocurrencies.

“Technological developments have raised questions about the feasibility and desirability of combining distributed ledger technology with the trust inherent in fiat currencies to create a central bank digital currency available to all,” Carney, who chairs the BIS’s Global Economy Meeting and the Financial Stability Board, said in a statement alongside the report. “The policy issues that this would raise, for central banks and society more generally, need careful consideration.” — Bloomberg

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