PHL banks’ Q2 exposure to real estate sector lowest in 4.5 years

October 9, 2024 | 12:03 am

By Luisa Maria Jacinta C. Jocson, Reporter

THE EXPOSURE of Philippine banks and trust entities to the property sector declined to 19.92% at end-June, data from the Bangko Sentral ng Pilipinas (BSP) showed.

This was lower than the 20.31% ratio at end-March and the 20.8% logged in the same period a year ago.

This was also the lowest real estate exposure ratio recorded in four and a half years or since the 19.84% seen as of December 2019.

The BSP monitors lenders’ exposure to the real estate industry as part of its mandate to maintain financial stability.

Investments and loans extended by Philippine banks to the real estate sector rose by 3.6% to P3.16 trillion as of June from P3.05 trillion a year ago.

Broken down, real estate loans increased by 7.3% to P2.79 trillion in the period from P2.6 trillion at end-June 2023.

Residential real estate loans jumped by 8.9% year on year to P1.04 trillion from P958.192 billion, while commercial real estate loans edged up by 6.1% to P1.74 trillion from P1.64 trillion.

Past due real estate loans stood at P141.254 billion, higher by 7.1% from P131.843 billion a year prior.

Past due residential real estate loans rose by 3.5% to P97.89 billion from P94.59 billion, while past due commercial real estate loans climbed by 16.4% to P43.37 billion from P37.25 billion.

Meanwhile, gross nonperforming real estate loans went up by 5% to P110.862 billion as of the second quarter from P105.632 billion a year ago.

This brought the gross nonperforming real estate loan ratio to 3.98% at end-June, easing from 4.07% a year earlier.

On the other hand, real estate investments fell by 18.4% to P371.108 billion from P454.856 billion in the same period a year ago.

This, as debt securities declined by 16.7% year on year to P245.313 billion from P294.558 billion. Equity securities likewise dropped by 21.5% to P125.795 billion from P160.298 billion.

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said the low real estate exposure seen at end-June is in line with the slow recovery of the property market.

“It’s what we’re seeing right now. It’s definitely reflecting the slow take-up that we’re seeing in the market,” he said via phone call.

Mr. Bondoc said this was due to the lengthened remaining inventory life of unsold condominium units.

“We have about 21,000 units right now across Metro Manila and these remain unsold. These are ready for occupancy already. But the problem is, we’re seeing a slow take-up of this ready-for-occupancy (RFO) units, about 21,000 units, and our estimate is that it will take the market five years to fully absorb these unsold RFOs,” he said.

From 2017 to 2019, the annual average period for absorption of unsold RFOs was at 12 months, according to Colliers data.

“But right now, take-up(for the pre-selling sector) is only about 12,000 to 13,000 units and then the amount of time for the unsold RFOs to be absorbed is 60 months,” Mr. Bondoc said.

“So, it’s really a dampened market at this point, especially in Metro Manila. This only reflects the slow exposure of banks to the residential real estate market.”

Mr. Bondoc also noted that real estate developers are not launching new projects, especially in Metro Manila.

“They’re not launching a lot of vertical projects. If you’re seeing less launches right now, after four or five years, these launches will be under bank financing. Definitely, we will see reduced exposure of the Philippine banking system to residential loans in the near to medium term,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the lower exposure of banks was also due to the “adoption of credit risk management based on global best practices.”

This led to “more prudent management of property exposures in view of prescribed limits set by regulators also partly led to the decrease in the said exposures to the sector,” he said in a Viber message.

In 2020, the central bank raised the real estate loan limit of banks to 25% of their total loan portfolio from 20% previously to help free up additional liquidity as a relief measure during the coronavirus pandemic.

Mr. Ricafort also noted higher vacancies due to the rise in hybrid or remote work arrangements, shuttering of Philippine offshore gaming operators (POGOs) and increase in online businesses.

“Thus, the continued need for banks to diversify their loan portfolio and credit risk exposures, also in view of tighter capitalization standards that may require higher risk weights for riskier loans and investments, including those in the real estate sector,” he added.

Separate data from the central bank showed that the Residential Real Estate Price Index rose by an annual 2.7% in the second quarter, much slower than the 6.1% recorded in the previous quarter.

Mr. Bondoc added that the BSP’s easing cycle will have a lagged impact on real estate loans.

“It will not be immediately felt by the market. We’re estimating, since the cut was just recent, perhaps early 2025 to mid 2025,” he said.

“If there will be additional cuts, perhaps if there are two more rounds this year, those will definitely be felt by mid of next year.”

The central bank began its easing cycle in August, cutting borrowing costs by 25 basis points (bps) to bring the policy rate to 6.25% from an over-17 year high of 6.5% previously.

BSP Governor Eli M. Remolona, Jr. earlier said that the Monetary Board can deliver 25-bp rate cuts at each of its last two meetings of the year.

“Definitely, there is greater room for policy rate easing, but in terms of their effect on mortgage rates, which currently is at 8.3% average, it will take a bit longer for the policy rate cut to have an effect on the actual mortgage rates imposed by banks. There really is a lag effect, so it will not have an immediate impact on the residential take-up,” Mr. Bondoc said.

The tragedy of proxy wars in the Middle East

October 9, 2024 | 12:03 am

The ongoing crisis in the Middle East is undeniable, yet often obscured by the sheer complexity of the conflicts unfolding in the region. The current bloodshed, destruction, and displacement are not merely a result of sectarian violence or regional rivalries; they are the tragic outcomes of a long-standing strategy of proxy wars. This has exacted a devastating toll on human lives and has made the prospect of peace more elusive.

Proxy wars are often utilized to obscure accountability and avoid direct retaliation, a common reason why terrorist groups are frequently used as proxies. For example, Hezbollah, which operates training camps in Lebanon’s Bekaa Valley and runs Al-Manar TV, possesses well-honed terrorist capabilities and has targeted civilians and military sites in Lebanon, Argentina, and Europe, enabling the execution of attacks on Israel and other adversaries.

By fostering proxy networks across the Middle East — Iran has backed terrorist groups like Hezbollah in Lebanon, Hamas and Islamic Jihad in Gaza, and various militias in Syria and Iraq —Tehran has successfully projected power beyond its borders while avoiding direct confrontation with rival states. The casualties of this approach, however, are the countless civilians who find themselves trapped in these conflicts.

The scale of this suffering underscores the systematic violation of the principles of human security. The United Nations outlines that human security should encompass freedom from fear, want, and the ability to live in dignity. Yet, for those in regions ensnared by proxy conflicts, these principles remain out of reach. Hunger is rampant as food supplies dwindle, and health crises deepen as hospitals struggle to cope with rising cases of diseases and the influx of casualties.

This situation is compounded in Lebanon, where the presence of Hezbollah — a group that owes much of its power and influence to its principal-agent — has turned the nation into another battleground.

Lebanon’s plight is emblematic of the broader consequences of this proxy strategy. Since the recent escalation of hostilities, over 1,600 people have been killed, and one million displaced in Lebanon alone. The damage to Lebanon’s economy, healthcare system, and social fabric is profound, leaving its people to contend with both the direct impacts of war and the constant threat of renewed violence.

As Hezbollah aligns its actions with its principal, Lebanon’s sovereignty is undermined, and its citizens are forced to endure the instability of a nation caught in the throes of external influence. The support given to Hezbollah allows it to operate with near autonomy, drawing Lebanon into conflicts that are its principal’s goals rather than those of the Lebanese people. Consequently, the country remains on edge, its future shaped by the whims of a foreign power intent on regional dominance.

Among the most devastating impacts of these conflicts is the damage to education. The relentless cycle of violence risks creating a lost generation — children who may never know the stability and security that education provides. This deprivation extends beyond the loss of knowledge; it deprives young people of hope and a future, deepening the trauma that they, and their societies, will carry forward.

Dr. Samah Jabr, Chair of the Ministry of Health in Palestine, describes the situation poignantly, observing that for many in Gaza and Lebanon, the term “post-traumatic” is misleading. The trauma they endure is ongoing, with little reprieve from the relentless threats to their safety and well-being.

Proxy wars have transformed the Middle East into a powder keg, where the effects of conflict spill over borders, impacting not only the region but the world. The interconnectedness of our global society means that no conflict is truly isolated.

The Philippines, for example, is home to a significant diaspora community working in the Middle East, and the safety and economic stability of these overseas workers are increasingly at risk. This situation highlights the urgency of a global response to these destabilizing activities. Countries with influence in the region must recognize and act to counter the perpetration of these proxy wars.

Moreover, sustained diplomatic efforts and humanitarian aid can alleviate the immediate suffering of those caught in the crossfire while addressing the root causes of the conflict.

The path to peace in the Middle East is fraught with challenges, yet the international community has a moral responsibility to seek an end to the hostilities exacerbated by proxy networks. By highlighting the devastating human cost of these wars, the world can begin to take steps toward a more stable and peaceful future.

Diplomacy, humanitarian assistance, and a firm stand against proxy warfare can pave the way for regional cooperation and diminish the destructive influence of foreign intervention. The cost of inaction is simply too high. Without a unified, determined response to proxy wars, the Middle East — and indeed the world — will continue to bear the burden of these tragic conflicts, paying a price that no society should have to.

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

Philippine Labor Force Situation

October 9, 2024 | 12:03 am

UNEMPLOYMENT in the Philippines eased to 4% in August as more female workers got hired in the service sector, the local statistics agency said on Tuesday. Read the full story.

Job gains by industry (Aug. vs July)

October 9, 2024 | 12:02 am

In August, employed Filipinos reached 49.15 million, higher by 1.46 million from July. This can be traced to 1.15 million jobs generated month on month by wholesale and retail trade. Read the full story.

Eton Properties Philippines signs sustainability pact

October 9, 2024 | 12:02 am

LUCIO C. TAN’S Eton Properties Philippines, Inc. has partnered with the ASEAN Centre for Biodiversity (ACB) to promote environmental sustainabiliy in real estate development.

A memorandum of understanding was signed on Sept. 27 for the partnership, which focuses on the management of protected areas within or near development sites, conserving natural habitats, and creating spaces to support local wildlife and plant species, Eton Properties said in an e-mailed statement on Tuesday.

The two groups will also work on improving disaster resilience via nature-based solutions and ecosystem-based approaches, sharing data and research results, and increasing awareness and engaging local communities on biodiversity conservation.

“This partnership demonstrates our shared vision to build a sustainable future, where economic growth complements the preservation of our natural ecosystems,” Eton Properties Philippines President and Chief Executive Officer Kyle C. Tan said.

Eton Properties said biodiversity loss has a direct impact on the expanding economy of the region, which depends on natural resources and is deemed highly vulnerable to climate change impacts.

“Businesses have relevant knowledge, expertise, and resources that can, directly or indirectly, have positive or negative impacts on biodiversity. Hence, the actions and decisions that this sector makes will be pivotal in our efforts to successfully address biodiversity loss and its accompanying consequences,” ACB Executive Director Theresa Mundita S. Lim said.

Eton Properties is the real estate unit of listed conglomerate LT Group, Inc. The property developer specializes in high-end and mid-income high-rise and horizontal residential developments, office projects, commercial centers, and mixed-use township developments.

Established in 2005, ACB facilitates cooperation and coordination among ASEAN countries and different regional and global dialogue and development partners to intensify regional actions on the conservation and sustainable use of biological diversity. — Revin Mikhael D. Ochave

US Supreme Court rebuffs singer R. Kelly’s challenge to sex abuse conviction

October 9, 2024 | 12:02 am

WASHINGTON — The US Supreme Court declined on Monday to hear imprisoned former R&B superstar R. Kelly’s appeal of his 2022 federal conviction on charges involving child pornography and luring underage girls to have sex with him, one of two cases in which he was found guilty of sex crimes.

The justices turned away Mr. Kelly’s challenge to a lower court’s decision upholding his conviction by a federal jury in Chicago.

Mr. Kelly, now 57, claimed in his Supreme Court filing that prosecutors filed the charges against him in the case after the statute of limitations had expired.

During that trial, several women testified that Mr. Kelly sexually abused them when they were minors. The jury also was shown video of Mr. Kelly molesting his goddaughter, who testified that the abuse began in the 1990s when she was a teenager.

Mr. Kelly, whose full name is Robert Sylvester Kelly, was sentenced to 20 years in prison in the case. He was found guilty of three child pornography counts and three counts of enticing minors for sex, but acquitted of seven other charges that included obstruction of justice, and conspiracy to receive child pornography.

Mr. Kelly in 2021 was convicted in another trial by a jury in New York City’s borough of Brooklyn on all nine charges he faced, including racketeering and eight counts of violating the Mann Act, which forbids transporting people across state lines for prostitution. He was given a 30-year prison sentence in that case, set to largely overlap with his sentence in the Chicago case.

Mr. Kelly is incarcerated at a Butner, North Carolina federal prison and is eligible for release in 2045, according to federal Bureau of Prisons records.

Mr. Kelly filed his Supreme Court appeal after the Chicago-based 7th US Circuit Court of Appeals in April rejected his challenge. — Reuters

Peso drops further due to Middle East conflict

October 9, 2024 | 12:02 am

THE PESO dropped further against the dollar on Tuesday, moving closer to the P57 level, amid the worsening conflict in the Middle East.

The local unit closed at P56.905 per dollar, weakening by eight centavos from its P56.825 finish on Monday, Bankers Association of the Philippines data showed.

This was the peso’s lowest close in almost two months or since its P57.245-per-dollar finish on Aug. 16.

The peso opened Tuesday’s session slightly stronger at P56.80 against the dollar. It climbed to as high as P56.72, while its weakest showing was at P56.98 versus the greenback.

Dollars exchanged rose to $1.897 billion on Tuesday from $1.295 billion on Monday.

The peso weakened on Tuesday due to safe-haven demand for the greenback amid growing tensions in the Middle East, a trader said in a phone interview.

The conflict also led to higher global crude prices and US Treasury yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader sees the peso moving between P56.60 and P57.10 per dollar as the market awaits the release of minutes of the US Federal Reserve’s September policy meeting and US consumer inflation data.

For his part, Mr. Ricafort expects the local unit to range from P56.80 to P57 versus the greenback.

The dollar clung to seven-week highs against major currencies on Tuesday as investors pondered the outlook for US rates after a strong jobs report last week dashed bets for large rate cuts, while escalating tensions in Middle East dented risk sentiment, Reuters reported.

Traders have drastically shifted their monetary easing expectations from the Federal Reserve this year.

Markets are no longer fully pricing in a rate cut in November and are ascribing an 86% chance of a 25-basis-point (bp) reduction, the CME FedWatch tool showed. Just 50 bps of easing is priced in by December, down from more than 70 bps a week earlier.

That has kept the dollar on the front foot and surging to a multi-week high against the euro, sterling and the yen, though the yen clawed back some of the losses on Tuesday as rising geopolitical worries led to safe-haven flows.

The dollar index, which measures the US currency against major rivals, last fetched 102.38, just below the seven-week high of 102.69 it touched on Friday.

Meanwhile, Israel’s military said on Tuesday it had begun ground operations in southwest Lebanon, expanding its incursions to a new zone a year after exchanges of fire began with armed group Hezbollah and amid pleas by the UN for a diplomatic solution.

The regional tensions triggered a year ago by Palestinian armed group Hamas’s attack on southern Israel have spiraled to a string of Israeli operations by land and air over Lebanon and direct attacks by Iran onto Israeli military installations. — Aaron Michael C. Sy with Reuters

Empowering Filipino youth for a resilient future

October 9, 2024 | 12:02 am

ON International Disaster Risk Reduction Day, we turn our attention to a powerful force shaping the Philippines’ resilient future: the youth.

There are 30 million young people aged 10-24 in the Philippines, making up 28% of the total population. This will remain nearly the same by 2055 based on the projection of the Philippine Statistics Authority.

In 2024, the World Risk Index tagged the Philippines as the most disaster-prone country in the world. In general, young people didn’t cause climate change, yet they will inherit a world riddled by its consequences.

While this poses a concern on the potential vulnerability of young people to climate change and disasters, this demographic holds immense potential to drive significant change on the country’s overall resilience. It represents not only the shift in numbers, but it is also a unique opportunity. These young Filipinos are not mere bystanders, but active voices in many platforms where a disaster-free future is central to the conversation. They bring fresh perspectives, innovative ideas, and a deep understanding of local contexts.

The recently concluded UN Summit of the Future committed to empowering young people by cultivating a nurturing environment that allows youth and future generations to fully realize their dreams and ambitions. The youth ought to be both protagonists and beneficiaries in resilience agenda. With access to information and education, the youth are well placed to lead innovation, disaster risk reduction, and local resilience action.

Championing resilience in the context of empowering the next generation is where the Strengthening Institutions and Empowering Localities Against Disasters and Climate Change (SHIELD) Program plays a critical role through the support of the Australian Government.

As the climate and disaster resilience flagship program in the Philippines, SHIELD enables harnessing the collective strength of communities to build resilience against disasters and climate change. Being led by the United Nations Development Program (UNDP) in the Philippines, the program prioritizes inclusivity, integrating gender equality, disability, and social inclusion across all its workstreams, ensuring that the specific needs and perspectives of young people, especially those from marginalized groups, are considered in every resilience-building activity.

Recognizing multi-stakeholder partnerships as core agent of change in this process, SHIELD invests in the unique potential of youth in building climate resilience. The program targets to deliver strong partnership and collaboration platforms in the formation of Sama-Samang mga Samahan para sa Isang Matatag na Bayan (Sambayanihan) — a locally led collaborative effort, where young people could engage with policymakers, marginalized groups, and development partners in the very important decisions and implementation in resilience space. Youth representatives from the Local Youth Development Offices and youth non-government organizations are part of the core working groups that are involved in a series of capacity development and resilience planning and programming activities — creating a community of practice at the local level.

In the provinces of Davao Oriental and Eastern Samar, and the Bangsamoro Autonomous Region in Muslim Mindanao, for instance, youth participation has been crucial in SHIELD’s resilience initiatives. The youth representatives have been actively involved in the program’s wide-ranging workstreams on the ground, including capacity assessments and risk scenario development, which are essential in ensuring that their needs and priorities are reflected in local resilience planning and decision-making process.

It is imperative that we continue to engage with the youth and we treat them not only as a vulnerable group but, more importantly, as allies, change makers, community partners, and key decision-makers in building resilience. Their inclusion ensures that the solutions designed to strengthen local resilience reflect the perspectives of the younger generation, whose futures are directly impacted by today’s climate crisis, racing against time.

In the coming years, the UNDP is committed to working closer with the youth in scaling up data systems, financing for resilience, designing proposals, and establishing policy frameworks and advocacy. The actions we take today will undoubtedly shape the future and generations to come. Inaction is not an option. Through programs like SHIELD, our work goes beyond preparing for disaster today; we are working towards paving the path for a more resilient future for generations to come.

SHIELD is a multi-year partnership covering 11 provinces and two regions in the Philippines that are among the most vulnerable to disasters and climate change impacts. It is implemented by the UNDP Philippines, the consortium partners: Philippine Business for Social Progress, the National Resilience Council, the Consortium of Bangsamoro Civil Society, and the United Nations Human Settlements Program or UN Habitat, together with government partners: the Department of the Interior and Local Government, the Office of the Civil Defense, and the Department of Science and Technology with generous support from the Australian Government.

Dr. Selva Ramachandran is the UNDP Philippines resident representative.

EdFolio eyes more global users on its learning app

October 9, 2024 | 12:02 am

By Aubrey Rose A. Inosante, Reporter

ILIGAN-BASED startup EdFolio, Inc. seeks to attract more overseas buyers on its e-commerce platform, while offering an additional stream of income to educators selling their digital learning materials.

“Last time I checked, 26% of our sign-ups came from teachers in the United States for their classes,” Ursel M. Laureno, chief executive officer and cofounder at EdFolio, told BusinessWorld. “The market outside is that ripe since they have a similar platform.”

EdFolio started at the height of a coronavirus pandemic in 2021. “I realized that needed a platform to share educational resources, she said.

In 2025, the startup will do “version 2.0” of EdFolio, in which it plans to change the payment currency depending on a user’s location, so buyers will know the price in dollars.

Filipino parents based in countries such as Laos and Cambodia have checked out e-books on the website for their homeschooled children.

“If you’re looking for a place where you can see the e-books or the worksheets that you have sitting on your desk and see what value that can bring you, then you can sign up at EdFolio,” she said.

Sellers can sell e-books that may either be downloaded or paid through subscription.

Ms. Laureno, who is also chief operating officer at Bethany Baptist Academy in Iligan City, said she wants the platform to be a source of extra income for teachers.

“I see EdFolio as one of the e-commerce frontlines for hybrid and online learning platforms because it’s not just EdFolio that’s doing the education,” she said. “It’s partnering with every educator in the Philippines.”

One of EdFolio’s new startup e-book publishers managed to get more than P5,000 in sales for a homeschool parent in Laos last month, Ms. Laureno said.

To date, the app has 1, 036 sign-ups for its e-commerce website, 120 of which are authors from small and established publishers.

The e-books on arts and design, Biology, Chemistry, computer literacy, culinary, engineering, English, home economics, and more, are priced from P20 to P400, significantly lower than other outlets, Ms. Laureno said.

In terms of quality, aside from random checks, the company is planning to launch a campaign called “EdFolio Verified Educators” that aims to hire people who will edit or proofread materials uploaded to the website.

“If [a seller] will reach a certain standard, we will give them a badge,” she said. “If an author has that badge, then that author has been vetted by EdFolio.”

The startup is prioritizing EdFolio over its other educational technology product, Skooltek, an artificial intelligence (AI)-integrated school management system solution.

She said EdFolio will launch the facial recognition feature in its Skooltek platform to enter the school premises and replace the use of radio frequency identification.

Job gains by industry (Aug 2024 vs Aug 2023)

October 9, 2024 | 12:01 am

Employment rose by 1.08 million year on year to 49.15 million in August. Wholesale and retail trade led the industry job gainers after adding 1.13 million annually. Read the full story.

Lemon Square baked goods maker taps Berde Renewables to power production facility

October 9, 2024 | 12:01 am

BIG E Food Corp. (BEFC), the company behind Lemon Square snacks, has tapped renewable energy company Berde Renewables, Inc. to install a 2.6-megawatt-peak (MWp) rooftop solar energy system at its production facility in Meycauayan, Bulacan.

“By shifting to solar energy, we’re not only cutting down on emissions but also setting ourselves up for a more efficient and future-ready operation. It’s a reflection of our dedication to both our consumers and the environment,” EJ Vergel De Dios, BEFC’s head of corporate strategy and planning and chief executive officer of Lemon Square Bakery Treats, said in a statement on Tuesday.

The solar photovoltaic energy systems are expected to generate over 3,681.77 megawatt-hours of electricity annually, helping to mitigate carbon emissions equivalent to around 2,500 tons per year.

“This collaboration with Big E Food Corporation is one of several we’ve established this year, demonstrating our commitment to accelerating the energy transition here in the Philippines,” Berde Renewables CEO Patrick Zhu said.

“By helping companies like BEFC make the switch to renewable energy, we’re not only reducing carbon footprints but also providing them with a sustainable solution to manage rising energy costs,” he added.

Last month, Berde Renewables announced that it had entered into a solar power purchase agreement with retail company Magic Group of Companies for the installation of a 729-MWp solar power system at Magic Mall San Carlos.

Berde Renewables is a portfolio company of I Squared Capital, an independent global infrastructure investment manager. It develops, builds, and operates distributed renewable energy projects for commercial and industrial customers. — Sheldeen Joy Talavera

Peru archaeologists find 600-year-old child sacrifice site

October 9, 2024 | 12:01 am

LIMA — In a vacant lot outside the town of Trujillo, in northern Peru, archaeologists have unearthed the remains of nearly four dozen children — all thought to have been ritually sacrificed more than 600 years ago.

“Many of these remains have cuts on the sternum, some on their ribs,” said archaeologist Julio Asencio from the excavation site.

Each child was buried separately, the scientist said. The remains of two adults and nine llamas — thought to be an offering representing their source of food, clothing, and transport — were also found nearby.

They likely belonged to the local Chimu group, which dominated northern Peru from the 700s to the late 1400s, Asencio said.

Historians believe the group may have participated in child sacrifices as an attempt to appease their gods after heavy rains and flooding. They were conquered by the Inca just decades later.

Scientists had previously found another site thought to be a mass sacrifice by the Chimu nearby, of 140 children all with cuts on their sternum and ribs, their hearts believed to have been removed thereafter, alongside hundreds of llamas.

Peru is home to hundreds of archaeological ruins from a number of pre-Hispanic cultures up through the Inca Empire, which stretched from what is now southern Ecuador through central Chile some 500 years ago. — Reuters