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CALAX Silang (Aguinaldo) set for Q3 opening

MPCALA Holdings, Inc., a unit of Metro Pacific Tollways Corp. (MPTC), said the road section connecting Aguinaldo Highway to Silang East interchange of the P35-billion Cavite-Laguna Expressway (CALAX) project is expected to open by the third quarter of the year.

“We’re completing the Subsection 4, that’s from Silang East to Silang (Aguinaldo),” MPCALA Holdings President and General Manager Roberto V. Bontia told BusinessWorld in a recent interview.

“Yan ‘yung segment na that we are expecting na magkakaroon ng malaking traffic kasi (We expect huge traffic on this segment because) it will be an interchange directly coming from Aguinaldo Highway,” he added.

The company holds the concession for CALAX with a 35-year concession period. The project connects Manila–Cavite Expressway (CAVITEX) and South Luzon Expressway (SLEX).

“The Subsection 4, we are expecting to complete that by the third quarter or early fourth quarter of this year. That’s expected to open,” Mr. Bontia noted.

The CALAX project has eight subsections: Kawit to Open Canal (subsection 1), Open Canal to Governor’s Drive (subsection 2), Governor’s Drive to Silang (subsection 3), Silang to Silang East (subsection 4), Silang East to Santa Rosa (subsection 5), and Santa Rosa to Mamplasan (subsections 6, 7, & 8).

Subsections 6 to 8 started operations in 2019 and CALAX Laguna segment interchanges, which are part of the subsections 6 to 8, opened the following year. These interchanges are the Laguna Boulevard Interchange and the Laguna Technopark Interchange.

“‘Yung Cavite portion, ‘yung Subsections 1 to 3, ongoing pa rin ‘yung right-of-way acquisition (The right-of-way acquisition process for the Cavite portion is still ongoing),” Mr. Bontia said.

“But as we speak, there are about six areas where construction is already in progress.”

Last year, CALAX Subsection 5, which connects Silang East to Sta. Rosa-Tagaytay Road Interchange, was inaugurated, extending the expressway’s operating sections from 10 to 14.24 kilometers.

Full completion of the 45-kilometer CALAX project is expected in 2023.

According to the Department of Public Works and Highways, the project is expected to provide efficient transport facilities for the ecozones in Cavite and Laguna.

It is also seen to reduce traffic congestion, particularly in Governor’s Drive, Aguinaldo Highway and Sta. Rosa-Tagaytay Road, and boost the competitiveness of Region IV-A or CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon) as an investment destination.

Once fully operational, the project is expected to cut travel time between the CAVITEX and SLEX to 45 minutes from the current 2.5 hours.

MPCALA Holdings is a subsidiary of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

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. — Arjay L. Balinbin

Sky’s the limit for Thompson after Best Player, MVP award

BARANGAY Ginebra’s Scottie Thompson — PBA IMAGES

AFTER a stellar outing in the recent Philippine Basketball Association (PBA) Governors’ Cup spiked by the Best Player and Finals Most Valuable Player (MVP) accolades, the sky’s the limit for the Barangay Ginebra’s do-it-all young star Scottie Thompson.

“I think we’re just starting to see the start of Scottie’s career. He’s just going to get better from here,” Gin Kings coach Tim Cone said of Mr. Thompson, one of the vital cogs in the squad’s successful drive to its fourth Governors’ Cup plum.

Ably filling in the big shoes of injured ace Stanley Pringle, Mr. Thompson turned in averages of 17.83 points, eight rebounds, 5.5 assists and 1.17 steals in 44 minutes of action per game in helping spark the team’s 4-2 conquest of Meralco.

This makes him a certified contender for the Season MVP honors and to some quarters, the new “face” of Ginebra after Mark Caguioa.

For Mr. Cone, it’s not unlikely for the 28-year-old hard worker to take over the mantle.

“He’s young, he’s just won PBC and MVP of the series. He’s deserving that way,” he said.

“I don’t think anybody in the team is going to begrudge that because he is so well-liked, he works so hard… It’s the same with Mark Caguioa, he’s such a nice guy and his teammates love him,” he added.

The multi-titled Mr. Cone likened Mr. Thompson to one of the great elements of his grand slam run with Alaska in the 1990s: Johnny Abarrientos.

“The things he does for us offensively, defensively, his offensive rebounds, they’re very similar to what Johnny Abarrientos used to do for us. He plays great defense, he’s a great rebounder for a guard and he’s such a great controller of the game and he never gets tired and always hustles,” he noted.

One of the major tactical tweaks that Mr. Cone and his staff did during the conference was “putting the ball to Mr. Scottie’s hands more” to “get Mr. Tenorio off the ball a little bit more and save his legs.”

It worked to perfection.

For Mr. Thompson, the newest feat only heightened his desire to push for more. — Olmin Leyba

Alphaland Southgate’s review plea vs VAT deficiency, penalty denied

THE Court of Tax Appeals (CTA) has denied real estate developer Alphaland Southgate Tower, Inc.’s petition for review of its value-added tax (VAT) deficiency amounting to P20.4 million and a compromise penalty of P50,000.

In a decision dated April 20, the CTA en banc affirmed a court division’s previous ruling denying the petition for lack of jurisdiction.

“It is settled that a final demand letter from the Bureau of Internal Revenue, reiterating to the taxpayer the immediate payment of a tax deficiency assessment previously made, is tantamount to a denial of the taxpayer’s request for reconsideration,” according to a copy of the ruling penned by CTA Associate Justice Marian Ivy F. Reyes-Fajardo.

The court ruled that the Commissioner of Internal Revenue (CIR)’s final assessment was executory, citing the company’s failure to submit documents supporting its request for reinvestigation.

The CIR ordered the petitioner to immediately pay its VAT deficiency.

“The assessment shall become final, this you (petitioner) are barred from disputing further the correctness of the issued assessment and shall therefore be required to pay the deficiency VAT attributable thereto immediately, otherwise, we shall be compelled to initiate remedies provided by law for the collection of the said amount,” the CIR said in its letter.

The petitioner is a company primarily engaged in the real estate business, which includes leasing out properties in Alphaland Southgate Tower in Makati City.

CIR, the respondent, is authorized to collect and assess internal revenue taxes, and fees, and enforce penalties related to these.

Alphaland Southgate argued in its petition for review that the court in division has jurisdiction over its appeal.

It acknowledged that its protest to the CIR’s final letter of demand was not filed as evidence, but maintained that the assessment should be considered void because the company’s accounting clerk who received the notice was not authorized to receive it.

The petitioner stressed that it is not liable for VAT deficiency because its sales of service to a Philippine Economic Zone Authority (PEZA)-registered enterprise in the case should be subject to 0% VAT.

The country’s revenue code provides that if an administrative protest is denied, in whole or in part, by the CIR’s authorized representative, the taxpayer may appeal to the CTA within 30 days from the date of receipt of the decision.

The CTA full court said the company only filed its petition for review on June 5, 2017 which was beyond 30 days from receiving the CIR’s final letter of demand on May 16, 2016.

In a separate concurring opinion, CTA Associate Justice Jean Marie A. Bacorro-Vilenna said the assessment had become final, executory, and demandable even before the company received the final letter of demand.

She noted that the company also did not file an appeal with the court in division within 30 days from receiving the warrant of distraint issued on Jan. 5, 2016.

CTA Associate Rowena Modesto-San Pedro said in a separate opinion that the case should be remanded to the court in division to determine the appropriate VAT deficiency due.

“I disagree with the ponencia that taking cognizance of the present case makes the commencement of the statutory 30-day period depend solely on the will of the taxpayer and place the latter in a position to put off indefinitely and at its convenience the finality of the assessment,” she said.

“Quite the contrary, it is the respondent who put off the finality of the assessment through his issuance of the final decision on disputed assessment substantially reducing the VAT deficiency assessment to P20,386,979.98 thereby revoking his earlier decision.” — John Victor D. Ordoñez

Converge ICT seeks to further cut energy costs

CONVERGE ICT Solutions, Inc. is planning to further reduce its power expenses as part of sustainability efforts as it pursues growth.

“Aside from switching to clean energy, Converge is eyeing to implement a solar hybrid system to further cut down on energy costs, and exploring the viability of electric vehicle integration,” the company said in an e-mailed statement.

The company has switched to 100% clean energy to run its data center in Angeles City, Pampanga.

The facility is owned and operated by Converge’s parent company, ComClark Network and Technologies Corp.

The listed fiber internet service provider recently entered into a supply contract with First Gen subsidiary, Greencore Geothermal, to secure 14.4 megawatts (MW) of geothermal energy for two years (or 7.2 MW per year) until 2024 for the data center.

“The contract was availed under the government’s Retail Competition and Open Access as mandated by the Electric Power Industry Reform Act of 2001 and with Greencore in compliance with the Department of Energy’s Renewable Portfolio Standards,” the company said.

“In 2021, Converge concluded a similar agreement with Lopez Holdings’ First Gen, contracting 48 MW of geothermal energy until 2023 for the company’s headquarters in Pasig, Metro Manila which also houses a data center,” it added.

Dennis Anthony H. Uy, chief executive officer and co-founder of Converge, noted that the company is progressively moving towards the use of renewable energy in its operations.

“Data centers which operate 24/7 require a lot of cooling and thus, consume a lot of energy. This is the reason why we need to ensure that our power requirement comes from renewable sources like geothermal energy so that it will have less impact on the environment,” he said.

“Converge is continuously looking for ways to further reduce its carbon footprint as we have always believed that we need to protect the environment for our business to be sustainable and continue to flourish,” he added.

Converge has budgeted around P26-28 billion for capital expenditures this year, up from last year’s P25 billion, primarily to continue its expansion.

Its net income more than doubled to P7.16 billion in 2021 from P3.39 billion in 2020.

“Converge is on track to reach its adjusted goal of approximately 55% nationwide household coverage by 2023, two years earlier than promised during the initial public offering,” the company said. — Arjay L. Balinbin

Rates of T-bills, bonds may move sideways as central banks tighten

RATES of government securities to be auctioned off this week are expected to move sideways with a slight upward bias on expectations of global monetary tightening.

The Bureau of the Treasury (BTr) will auction off P15 billion in Treasury bills (T-bills) on Monday, or P5 billion each in 91-, 182-, and 364-day securities.

On Tuesday, the BTr will offer P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and eight months.

A trader via Viber said that T-bills would move sideways to higher “given hawkish remarks from [the] Fed (US Federal Reserve).”

Rizal Commercial Banking Corp. Michael L. Ricafort likewise said in a Viber message that T-bills would move sideways to “slightly higher,” amid Fed expectations of greater policy tightening to combat inflation.

A half-point interest rate increase “will be on the table” when the Fed meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year, US Fed Chair Jerome H. Powell said on Thursday in comments that pointed to an aggressive set of actions ahead, Reuters reported.

With inflation running roughly three times the Fed’s 2% target, “it is appropriate to be moving a little more quickly,” Mr. Powell said in a discussion of the global economy at the meetings of the International Monetary Fund.

A Reuters poll two weeks ago showed analysts expect the Fed to make two back-to-back 50-basis-point (bp) interest rate hikes in May and June to bring down runaway inflation.

The Fed’s policy-setting Federal Open Market Committee began to unwind its pandemic-driven easy stance in March when it hiked key rates by 25 bps to tame inflation.

Meanwhile, the trader said the reissued 10-year bonds could fetch an average rate within 6-6.5%.

“The higher forecast is due to [the] BTr’s awarding behavior in last week’s seven-year auction,” the trader said. “Market players are not aggressive on that [10-year bond] space given rate hike expectations.”

The BTr made a full award of the reissued seven-year T-bonds it offered last week at a higher average rate due to inflation fears and hawkish comments from Fed policy makers.

The Treasury raised P35 billion as programmed from the reissued seven-year bonds it auctioned off on Tuesday, with bids reaching P47.336 billion.

The debt papers, which have a remaining life of six years and three months, were awarded at an average rate of 5.779%, up by 17.8 bps from the 5.601% fetched when they were last sold on March 22. The bonds have a coupon rate of 3.75%.

The average rate was also higher than the 5.6836% quoted for the seven-year tenor at the secondary market prior to the auction, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

Mr. Ricafort said some positive leads that could cause rates to decline would be the drop in oil prices, the government’s latest $559-million samurai bond and $2.25-billion global sustainability bond issuances, as well as the seasonal increase in the government’s revenue collections in April due to the filing of income tax returns, as these would reduce the country’s need to borrow for now.

Oil slipped on Friday, posting a weekly loss of nearly 5%, on prospects of weaker global growth, higher interest rates and amid coronavirus disease 19 (COVID-19) lockdowns in China, even as the European Union considers a ban on Russian oil.

Brent crude dropped by $1.68 or 1.6% at $106.65 a barrel, while US crude declined by $1.72 or 1.7% to $102.07.

At the secondary market on Friday, the 91-, 182-, and 364-day securities fetched rates of 1.2466%, 1.5262%, and 1.9169% respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, the 10-year bonds were quoted at 6.0740%.

The government raised P15 billion as planned via T-bills at its auction last week, as total tenders reached P54.12 billion, nearly four times as much as the program.

Broken down, the BTr raised P5 billion as planned via the 91-day instruments as bids reached P26.23 billion. The average rate of the three-month T-bill went up by 2.1 bps to 1.25% from 1.223%.

The government also made a full P5-billion award of the 182-day securities as the offer attracted P15.85 billion in bids. The average rate of the six-month tenor rose by 1.3 bps to 1.568% from the 1.555% fetched at the previous auction.

Lastly, the Treasury borrowed P5 billion as programmed from the 364-day debt papers from P11.954 billion in tenders. The average rate of the one-year paper went up by 2 bps to 1.877% from 1.857% a week earlier.

Meanwhile, the last time the government auctioned off the 10-year bonds on offer on Tuesday was on March 29 where it raised P35 billion as programmed as bids reached P57.915 billion. The tenor fetched an average rate of 6.092%, up by 99.9 bps from the 5.093% fetched when they were last offered on Feb. 8. The bonds carry a coupon rate of 4.875%.

The BTr wants to raise P200 billion from the domestic market in April, or P60 billion through T-bills and P140 billion through T-bonds.

The government borrows from local and external sources to plug a budget deficit capped at 7.7% of gross domestic product this year. — Tobias Jared Tomas with Reuters

NGO seeks to end ban on fish feed ingredient

By Luisa Maria Jacinta C. Jocson

FOOD SECURITY advocacy group Tugon Kabuhayan said the import ban on porcine processed animal protein (PAP) from Italy, imposed during the African Swine Fever (ASF) outbreak, needs to be lifted to keep fish feed prices in check.

PAP, a key raw material in producing aquaculture feed, is safe because its manufacturing in Italy is regulated under European Union rules.

“PAP is made from food-grade meat including bones, skin and blood and falls under the European Union’s Category 3 meat classification, which means they come from disease-free animals,” Tugon Kabuhayan Convenor Asis G. Perez said.

Italy accounts for 70% of the 150,000 metric tons of PAP imports shipped in by the feed industry, he said.

The Department of Agriculture (DA) banned PAP imports this year after the emergence of a confirmed case of ASF in Italy.

Mr. Perez said the blanket ban imposed by the DA on pork products from Italy should be modified to exempt PAP imports, as they pose no threat to the domestic swine industry.

“To make PAP powder, the mixture of meat and other animal parts is processed at 130°C, almost double the 70°C at which the ASF virus is killed. During the feed manufacturing process, PAP is further ‘cooked’ at temperatures reaching 200°C to make floating fish food,” he said.

Domestic manufacturers produce around 1.6 million metric tons of feed for the aquaculture industry, whose output of 800,000 metric tons of fish services around 40% of annual fish consumption, the group said.

The high protein found in PAP compared to other protein sources allows for higher feed conversion and reduces water pollution from aquaculture.

Mr. Perez said that the import ban could raise the price of fish sold in the market.

“The biggest impact of the ban on imported PAP from Italy is the higher cost of aquaculture feeds. Every P1.00 of additional feed cost roughly translates to over P2.00 per kilo of fish because a fish farmer needs two kilos of feed for a fish to reach one kilo,” he said.

PAP contains up to 90% protein, higher than the levels supplied by other protein sources like vegetable or fish meal. Lower protein means higher amounts of feed is needed to grow fish to harvestable size, which leads to increased fish effluent that pollutes the water, Tugon Kabuhayan said.

The group said that the country has been using porcine PAP since 2008 due to the inadequacy of the domestic fish meal supply or processed fish scraps.

“We understand that the swine industry needs to be protected. But a blanket ban on imported PAP from Italy because of a single ASF-infected wild boar isn’t backed by science. And if there’s no strong scientific basis, why make the aquaculture industry and, consequently, fish consumers suffer?” he added.

Sotto makes solid season debut in NBL, weighing next options

ADELAIDE 36ers center Kai Sotto — ADELAIDE 36ERS

KAI Sotto ended his debut season in the Australia National Basketball League (NBL) in style, making a solid mark in the 93-60 win of the Adelaide 36ers over the New Zealand Breakers at the MyState Bank Arena.

The 7-foot-3 Filipino prodigy hacked out 12 points, seven rebounds and four blocks in only 20 minutes of play as the 36ers won three of their last four games despite being out of playoff contention.

Adelaide finished at seventh place with a 10-28 card with Mr. Sotto seeing action in 22 games following a knee issue that sidelined him in the early goings of the roller coaster season.

Mr. Sotto, who will turn 20 next month, averaged decent numbers of 7.52 points on 50% clip and 4.48 rebounds in his international pro league debut.

He is yet to announce whether he will stay with Adelaide in the NBL or throw his hat to the National Basketball Association (NBA) Draft this June for a dream of being the first Filipino homegrown player there.

Mr. Sotto in a previous interview said he’s still weighing his options and will decide on his next plans after his campaign with the 36ers.

Last year, he signed with Adelaide in the NBL as its first Pinoy player after stints with Gilas Pilipinas and Ateneo in the Philippines as well as the NBA G League Ignite in the United States. — John Bryan Ulanday

Helping the planet with sustainable choices

IKEA SORTERA recycling bin

Buy a blue bag and avoid ordering Ikea’s meatballs

IT isn’t fair that beneficial choices like sustainable living aren’t always within reach. Global furnishings giant Ikea, which opened in the Philippines late last year after years of planning, has ways to help reduce the gap between high expenses and more conscious choices.

During a press conference earlier this month, Ikea showed off its sustainability campaign in its Circular Shop, one of its most eco-conscious projects to date. “This is where we give our furniture a second chance,” said Georg Platzer, Store Manager of IKEA Pasay City during the press conference. Returned items, floor samples, end of the range and discontinued items find their way to the Circular Shop, sold for sometimes half of their original prices.

In an interview with BusinessWorld, Mr. Platzer discussed how they make sure that the product is still up to speed. “We have a recovery department, and they’re responsible for quality in our store. They check every single screw to make sure that the quality and the durability are the same.”

Ikea presented furniture where pieces can be supplemented with modules as needed, instead of being completely replaced. For example, there’s the Pahl desk, an adjustable table that helps avoid the cost and hassle of buying a new desk as your child grows.

As for putting caps on consumption, pressure compensating aerators are standard across the whole Ikea range of taps and showers. This reduces the amount of water coming out by up to 50% but keeps the flow at the desired level. LED light bulbs are also standard across all Ikea products. Those use up to 85% less energy — this makes them planet friendly — and they last 20 times longer than incandescent bulbs.

Bamboo is another sustainable raw material used in Ikea products. Its strength and stability provide possibilities for construction with thinner elements and boards, resulting in reduced use of material. This saves natural resources and increases savings during transport. This is a key element in how sustainably they run their stores. Mr. Platzer discussed using LED bulbs in the store, as well as using the water-saving taps. But then, a large part of their carbon emissions come from delivering the goods to customers. The fact that Ikea sells its furniture for assembly is a large element in its sustainability efforts. “Instead of getting two chairs on one pallet, you get maybe 10 chairs in one pallet,” said Mr. Platzer. “You can utilize your trucks, your containers for shipping, in a much, much better way.”

On the subject of reducing carbon footprints due to less carbon emissions from transporting goods to and from nearer places, buying local is often best. Mr. Platzer discussed the subject of getting suppliers from the Philippines. In a previous interview, he said that the store sources its plants and a lot of its food from local sources. On furnishing and its requisite materials, he said, “We’re still looking for a possible partnership. The challenge is that we need suppliers who can supply the entire world. “This is a huge scope, of course, and a massive volume of supply is needed,” he said. “As with any other country where we have started retailing, it’s just a matter of time when we will also have supply from the Philippines.”

Meanwhile, Mr. Platzer gave two tips to reduce your own carbon footprint when shopping at Ikea. First, “Buy a blue bag from Ikea, which you can reuse anytime you come back.” The second tip is ordering the plant-based balls from the restaurant, instead of the meatballs. “They’re producing only 9% of the CO2 emissions compared to the meatballs.” —  Joseph L. Garcia

Cerberus deal on Hanjin seen to strengthen US-PHL alliance

FINANCE Secretary Carlos G. Dominguez III described the acquisition by US private equity firm Cerberus Capital Management of the former Hanjin Heavy Industries and Construction (HHIC-Phil) shipyard in Subic Bay last Friday as a “win-win.”

The acquisition is expected to create more jobs, stimulate the economy, and serve both military and private sector needs, Mr. Dominguez said in an e-mailed statement.

Cerberus acquired the shipyard for $300 million, or P15.7 billion, Reuters reported earlier. HHIC-Phil filed for bankruptcy in 2019.

“With this development beneficial to all stakeholders, we look forward to a robust shipbuilding and ship repair facility to serve not only our military and coast guard requirements, but also the requirements of the private sector,” Mr. Dominguez was quoted as saying at the reception on Friday in Washington, DC.

Many former employees of the Hanjin shipyard would be carried over to the new management, he noted.

The Philippine Navy would also get a naval base, “with an ideal harbor for its rapidly expanding fleet facing the West Philippine Sea,” he added.

“It will help people get jobs and those that lost their jobs previously can have them back.” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

“Overall, this particular takeover is a great thing for job generation.”

The Philippine Navy will occupy the northern yard, according to a Government Service Insurance Service Bid Bulletin.

Mr. Dominguez also said that the takeover would allow five major Philippine banks to profit from written-off loans with HHIC-Phil.

When HHIC-Phil filed for corporate rehabilitation in 2019 with an Olongapo court, it left $412 million in outstanding loans with BDO Unibank, Inc., Metropolitan Bank & Trust Co., Land Bank of the Philippines, Bank of the Philippine Islands, and Rizal Commercial Banking Corp.

HHIC-Phil owed Korean lenders another $900 million.

Foreign Affairs Secretary Teodoro L. Locsin, Jr., who attended the reception, called the deal the “biggest public-private partnership in the 75-year history of Philippine-US relations.”

Philippine Ambassador to the US Jose Manual G. Romualdez, who hosted the turnover reception, said that he is “confident that with this collaboration with the United States, we will have a much stronger alliance founded on deeper friendship and respect.” — Tobias Jared Tomas

Rules for rabbit slaughter, inspection issued

REUTERS

THE Department of Agriculture (DA) said it has set a standard for the humane and hygienic slaughter of rabbits for human consumption.

“There is a need to ensure the hygienic slaughtering of rabbits to safeguard the health of the consuming public from zoonoses and other hazards including the development of standards for hygienic and humane slaughtering of rabbits and inspection,” the DA said in an administrative order.

According to the order, rabbits to be slaughtered need to be sourced from farms certified for good animal husbandry practice (GAHP).

Meat inspection will be conducted in the slaughterhouse premises by authorized National Meat Inspection Service (NMIS) or local government unit (LGU) meat inspectors.

The documentary requirements include veterinary health certificates and shipping permits.

“Only healthy rabbits which are free from any animal diseases, veterinary drug residues, hormones, growth promotants, heavy metals and pesticides and other physical biological and chemical hazards or contaminants shall be allowed to be slaughtered for food,” according to the order.

Rabbits awaiting slaughter must also be handled in cruelty-free conditions, the department said. — Luisa Maria Jacinta C. Jocson

UAAP women’s volleyball tournament will start on May 5

THE University Athletic Association of the Philippines (UAAP) women’s volleyball tournament will be back after a long wait starting on May 5 and it could be staged under a more relaxed setup.

UAAP president Nonong Calanog of host La Salle said the league may transition to a closed-circuit environment after the ongoing men’s basketball tilt following a discussion with the Commission on Higher Education (CHEd).

“We actually may consider going to a closed-circuit situation going into the volleyball tournament,” said Mr. Calanog in a briefing also attended by executive director Atty. Rebo Saguisag and CHEd chairman Popoy de Vera.

With the coronavirus disease 2019 (COVID-19) situation in the country now under a relaxed Alert Level 1, CHEd has allowed the conduct of collegiate sports events under more lenient setups, though it is still leaving the decision on the respective leagues.

“We’re now under Alert Level I. You can dispense the bubble and put other systems in place for the safety of the athletes. I leave that to the UAAP to decide,” said Mr. De Vera, reiterating the previous guidelines made were in consideration of Alert Level II situation then.

The UAAP for its part has opted to stay as is under a bubble setting for the men’s basketball tournament until its completion after making it safe and intact since the opening last March 26.

“Just as important as starting, it is the finishing. So far, with our fingers crossed, we have zero incidents of infections,” said Mr. Saguisag as the men’s hoops event heads into the tailend of the second round.

As for the volleyball that served its last event before the pandemic hit the world in 2020, the UAAP will decide the final setup and its full schedule after a board meeting this week. — John Bryan Ulanday

Loan demand to grow this quarter — BSP survey

BW FILE PHOTO

BANKS expect both business and consumer loans to expand in the April to June period backed by the economy’s gradual recovery as mobility restrictions are relaxed.

The latest Senior Bank Loan Officers’ Survey released by the Bangko Sentral ng Pilipinas (BSP) late Thursday showed half of respondent banks see growing demand for business loans, based on the modal approach.

“Banks’ expectations of an increase in loan demand from both businesses and households is consistent with optimistic business and consumer sentiment for the next quarter as easing coronavirus disease 2019 (COVID-19) restrictions drove the recovery in mobility and production activities,” the BSP said.

Based on the diffusion index approach, lenders expect business loans to expand as firms’ economic outlook improved, as well as the rising inventory and accounts receivable financing needs for borrowers.

Respondent banks said there was a net rise in credit demand from top corporations, large middle-market firms, as well as small businesses in the January to March period.

Meanwhile, the anticipated rise in retail borrowings in the second quarter is attributed to higher consumption, more attractive financing offerings by banks, lower interest rates, and higher housing investments.

Higher loan demand from households was also observed by banks in the January to March period, specifically in housing loans, credit card, auto loans, and salary loans.

In terms of commercial real estate loans, lenders expect demand to grow in the second quarter on customers’ positive economic prospects, increased inventory financing requirements, and lower customers’ internally generated funds.

Meanwhile, the respondent banks expect to tighten their credit standards for commercial real estate loans in the April to June period.

In the previous quarter, credit standards for commercial real estate saw net tightening, based on the diffusion index. This was reflected through wider loan margins, reduced credit line sizes, stricter collateral requirements and loan covenants, increase in use of interest rate floors, and shortened loan maturities.

For the April to June period, bank respondents said they also anticipate an increase in housing loan demand. Banks expect demand to be fueled by higher housing investment and household consumption as well as financial firms’ more attractive conditions for borrowers.

Based on the diffusion index approach, banks expect net easing in credit standards for housing loans. This will be backed by the improvement in borrowers’ profile, more optimistic economic growth outlook, and increased risk tolerance, lenders said.

In the previous quarter, banks reported a net easing for housing loan standards.

The latest central bank data showed bank lending expanded by 8.8% in February, faster than the 8.4% growth in January. This was backed by the expansion in both business and consumer credit. — Luz Wendy T. Noble

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