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BSP to tweak rules on large exposures

DMITRY BERDNYK-UNSPLASH

THE PHILIPPINE central bank is proposing to amend the guidelines on large exposures for big banks and their subsidiaries, in an effort to improve credit concentration risk management.

The Bangko Sentral ng Pilipinas’ (BSP) proposed circular also outlines the regulatory reporting requirements for banks under the large exposures framework to ensure that risks will be properly monitored.

“BSP-supervised financial institutions (BSFIs) are expected to properly and accurately identify, measure, monitor, and control large exposures across books and operations in order to protect BSFIs’ solvency from maximum losses resulting in sudden counterparty failure,” the draft circular posted on the BSP website stated.

Under the proposed rules, an exposure is considered a large exposure if it is equal to or higher than 10% of a bank’s eligible capital.

“Large exposures shall refer to exposures to a counterparty or a group of connected counterparties equal to or greater than 10% of covered banks/quasi banks’ Tier 1 capital,” the rules read.

This is a change from the previous definition of large exposure which was 5% of a lender’s qualifying capital.

Tier 1 capital is defined as the core capital of a lender, which includes its disclosed reserves and equity capital. Meanwhile, the qualifying capital is part of Tier 2 which is a supplementary capital for banks.

The framework will be applicable for universal and commercial banks as well as their subsidiary lenders and quasi-banks.    

The large exposure framework for universal banks and their subsidiaries will be implemented by Jan. 1, 2024, based on the transitory provision of the circular.

Stakeholders are given until April 29 to submit feedback on the draft regulation to the BSP.

The circular also set the criteria in assessing the economic interdependence of counterparties that have borrowings with banks to ascertain large exposure.

The BSP said banks should monitor whether 50% or more of a counterparty’s annual gross receipt or gross expenditure came from transactions with the other party. 

Lenders should also look into whether the financial difficulties, insolvency, or default of one counterparty could in turn spill over to other counterparties in terms of repayments of liabilities.

The central bank said lenders should also assess the funding source of counterparties and if there are no alternative provider of funds that could support the counterparties in case of a default from the major funding source.

“In cases where the criteria do not automatically imply an economic dependence that results in two or more counterparties being connected, covered banks shall provide evidence to the BSP that a counterparty which is economically dependent to another, can still pay its liabilities within a reasonable period of time even if the latter’s financial condition weakens,” the BSP said.

Banks are expected to ensure they have the monitoring and reporting requirements related to their large exposures at any given time it will be verified by the BSP. These large exposures will be reported on a semi-annual basis or every June 30 or Dec. 31 of each year.

The BSP has stressed the banking system remained stable and well-capitalized despite the deterioration in banks’ asset quality amid the pandemic. It attributed this to the regulatory reforms that were implemented following the Asian Financial Crisis and the Global Financial Crisis.  — Luz Wendy T. Noble

Banks need to keep close eye on play-to-earn game transactions, AMLC says

A customer plays a game at a computer shop in Quezon City, Sept. 2, 2020. — PHILIPPINE STAR/ MICHAEL VARCAS

THE ANTI-MONEY Laundering Council (AMLC) wants financial institutions to ensure customer due diligence, especially those that serve as payment channels for play-to-earn games such as Axie Infinity.

While Axie Infinity itself is not under the supervision of the Bangko Sentral ng Pilipinas (BSP) and not covered by the “dirty money” watchdog, AMLC Executive Director Mel Georgie B. Racela stressed that financial institutions are involved when players convert in-game tokens into fiat currency.

In games such as Axie Infinity, players receive cryptocurrency in exchange for playing the game. Axie Infinity players earn tokens known as smooth love potion (SLP).

“The payment channels used for the SLP tokens used in the game may include banks and electronic money issuers (EMIs). It must be remembered that banks and EMIs are covered persons and are, thus, required to conduct customer due diligence, keep records, and file covered and suspicious transaction reports (STRs),” Mr. Racela said in a Viber message.

“These covered persons, as payment and settlement facilitators, should closely monitor funds that pass through them (through the purchase or sale of such tokens) for possible links to dirty money and promptly file the corresponding STRs when appropriate,” he added.

Around $600 million worth of cryptocurrency linked to Axie Infinity was stolen from the Ronin Network, a blockchain network that allows users to transfer crypto in the game. It is said to be one of the largest cryptocurrency heists on record.

The US Federal Bureau of Investigation last week said their findings showed that Lazarus Group and APT38, both associated with North Korea, were behind the cybercrime. The Lazarus Group was also involved in hacking the Bangladesh central bank in 2016.

Meanwhile, Swarup Gupta, an industry manager at the Economist Intelligence Unit said the cyberattack showed how there are still gaps in ensuring decentralization for such platforms.

“The small number of validator nodes for the Ethereum sidechain, Ronin, and the even smaller number needed to approve a transaction, shows how such platforms fail to deliver the levels of decentralization that are necessary to ensure sufficient levels of cybersecurity,” Mr. Gupta said in an e-mail.

Sky Mavis, which operates Axie Infinity, earlier said that about 35% of the game’s traffic comes from the Philippines. The company said it raised $150 million in funds which will be used to reimburse players that were affected by the heist.

Despite regulators issuing warnings on risks related to cryptocurrency, Mr. Gupta said gamers have remained “largely undeterred.”

He earlier said the interest for play-to-earn games rose as Filipinos sought new sources of income amid the pandemic.

“Authorities should reach out to gaming guilds in the country and coordinate with them to provide education about the risks inherent with play-to-earn gaming activity,” Mr. Gupta said.

“They should also consider imposing restrictions on the transactions of gamers at the point of conversion to fiat currency since this is an area that is within the government’s jurisdiction,” he added.

BSP Governor Benjamin E. Diokno previously said they are continuously monitoring crypto-related activities that are used in online games. He said they are discussing with other regulators on the appropriate approach for Axie Infinity and other gaming platforms.

The Philippines is under increased monitoring as it was included in the “gray list” of the Financial Action Task Force in June 2021. It needs to prove it has implemented tighter restriction measures to prevent dirty money and terrorism financing activities.

The government hopes to exit the gray list on or before January 2023. — Luz Wendy T. Noble

Faster rollout of booster shots urged amid new coronavirus variants

A woman gets a booster shot at an elementary school in Marikina City, Nov. 25, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

By Revin Mikhael D. Ochave
and Luz Wendy T. Noble, Reporters

THE DISTRIBUTION of booster doses of coronavirus disease 2019 (COVID-19) vaccines should be accelerated in order to prevent new variants from driving another surge that may derail economic recovery, experts said.

Steven T. Cua, Philippine Amalgamated Supermarkets Association president, told BusinessWorld via mobile phone message last week that the group’s member companies and their employees are being encouraged to get their COVID-19 booster shots as soon as possible.

“I am heavily campaigning to all our employees to get their booster shots. With P2 trillion in loans to partly address this pandemic with 27 million doses of vaccine about to expire and with such a small fraction of the population availing of booster shots, this can hardly be described as a situation (that has been) well handled,” Mr. Cua said.   

Previous surges have been driven by COVID-19 variants, such as Delta and Omicron. New recombinant variants such as Omicron XE are being blamed for recent surges in other countries.

Mr. Cua said these new variants are a threat since they may hurt the retail sector’s recovery from the pandemic.    

“(New COVID-19 variants) most definitely will (be a threat). The road to recovery has been sidetracked time and again. The solution is right before us for the taking but the government and citizenry are failing to comprehend what it takes to move ourselves forward,” Mr. Cua said.   

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa noted how previous surges necessitated the imposition of tighter restrictions. He said another COVID-19 surge could dampen both consumer and business sentiment and eliminate the gains from the economy’s gradual reopening.

“The economic recovery will be best maximized with lower levels of restrictions (as this allows the free flow of people and commerce) while virus mitigation also helps bolster business and consumer sentiment,” Mr. Mapa said in an e-mail.

The government is targeting 7-9% economic growth this year, after the 5.7% expansion in 2021.

The ASEAN+3 Macroeconomic Research Office (AMRO) last week said the biggest threat to the Philippines’ recovery is a possible resurgence in COVID-19 infections. Health experts have recently warned of a surge in COVID-19 cases after the May elections, citing the “waning immunity” of many vaccinated Filipinos who have not received a booster shot.

The Department of Health (DoH) has said only 11.8 million out of 45 million Filipinos who are eligible for booster shots have received the additional COVID-19 vaccine dose.

Philippine Retailers Association (PRA) President Rosemarie B. Ong said via mobile phone message that the government should urge people to take their booster shots as soon as possible and to continue to adhere to health protocols.

“Just like any variant, once (these variants) spread, they will be a threat. However, let us remain hopeful that this will not reach our country. Let’s push for more people to avail of the booster shots,” Ms. Ong said.

Mr. Cua said businesses must start “requiring their employees to get their booster shots.”

“The solution is still within our reach. It isn’t too late yet but we (need to) get our act together on this,” he added.   

Asian Institute of Management economist John Paolo R. Rivera said the government should also speed up the vaccination rollout while COVID-19 infections are currently low.

“The new surge is always possible given new variants. We should have learned from the past two years that it is best to be preventive than reactive,” Mr. Rivera said in a Viber message.

“It’s a choice of getting vaccinated/boosted with compliance with minimum health standards or procrastinate vaccination with a relaxed safety protocol at the expense of the economy, at the expense of jobs,” he added.

The DoH data also showed 65.9 million Filipinos have completed their vaccine doses as of March 30. This was below the government’s target to fully inoculate 77 million Filipinos by the end of March.

The Food and Drug Administration last week approved the second booster dose of the COVID-19 vaccine for the elderly, immunocompromised individuals, and frontline health workers.

“This second booster dose shall be given at least four months after the first booster. For moderately and severely immunocompromised patients, the second booster could be given earlier subject to the attending physician’s assessment,” the Health department said in a statement.

Seeing Green

(L-R): PATEK 5270P, PATEK 7130-R and PATEK 4910

GREEN represents growth and new perspectives, and those seem to be reflected in pieces by Patek Philippe from its exhibition at Watches & Wonders 2022. The annual watch show in Geneva, which ended earlier this month, was relaunched after a two-year hiatus brought on by the coronavirus disease 2019 (COVID-19) pandemic. BusinessWorld was shown the storied watchmaker’s pieces during an online presentation late last month.

For 2022, the Ref. 5205R-011 — first launched in 2010 with two white gold versions — sports a refined olive-green dial, enlivened by a sunburst motif and by a black gradient around the rim. As with its older iterations, it displays day/date/month apertures arranged along the arc of a circle. The case is distinguished by its concave bezel, its hollowed flanks, and its skeletonized lugs. This refined architecture is entirely hand-polished by Patek Philippe’s artisans. A transparent sapphire crystal case back allows one to admire the watch movement — the self-winding Caliber 324 S QA LU 24H — equipped with the patented Patek Philippe Annual calendar mechanism requiring only one manual adjustment per year, at the end of the month of February. The website lists this piece at about P2.9 million.

It really looks like 1999 from the eyes of Ref. 4910/1200A-011 Twenty~4. The Twenty~4 was Patek Philippe’s first exclusively feminine collection. This particular piece sees the sunburst dial with an olive-green face, surrounded by 36 diamonds. This is powered by a Caliber E-15 quartz movement and is rendered in stainless steel. The new olive-green dial contrasts with the applied 12 and 6 o’clock numerals, the applied trapeze-shaped hour markers, and the rounded baton-style hands. The website lists this piece at P812,500.

Another ladies’ watch gets another touch-up: e Ref. 7130R-014 Ladies’ World Time, first launched in 2011. This watch allows one to keep track of time in all of the 24 time zones, thanks to the self-winding Caliber 240 HU. The movement was made ultra-thin to help keep the case extremely slim (with a height of 8.83 mm). Thanks to its city disk and its 24-hour disk (divided into day/night zones distinguished by their color and by the sun/moon symbols), this caliber simultaneously and permanently displays the time in all 24 time zones. This new edition sees it in rose gold, with a hand-guilloched basketweave motif in (of course) olive green. This green motif provides a background for the 62 diamonds on its bezel. A matching strap in the same color allows 27 diamonds on the prong buckle to shine as well, showing true elegance. The website lists this piece at P3.06 million.

Finally, the green line is rounded out by the magnificent Ref. 5270P-014 Chronograph, rendered in platinum. This piece, part of the brand’s Grand Complications, comes with a perpetual calendar. The perpetual calendar display sees the date indicated by a hand and a moon phase at 6 o’clock, as well as a twin day/month aperture at 12 o’clock, complemented by two round apertures for the day/night indication and the leap-year cycle. This is shown on a lacquered green dial, black-gradient rim, and gold applied hour markers. This is powered by the Caliber CH 29-535 PS Q, allowing it to show an Instantaneous 30-minute counter, and a seconds subdial. This piece is pegged on the website for P11.19 million.

In the Philippine, Patek Philippe is sold by Lucerne. —  Joseph L. Garcia

‘Jeweler of kings and the king of jewelers’

(L-R): CARTIER Tank Red and CARTIER Ballon

JEWELRY brand Cartier — “the jeweler of kings and the king of jewelers” according to King Edward VII, who showered his wife, Alexandra of Denmark, and many other favored women with items from the jeweler — was no slump at Geneva’s Watches & Wonders 2022, showing how they remade their (ostensibly) utilitarian watches into flamboyant status symbols. These were shown in an online presentation earlier this month.

We start off with a bigger Ballon Bleu de Cartier, another watch favored by royalty (the Duchess of Cambridge has been seen wearing one, and quite often), in a version in rose gold. This one is surrounded by 21 brilliant-cut diamonds, set with a sapphire cabochon on its crown. The mechanical movement has automatic winding, and boasts a thickness of 9.96mm, measuring around 33mm in diameter.

Meanwhile, the new versions of the stylish Panthère de Cartier (first launched in 1983) are in rose gold, yellow gold and steel; with dials in golden plum, midnight blue, and black. The Santos de Cartier, once made for aviators, shows a new masculinity with blue on its bracelet and bezel, reflecting perfectly the blue numerals within.

Finally, arguably the company’s most famous watch, the Tank (named so after treads on tanks during the First World War; and worn by icons such as Jackie O and Diana, Princess of Wales), shows off its talons with a red and gray edition. The classic hour marks from one to 12 have been pared down to just four.

Appearing monochrome at first glance, the Tank Louis Cartier watch, depending on the light and the way you view it, reveals different looks according to how the light hits it. To achieve this effect, Cartier’s watchmaking craftsmen used — for the first time at Cartier — an innovative electrochemical engraving technique that allows for very high-precision markings. These almost invisible markings, carried out in different directions, form a group of sections and areas which recreate the graphic pattern featured on the dial of a Cartier Must watch from the 1980s. The techniques used for coloring differ: lacquer for the red dial and a galvanized finish for the grey dial. The dials are then enhanced with a glossy, multi-layered decal that accentuates the Roman numerals.

Another makeover sees the Tank Must (a variation on the tank), in stark plain black, in contrast to its flamboyant scarlet sister.

In the Philippines, Cartier is exclusively distributed by Stores Specialists, Inc., and has boutiques at Greenbelt 4, Shangri-La Plaza, and Solaire Resort & Casino. —  JLG

Style (04/18/22)

UNIQLO Wireless Bra

Uniqlo releases wireless bra collection

JAPANESE Global Retailer Uniqlo has launched a new Innerwear collection of wireless bras for Spring/Summer 2022. There are three kinds of Women Wireless Bras — Active Square Neck, 3D Hold, and Relax — made to fit the different needs of every woman, be it in any activity. The Active Square Neck has a flattering design and is very breathable, the 3D Hold stretches to perfectly fit each shape with comfort, and the Relax gives women a feeling of liberation. The Women Wireless Bra (3D Hold, P1,290), is great for everyday wear as its seamlessness makes it invisible under clothes. Its improved cup design also makes it more comfortable for every size and shape. The 3D Hold feature supports while always staying in place, making it light to wear. Meanwhile, made with built-in cups, the Women Wireless Bra (Relax, P1,290) allows the wearer to feel as light and comfortable as possible. Its natural and secure fit and AIRism fabric allows it to be worn for both relaxation and activities. For more information, visit the Uniqlo Wireless Bra Collection online.

Rustan’s goes relaxed with Lady Rustan collections

RUSTAN’s in-house brands are working to beat the summer heat in relaxed style.  Featuring simple shapes and refreshing colors, Lady Rustan’s SS22 collection evokes a much-needed calming effect. Tie pants and work blouses and skirts in uplifting citrus shades of lemon, mandarin, and lime exude an air of newness and positivity. Relaxed basics in dusty blues and rose pinks get the wearer in the mood for a soothing weekend. And no Lady Rustan collection is complete without some polished and refined sets in creamy whites, nudes, and stone and wheat-colored hues. All designs are made from breathable cool linens and cotton rayon blends that are meant to carry you through the tropical summer and beyond. Meanwhile, the new SS22 collection of Luna — a sleepwear and lounge brand featuring home garments and pajamas that wearers wouldn’t mind entertaining guests in — is all about comfortable elegance is vibrant and designed to keep the wearer cozy, light, and fresh from day to night. Think airy, loose silhouettes in soft and romantic hues. The SS22 collection is imbued with subtle style touches: a flourish of unexpected ruffle, a statement print in “artistic tile,” or a fabric in georgette or satin carefully selected for its dreamy softness. Lady Rustan’s and Luna are exclusively available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Alabang, Rustan’s Gateway, Rustan’s Cebu and Rustans.com.

Out of town style from Lotus’ SS22 Collection

THE SUN is out and revenge travel is a thing. Check out Lotus Resort Wear’s new SS22 collection for picture-perfect contemporary, every day and beach wear made for the Philippines’ tropical weather. Inspired by a love for the ocean, sand, and sky, it features playful apparel that seamlessly transitions from day to evening. Lotus’ SS22 collection features playsuits, sundresses, cover-ups, and coordinates that are easy to pack. Sexy halter tie-neck dresses, robe cover-ups adorned in tassels and fun trims, and bold, tropical floral prints are just some of the brand’s highlights this season, all in shades of mango, sunset, and deep ocean blue. Lotus is exclusively available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Alabang, Rustan’s Gateway, Rustan’s Cebu and Rustans.com.

Louis Vuitton, Dior sales jump, defying war and China gloom

PHOTOS FROM UNSPLASH

LVMH posted strong revenue growth as the world’s largest seller of luxury goods defied disruptions from the war in Ukraine and the resurgence of coronavirus disease 2019 (COVID-19) in China, a potential harbinger for the rest of the industry.

First-quarter sales advanced 23% on an organic basis to €18 billion ($19.5 billion), led by LVMH’s biggest unit, fashion and leather goods, the Paris-based company said late Tuesday last week. Analysts had expected a gain of 17%.

Led by billionaire founder Bernard Arnault, LVMH is the first European luxury-goods maker to publish revenue for the period. The owner of Louis Vuitton and Dior was buoyed by resilient demand in the US and Europe.

“The stellar 1Q highlights their geographical and business reach and lack of reliance on any one group, considering the disruption to current trading in China,” wrote Swetha Ramachandran, who manages GAM’s Luxury Brand Equity Fund, in response to a Bloomberg query.

The stock rose as much as 1.8% in early Paris trading, trimming its decline this year to 12%. LVMH has a market value of almost €322 billion ($348 billion).

LVMH’s organic revenue in the US and Europe grew at 26% and 45%, respectively, in the quarter. That compares with an 8% gain for Asia, excluding Japan. The US, meanwhile, generated about a quarter of the company’s revenue.

Revenue at LVMH’s fashion and leather goods unit soared 30%, beating analysts’ forecast for a gain of 23%.

CHINA EFFECT
Still, the company said it’s currently seeing a negative impact on demand for luxury products due to lockdowns in China. On a call last Tuesday, Chief Financial Officer Jean-Jacques Guiony told analysts he’s confident about medium to long-term demand in China once the situation gets back to normal.

“Investors are digesting the very strong 1Q performance, but also the uncertain outlook for China,” Bernstein analyst Luca Solca said by e-mail.

The wine and spirits unit was the only division not to grow at double digits due to supply constraints, notably for its Hennessy cognac, where volume decreased 18% during the period. LVMH partially offset the drop in volume with price increases, said Chris Hollis, who oversees investor relations, during the call. Hollis said the first quarter tends to be volatile and a less important period following the holiday shopping season.

The luxury industry has been relying on price increases to offset inflation, and Mr. Guiony said most LVMH brands have increased prices in “a meaningful way” during the period.

LVMH closed its stores in Russia on March 6 following the invasion of Ukraine, a conflict that could dent consumers’ “feel-good factor” when it comes to luxury purchases, according to Telsey Advisory Group. Russian nationals are estimated to account for less than 1.5% of LVMH’s sales, according to Morgan Stanley. — Bloomberg

Philippines bags multiple awards in the 19th Asian Film Fest

FACEBOOK.COM/FDCP.PH

THE PHILIPPINES came out of the 19th Asian Film Festival with a slew of awards. Film director Brillante Mendoza received a lifetime achievement award, actors Vince Rillon and Christian Bables were jointly named Best Actor, while Erik Matti’s On the Job: The Missing 8 bagged the award for Best Film at the festival awarding ceremony held on April 12 in Rome, Italy.

Mr. Mendoza received the Lifetime Achievement Award, conferred by the Roma Lazio Film Commission.

“Our congratulations to our dear direk Brillante,” Film Development Council of the Philippines (FDCP) Chairperson and CEO Mary Liza Diño-Seguerra said in a statement. “The Lifetime Achievement Award from the Asian Film Festival, a prestigious international film festival known for showcasing auteur cinema from Southeast Asian countries, is a significant achievement not just for direk Brillante Mendoza as a filmmaker, but also for the Philippine Cinema. His valuable contributions through his films have helped the Philippines gain traction in the international scene.”

Mr. Mendoza has directed award-winning films including Kinatay (2009), Lola (2009), Captive (2012), and Ma’ Rosa (2016) which received international accolades and were nominated in film festivals such as the Cannes Film Festival, Venice International Film Festival, and Berlin International Film Festival.

His films Resbak and Gensan Punch are both included in this year’s Asian Film Festival.

Vince Rillon won the Best Actor award for his work in Resbak. In the film, Mr. Rillion plays a young thief avenging himself against a crime syndicate.

In its official Facebook page, the Asian Film Festival’s award citation reads: “Vince Rillon has managed to play the difficult role of a boy who has to survive in an environment dominated by violence, corruption, and continuous prevarication.”

Sharing the award for Best Actor with Mr. Rillon is Christian Bables for his work in Jun Robles Lana’s film, Big Night!

The award citation reads: “Christian Bables has been extraordinary in interpreting the character of Dharna, a gay beautician whose name is mistakenly included in the checklist in the war on drugs. Dharna will have to prove his innocence in the flash of a night. Mr. Bables, who with his comic interpretation even when the situation is dramatic, makes the character lovable in the eyes of the beholder, for his sensitivity and desire for justice towards people oppressed.”

Mr. Bables previously won Best Actor at the 2021 Metro Manila Film Festival (MMFF) for the same film, which also won Best Picture at the MMFF.

In his acceptance speech on video, Mr. Bables restated what he expressed during his MMFF acceptance speech, “I may find it hard to express my thoughts and opinions through words. But please, let me fight for you, and with you through my art.”

Meanwhile, Erik Matti’s On the Job: The Missing 8 bagged the award for Best Film.

“I am just happy that the film gets to be seen all over the world, little by little, with all these festivals picking it up and showing it in their own cities, in their own regions, and in their own territories,” Mr. Matti said in his acceptance speech on video. Earlier, actor John Arcilla won the Volpi Cup for Best Actor at the 78th Venice International Film Festival for his work in On the Job: The Missing 8.

The 19th Asian Film Festival was held from April 7 to 13 at the Farnese Arthouse in Rome. It showcased 30 feature films from China, South Korea, the Philippines, Japan, Hong Kong, Singapore, Taiwan, and Thailand. Daniel Palacio’s The Brokers also participated in the film festival. — Michelle Anne P. Soliman

NLEX seeks TRB go signal for C3-Anda Circle expressway project

NLEX Corp. is awaiting approval from the Toll Regulatory Board (TRB) for the implementation of the first section of the proposed P92-billion NLEX-CAVITEX Port Expressway Link project.

“On Section 1, the Circumferential Road 3 (C3) to Anda Circle section, we are trying to address the questions that the TRB has in relation to the legal structure on how it will be implemented,” NLEX Corp. President and General Manager J. Luigi L. Bautista told BusinessWorld in a recent interview.

“Hopefully we can get approval from the TRB, and then we can already start implementing it,” he added.

The 15-kilometer (km) NLEX-Cavitex Port Expressway Link project is originally a joint unsolicited proposal with the Manila-Cavite Expressway (CAVITEX) submitted to the Department of Public Works and Highways (DPWH) in 2019 to extend the North Luzon Expressway (NLEX).

The project has three sections: the 5.7-km C3 Road to Anda Circle, the 4.8-km Connection from CAVITEX to Buendia Avenue, and the 4.6-km Buendia Avenue to Anda Circle.

“Naisip namin na hinog na ‘yung first section (We thought that the first section was already ripe for implementation), so we went to the TRB to tell them that we are ready to implement this project, but it’s still part of the entire unsolicited proposal,” Mr. Bautista said.

The NLEX-CAVITEX Port Expressway Link project, once completed, is expected to “stimulate development in Manila, Caloocan, Malabon and Navotas, as well as its surrounding areas,” the DPWH said on its website.

It is also seen to decongest Metro Manila traffic, give trucks a 24/7 alternative route and resolve truck-ban problems, provide better access to Manila ports (North Harbor) and airports (Ninoy Aquino International Airport and Clark airport), and complete the connection of NLEX with SLEX.

The project is expected to reduce travel time from SLEX to NLEX to just 20 minutes from two hours, reduce travel time from Clark to Calamba to one hour and 40 minutes from approximately three hours, and benefit at least 35,000 motorists or vehicles per day.

NLEX Corp. is part of Metro Pacific Tollways Corp., the tollway unit of Metro Pacific Investments Corp. (MPIC).

MPIC 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

Bought for $2.9 M, NFT of Jack Dorsey tweet finds few takers

LONDON —  Crypto entrepreneur Sina Estavi made headlines in March 2021 when he paid $2.9 million for an NFT (non-fungible token) of Twitter boss Jack Dorsey’s first tweet. But his efforts to re-sell it have run aground, with a top bid of just $6,800 as of Thursday.

The initial purchase was at the time among the most expensive sales of a non-fungible token, or NFT, and came amid a flurry of interest in the niche crypto assets which have since generated billions of dollars in sales.

Mr. Estavi put the tweet up for resale on the popular NFT marketplace OpenSea last week, initially asking for $48 million.

That price tag was removed after offers in the first week were in the low hundreds of dollars. As of Thursday, the highest bid was 2.2 of the cryptocurrency ether —  equivalent to around $6,800.

“My offer to sell was high and not everyone could afford it,” Mr. Estavi, who was recently freed from jail in Iran, told Reuters via Twitter direct message, adding that he was no longer sure if he would sell the NFT.

“It’s important to me who wants to buy it, I will not sell this NFT to anyone because I do not think everyone deserves this NFT,” Mr. Estavi said.

NFTs are a form of crypto asset which can record the ownership of a digital file such as an image, video or text.

There is no guarantee of an NFT’s value and the market is rife with scams, fraud, counterfeits and market manipulation.

But Mr. Estavi was confident in the value of his purchase.

“This NFT is not just a tweet, this is the Mona Lisa of the digital world,” he said.

‘VICTIM OF CRYPTO’
Mr. Estavi, who lives in Malaysia, said he had been arrested last May during a trip to Iran and held in solitary confinement until he was freed in February. Iranian state media reported in May 2021 that he was accused of “disrupting the country’s economic system.”

Mr. Estavi said he had been arrested because of the growth of his crypto exchange, Bridge Oracle, and described himself as a “victim of crypto.”

Reuters was unable to independently verify these details.

“I need the support of the cryptocurrency community,” Mr. Estavi told Reuters.

While announcing the NFT sale in a tweet on April 6, he pledged to give 50% of the proceeds — which he expected to be at least $25 million — to charity. He said the rest would go to support Bridge Oracle. — Reuters

Petron says no supply shortage in short term amid Ukraine war

PETRON.COM

RAMON S. Ang-led oil company Petron Corp. said it does not anticipate any supply shortage in the near future as a result of the ongoing Russia-Ukraine conflict.

“In relation to the ongoing conflict between Russia and Ukraine…, Petron currently does not foresee issues on its oil supply on a short or medium-term basis,” the company said in its annual report released last week.

The oil company does not have term crude supply contracts with Russia. It said that it primarily sources its crude requirement from the Middle East.

“However, based on recent events and market sentiments, oil prices are expected to be high during the crisis and in the event of a protracted conflict, oil supply could become tight,” Petron noted.

The company also said it holds an estimated two months’ worth of crude oil and finished petroleum products inventory in the country.

“Geopolitical factors such as the current Russia-Ukraine conflict can affect its financial performance.”

Petron reported an attributable net income of P5.37 billion for 2021, a turnaround from a loss of P11.38 billion the previous year, owing to demand recovery.

The listed oil company said it regained momentum with improved margins, driven by the improving global vaccination rate, the reopening of economic activities, and the Organization of the Petroleum Exporting Countries’ managed output hikes.

Petron’s consolidated net income for 2021 rebounded to a P6.14-billion profit from a loss of P11.41 billion in 2020.

The company said it sold 82.24 million barrels last year, a “5% growth made possible by the easing of restrictions and restart of economic activities that improved overall demand during the period.”

“Retail volumes in the Philippines managed to grow despite granular lockdowns,” it noted.

“Growth in commercial sales remained subdued largely due to the slowdown in the aviation industry,” it added.

Petron shares closed 0.61% higher at P3.31 apiece on April 13. — R.C.S. Agustin

Abaca production down 13.7% in first two months

BW FILE PHOTO

ABACA OUTPUT fell 13.7% to 8,693.38 metric tons (MT) in the first two months of the year, according to the Philippine Fiber Industry Development Authority (PhilFIDA).

“We’re still studying these results and what happened because the momentum this 2022 suddenly dropped,” PhilFIDA Executive Director Kennedy T. Costales said in an interview.

SOCCKSARGEN region reported the biggest decline of 55.7% to 185.83 MT.

Top producer Bicol region’s output fell 34.9% to 2,361.37 MT. That of Central Visayas was down 24.4% at 27.68 MT, Davao region down 21.8% at 1,705.14, Autonomous Region in Muslim Mindanao (ARMM) down 16.2% at 451.27, Northern Mindanao down 13.2% at 1,137.5 MT, Zamboanga Peninsula down 8% at 82.69 MT, and Central Luzon down 5.1% at 6.15 MT.

Meanwhile, production in the Eastern Visayas rose 73.2% to 635.09 MT. That of Caraga was up 46.3% at 1,591.81 MT, Southern Tagalog up 32.9% at 10.71, and Western Visayas up 22.7% at 498.14 MT.

For the year, PhilFIDA has set an output target of 70,000 MT.

“It’s still very early to conclude. We can still rebound,” Mr. Costales said, adding however that the weather has been unfavorable.

“It’s the first time in April where we had two typhoons. Whenever it rains, the farmers cannot harvest. Production slows down,” he added. — Luisa Maria Jacinta C. Jocson

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