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Philippines gets $250-M loan for vaccines

The Asian Infrastructure Investment Bank (AIIB) approved on Thursday night a $250-million loan to help the Philippines buy more coronavirus vaccines, according to the Finance chief. 

The loan is one of several multilateral funds that would be used to buy vaccine boosters and doses for children, Finance Secretary Carlos G. Dominguez III said on Wednesday. 

An AIIB document released last month showed the project is under the multilateral bank’s COVID-19 crisis recovery facility. co-financed and led by the Asian Development Bank (ADB). 

The total project cost of $553.66 million is expected to be partially financed by the ADB, with its own $250-million loan. The Philippine government will cover the rest of the funds. 

Buying more vaccines would help the Philippines mitigate health, social and economic problems caused by the pandemic, the AIIB said. 

Meanwhile, South Korea has given the Philippines a $100-million loan to support its vaccination program. 

Representatives from the two countries on Friday signed the agreement for the second phase of the COVID-19 emergency response program, the Finance department said in a separate statement. 

“This financial assistance from Korea will go a long way in helping the Duterte administration rev up its mass vaccination program against COVID-19 that is crucial to the strong rebound by our domestic economy come 2022,” Mr. Dominguez said in the statement. — Jenina P. Ibañez 

Typhoon spurs more flight cancellations

Flag carrier Philippine Airlines (PAL) and budget airline Cebu Pacific canceled more flights on Friday as Typhoon Rai, locally named Odette, battered the central and western parts of the country. 

PAL cancelled several flights for Dec. 17, including those between Manila and Cebu, Iloilo, Bacolod, Dipolog, Puerto Princesa, Busuanga, Caticlan, Cagayan de Oro, Dumaguete, Siargao and Cotabato. 

It also cancelled flights between Cebu and Siargao, Davao, and Caticlan. 

Meanwhile, Cebu Pacific canceled various flights for Dec. 17 between Manila and Cebu, Busuanga, Puerto Princesa, Dipolog, Siargao, Surigao and Dumaguete. 

The budget carrier also cancelled flights between Cebu and Tacloban and Davao. 

The Philippine Coast Guard said more than 2,300 passengers, drivers and helpers were stranded at 12 Bicol ports, including Pioduran, Bacacay, Legazpi and Virac as of noon on Friday. Sea conditions in the region were moderate to rough. 

More than 1,300 people were stranded at Southern Tagalog ports, including Calapan, Roxas, Bulalacao, Abra de Ilog, Tilik, and Lucena. The Coast Guard said sea conditions in the area were light to moderate. 

In Western Visayas, more 1,180 people were stranded at 12 ports including Araste, Lapuz and Parola, it said. More than 1,000 people were stranded at 13 ports in Eastern Visayas where sea conditions were rough. Affected ports included Ormoc, Baybay, Isabel and Bato. 

It said 339 people were stranded at 35 ports affected in In Central Visayas, while 37 sea travelers at 14 ports in Northeastern Mindanao were affected. 

The Coast Guard said 275 vessels and 134 motorboats took shelter from the typhoon. 

Meanwhile, Globe Telecom, Inc. said its data and mobile services were affected in some areas in the Visayas and Mindanao. 

“Outages were caused by multiple fiber cuts and the lack of commercial power,” Globe said in a statement. 

PLDT, Inc. said it had set up free call and charging stations at an evacuation center in Surigao del Sur. It also sent emergency load assistance to affected customers in Dinagat Islands, Surigao del Sur and Surigao del Norte, Bohol and Southern Leyte. — Arjay L. Balinbin 

Typhoon Rai may make landfall in Palawan

The northern portion of Palawan province was placed under signal No. 3 on Friday as Typhoon Rai, known locally as Odette, was projected to make another landfall there. 

Covered by the typhoon signal were the towns of El Nido, Taytay, Araceli, Dumaran, Roxas, San Vicente and Puerto Princesa City, as well as Cagayancillo and Cuyo Islands, according to the local weather bureau. 

The eye of the typhoon was spotted 130 kilometers southwest of Cuyo, Palawan, it said in a 2 p.m. bulletin posted on its website. 

The storm was packing maximum sustained winds of 155 kilometers per hour near the center and gustiness of 215 kph. It was to cross the South China Sea toward the Spratly Islands before leaving the Philippine area of responsibility by Saturday morning or afternoon, the agency said. 

The Agriculture department said it would provide relief goods to farmers and fishermen, including 42,823 bags of rice seeds, 12, 484 bags of corn seeds and 11,132 kilos of assorted vegetables. 

The Bureau of Fisheries and Aquatic Resources will provide P1.64 million worth of fingerlings and assistance to affected fisherfolk, while the Agricultural Credit Policy Council will give P100 million in survival and recovery assistance. 

“We reiterate our call to the public to continue to remain vigilant, stay safe and dry and cooperate with local authorities to ensure everybody’s safety,” acting presidential spokesman Karlo Alexei B. Nograles said in a statement on Friday. 

The local disaster risk agency said 332,855 people from 83,026 families had been evacuated in Western, Central, and Eastern Visayas, Zamboanga Peninsula and Caraga. In a bulletin, the agency said 14,680 persons from 4,989 families were inside 192 evacuation centers in Bicol, Western and Eastern Visayas, Northern Mindanao and CARAGA. 

The Transportation department said that as of Thursday, airport operations at Mactan Cebu Airport had been suspended. — Luisa Maria Jacinta C. Jocson and Alyssa Nicole O. Tan 

Fewer students attending physical classes

PHILSTAR

Only eight of 10 students have attended classes under the government’s pilot run of face-to-face classes after some of them showed flu-like symptoms, the Department of Education (DepEd) said on Friday. 

“We’re barely hitting the surface,” Senator Sherwin T. Gatchalian told a Senate hearing. “It’s only 44% of the total number of schools and 80% of the total number of students.” 

“Before we can transition to the new normal phase, we hope that we can get a larger number of schools that can participate in the expansion phase,” Education Assistant Secretary Malcolm S. Garma told senators. 

Of 287 participating schools, 265 are public and the rest are private, the agency said. About 23,000 students were participating in physical classes. 

Mr. Garma cited challenges during the pilot run, including limited time and resources. — Alyssa Nicole O. Tan 

High court stops Comelec action vs party-lists

PALACIO del Gobernador, where the Comelec holds office — PATRICK ROQUE

The Supreme Court on Friday stopped the Commission on Elections from enforcing orders that rejected the registration of three party-lists. 

In separate orders, the high court also directed the Comelec to comment on the petitions filed by the Igorot Warriors International, Ang Tinig ng Senior Citizens and Alliance for Resilience, Sustainability and Empowerment within 10 days. 

The parties earlier accused the election body of gravely abusing its discretion when it refused to recognize them. 

More than 160 party-list groups vying for 63 congressional seats next year joined a virtual raffle on Tuesday to set the order of their names on ballots. The Comelec has said it would need at least two more weeks to finalize the ballot list. — Jaspearl Emerald G. Tan 

House urged to pass pro-athlete bills

FILIPINO Olympic gold medalist Hidilyn Diaz

A congressman has asked the House of Representatives to approve two bills that will give benefits to Filipino athletes who win in international sports competitions. 

In a statement, Camarines Sur Rep. Luis Raymund F. Villafuerte, Jr. Urged his colleagues to pass a measure he filed that seeks to give women equal opportunity in athletic scholarships and prizes, and another bill that seeks to protect Filipino athletes in the national team. 

“These measures, along with the grant of benefits to them and the law establishing the National Academy of Sports show that they will never be forgotten for their contributions to nation-building,” he said. 

A House committee recently approved twin measures that seek to give health care and death benefits to professional sportsmen who have won international awards. — Jaspearl Emerald G. Tan 

BSP to inspect institutions’ cybersecurity defenses

REUTERS

The Bangko Sentral ng Pilipinas (BSP) will soon require financial institutions to demonstrate the robustness of their cybersecurity systems.

“Now prior to offering electronic payments and financial services, BSP-supervised financial institutions must undergo the BSP’s approval process, which requires rigorous security controls and consumer protection mechanisms,” BSP Governor Benjamin E. Diokno said in a briefing Friday.

“Compliance with BSP security and risk management standards are assessed during on-site examination as well as off-site monitoring.”

The central bank is in its final stages of developing a circular requiring the adoption of strong fraud management systems and temporary freezes on funds to minimize losses from fraudulent activities, the BSP said.

“Based on the reported crimes and losses submitted by BSP-supervised financial institutions, the top cyber incidents pertained to account takeover or identity theft, and card not present fraud, which are attributable to phishing, and its variants such as phishing and other cyber fraud schemes,” Mr. Diokno said.

The central bank recently identified the owners of accounts receiving illicit fund transfers involving two lenders last weekend.  Individuals who said they were BDO Unibank, Inc. account holders alleged on social media that their funds were transferred without authorization to UnionBank of the Philippines, Inc. accounts.

“We are also expanding the scope of our investigation, because we have surveillance showing that there may be other institutions other than of course, UnionBank, which may have been used to funnel away the stolen funds,” BSP Technology Risk and Innovation Supervision Director Melchor T. Plabasan said.

“So we will also we also want to get to the bottom of that particular issue or concern.”

He said it is too early to tell whether there will be penalties against institutions involved.

“It’s still premature or too early to tell whether we are going to resort to enforcement action or monetary or non-monetary sanctions, but then again, imposing sanctions is also a part of the regulatory framework to ensure that we are able to achieve the desired change and also to mitigate further risk,” he said. – Jenina P. Ibañez

BSP makes full award at P80-B 28-day bill auction, average rates lower

BW FILE PHOTO

The Bangko Sentral ng Pilipinas (BSP) fully awarded the P80 billion in 28-day securities on auction Friday, with the average rate falling compared with a week earlier.

The bills attracted P104.56 billion in tenders. Demand was lower than the P105.85 billion seen last week.

Accepted rates for the one-month debt ranged from 1.785%-1.98%, against the 1.77%-2.038% range a week earlier.

The average rate for the one-month securities was 1.8534%, against 1.8653% last week.

The central bank uses its short-term securities and term deposit facility to mop up excess liquidity in the financial system and guide market rates.

The average yield eased week-on-week after the national government’s cash position increased with the recent retail Treasury bond (RTB) issuance, as seen in the two straight weeks of rejected bids at the Treasury bond auctions, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Sentiment was also supported by the Bicameral approval of the 2022 national budget earlier this week, now for final approval/signing into law by President Duterte any time soon, before the Christmas break,” he said.

The government raised P360 billion via five-and-a-half-year retail Treasury bonds that ended last month amid strong demand from investors.

The issuance was the Treasury’s second RTB offering of the year after it raised P463.3 billion from three-year retail paper in February. – Jenina P. Ibañez

UCPB shareholders approve LANDBANK merger

LAND BANK OF THE PHILIPPINES FB PAGE

United Coconut Planters Bank (UCPB) shareholders approved the planned merger with Land Bank of the Philippines (LANDBANK), with the combined entity producing a bank with nearly P3 trillion in assets, LANDBANK said Friday.

Shareholders representing 97.2% of the outstanding capital stock of UCPB voted in favor of the merger of the two state-run banks during their Dec. 14 meeting, LANDBANK said in a statement.

President Rodrigo R. Duterte in June signed an executive order approving the merger, in which all assets and liabilities of UCPB will be transferred to LANDBANK.

The order noted that the banks both have a compatible development mission.

“Coconut farmers and other workers in the agricultural sector stand to benefit most from LANDBANK’s enhanced financial muscle, as evidenced by the Bank’s consistently growing agriculture lending from P222.05 billion in 2018, to P236.31 billion in 2019, and P237.62 billion in 2020,” LANDBANK said.

LANBANK’s net profit grew 21.2% year-on-year to P16.72 billion in the first nine months, with total assets growing 13.6% to 2.564 trillion.

“With this merger, we are looking forward to a stronger, more resilient and unified banking institution that will promote and broaden financial inclusion among Filipinos, especially those who belong to the underserved and unbanked sectors,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo said.

LANBANK said that deposits in both banks will remain intact and services will not be interrupted. — Jenina P. Ibañez

Security Bank estimates 2021 GDP growth at 5.1%

BW FILE PHOTO

Security Bank Corp. said the economy will likely expand by 5.1% in 2021 with household consumption continuing to support fourth quarter growth.

“So far the outlook for fourth quarter growth is on track. We’re seeing domestic activity improving and retail footprint getting more pronounced,” Security Bank Chief Economist Robert Dan J. Roces said in a briefing Friday. “Consumption could likely be the key driver again.”

“We can’t really characterize it as revenge spending because we don’t really know to what extent the ability of people to spend will be,” he said, noting some reluctance because the pandemic continues to loom as a threat to growth.

He said however that “cautious revenge spending” can be seen in the improved prospects for retailers.

A spike in government spending will also help drive growth, he added.

He said the Omicron variant of coronavirus disease 2019 (COVID-19) remains a risk, but added that the vaccination rollout could support sentiment.

Third-quarter GDP grew 7.1%, against the 12% expansion in the preceding three months, after the government reintroduced lockdowns to curb a Delta-driven COVID-19 surge.

Third-quarter growth was still stronger than expected, prompting both the World Bank and the Asian Development Bank to raise their full-year economic growth forecasts for the Philippines.

On Tuesday, economic managers raised the government GDP growth projection to 5-5.5% for this year from the downgraded 4-5% goal issued in August. – Jenina P. Ibañez

Peso weakens after Fed sets timetable for winding down bond buying

The peso weakened against the dollar Friday amid hawkish signals from the US Federal Reserve.

The peso closed at P50.02 Friday against its P49.96 finish Thursday, according to the Bankers Association of the Philippines.

The peso opened at P49.95, with the intraday high at P49.89 and the low at P50.04.

Dollar volume rose to $900.65 million on Friday from $826.63 million a day earlier.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the peso was slightly weaker, but noted it was still the strongest it has been in more than a month, following remarks by the Fed.

“Some central banks already raised key short-term interest rates, such as the UK,” he said.

The Fed on Wednesday said it will end its bond purchase program – a key component of its quantitative easing program – in March, with officials expecting to raise rates three times next year as the US battles inflation.

Mr. Ricafort said such Fed action will prevent inflation from spiraling further, or at least manage inflation expectations.

He noted the Bangko Sentral ng Pilipinas keeping its key policy rate at 2%, but added that the central bank has raised its inflation estimates for the next two years.

“The peso remains relatively strong largely due by the seasonal surge/culmination in OFW remittances and conversion to pesos, especially with almost a little over a week before Christmas in view of the holiday spending rush,” he said. – Jenina P. Ibañez

To produce unicorns, PHL startup community needs policy continuity

UNSPLASH

The startup community hopes to weather the uncertainties that accompany the upcoming national elections.  

“It’s not always a matter of new policies, but also of the consistency of policies,” said Carlo C. Calimon, concurrent director of Let’s Go Foundation, a non-profit that advocates entrepreneurship, and local incubator and accelerator StartUp Village. “When the next person comes in, everything is scrapped.”  

Startups need a stable environment to test their ideas, he added. Food trucks, which were all the rage several years ago, are now only seen in parties because of paperwork issues. 

“When you apply for a food truck permit, the LGU [local government unit] will say you can’t apply, because you’re not under any category. You kill the startup before it actually starts,” Mr. Calimon said on Friday at a BusinessWorld Insights webinar.

BUILDING UNICORNS 

Innovation should be a national priority and not “a nice side dish,” said Katrina Rausa Chan, concurrent executive director of QBO Innovation Hub, a platform that supports startups, and IdeaSpace Foundation Inc., a non-profit for early-stage startup founders. “As much as a grassroots approach benefits Filipinos, a top-down approach would be great as well,” she added. 

“Talent is the fuel that drives any startup, and Filipinos have proven their ability to execute in companies around the world,” she said, pointing out several factors working in the country’s favor: a young demographic, a growing economy, its willingness to adopt technologies, and an increase in fundraising this year.  

Total fintech funding in the first half of 2021 amounted to $5.56 billion in the Asia Pacific — more than double the same period last year, and on track to top pre-pandemic levels, per S&P Global Market Intelligence, a provider of financial and industry data and research.  

Among the shining stars of the local innovation landscape is Mynt, the first unicorn born in the Philippines, and the company that powers the e-wallet GCash.  

“Building these unicorns is a long-term game, and GCash was able to innovate and build on top of its product,” said Luis S. Sia, co-founder and chief commercial officer of PayMongo, a payment processing platform. “GCash also speaks to the underserved market. They cater to Filipinos who do not have access to the same financial services as those who are banked.”  

Like GCash, PayMongo was founded when its founders realized that MSMEs (micro, small, and medium enterprises) needed a payment product tailored to their needs.  

“I think entrepreneurs should focus on providing value for customer,” Mr. Sia said. “At the end of the day, technology is there to support how people can solve problems.”  

While the coronavirus pandemic was an inflection point for growth, entrepreneurs don’t need global crises to innovate. “Now is the time companies and businesses are embracing technology and innovation… we have to put our creativity into play even without disruptions,” Mr. Calimon said. — Patricia B. Mirasol 

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