More contagious Delta variant makes people sicker

September 1, 2021 | 12:02 am

THE following is a summary of some recent studies on coronavirus disease 2019 (COVID-19). They include research that warrants further study to corroborate the findings and that have yet to be certified by peer review.

DELTA VARIANT MAKES PEOPLE SICKER
The Delta variant of the coronavirus is known to be more easily transmissible than earlier versions, and now a large UK study suggests it also makes people sicker. Researchers analyzed data on 43,338 patients infected with either the Alpha or the Delta variant. Overall, roughly three quarters were unvaccinated, and half were under age 31.

After accounting for patients’ underlying risk factors, researchers found that unvaccinated patients were 132% more likely to be hospitalized if they were infected with Delta than with Alpha. Vaccinated patients may also be more likely to require hospitalization with a Delta infection, but data for those patients was less clear, according to a report published on Friday in The Lancet Infectious Diseases.

The results “suggest that outbreaks of the Delta variant in unvaccinated populations might lead to a greater burden on healthcare services than the Alpha variant,” the researchers concluded.

ORAL DRUG SHOWS PROMISE AGAINST COVID-19 PNEUMONIA
Severely ill patients with COVID-19 pneumonia who received the experimental oral drug opaganib developed by RedHill Biopharma required less extra oxygen and were able to leave the hospital sooner than patients receiving a placebo in a small randomized trial, researchers reported on Sunday on medRxiv ahead of peer review.

Within 14 days after enrolling in the study, 50.0% of patients taking opaganib no longer needed oxygen, compared to 22.2% of patients in the placebo group. In addition, 86.4% of opaganib-treated patients had been discharged, versus 55.6% in the placebo group.

On Thursday, RedHill announced that opaganib strongly inhibits the Delta variant of the coronavirus in test tube experiments. The drug is believed to exert its antiviral effect by inhibiting sphingosine kinase-2 (SK2), a key enzyme in cells that may be recruited by the virus to support its replication, the company said.

Based on the initial 42-patient trial conducted last year, RedHill Biopharma launched a much larger randomized trial in patients hospitalized with severe COVID-19 pneumonia. The last of the 475 patients in that late-stage study has now completed treatment and some of the data should be available soon, the company said last week.

SEIZURE IN CHILDREN MAY SIGNAL COVID-19
Seizures may be the only symptom of COVID-19 in some children, a new report cautions. Children tend to get sick from COVID-19 far less often than adults, and their symptoms are usually not severe, mainly consisting of fever and mild respiratory issues, although more have become ill with emergence of the Delta variant.

Among 175 children who came to an Israeli emergency room and were diagnosed with COVID-19, 11 were brought to the hospital because of seizures, researchers reported on Saturday in the medical journal Seizure. Only seven had previously been diagnosed with a neurological disorder, and only six had fever. All 11 made full recoveries.

While seizures have not been a frequently reported problem in adults with COVID-19, they “may be the main manifestation of acute COVID-19 in children,” even without fever and without a history of epilepsy, the study authors said.

In some hospitals, they point out, only children with flu-like symptoms or close contact with a confirmed COVID-19 patient get tested for the coronavirus. Medical personnel should be aware that children with seizures should be tested, too, they said. — Nancy Lapid/Reuters

SMPC turns over P1.7-B royalties to DoE

September 1, 2021 | 12:02 am

CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) has transferred around P1.7-billion worth of royalty payments to the Department of Energy in the second quarter, marking a new record for the listed energy firm.

“Of the P1.7 billion, more than P1 billion will be retained by the national government. The rest will go to the host local government units of the SMPC mine site. The province of Antique will receive P136 million while the municipality of Caluya and Barangay Semirara will receive around P300 million and P230 million, respectively,” SMPC told the local bourse in a regulatory filing on Tuesday.

The Local Government Code of 1991 states that local government units are entitled to receive a 40% share of royalties from proceeds of activities in the petroleum, coal, geothermal, hydrothermal and wind industries.

SMPC said it was able to turn over its record-high quarterly amount to the government after generating P14.8 billion in revenues driven by high coal sales and increased average selling prices during the period.

“The pandemic has taken a significant toll on our country. We hope that our contribution can help boost our government’s response against COVID-19 (coronavirus disease 2019),” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said.

On its website, SMPC describes itself as the only power producer in the country that owns and mines its own fuel source. The firm earns its revenues through the production and sale of sub-bituminous coal. It also has existing coal supply contracts with its own power subsidiaries as well as other power plants, cement manufacturers and small boiler users.

The company previously reported that its consolidated net income rose by more than three times to P3.98 billion in the second quarter on the back of higher coal sales.

Shares in SMPC at the local bourse inched up by 2.79% or 46 centavos to finish at P16.96 apiece. — Angelica Y. Yang

Asakawa reelected as president of the Asian Development Bank

September 1, 2021 | 12:02 am

ASIAN DEVELOPMENT BANK (ADB) President Masatsugu Asakawa has been reelected to head the multilateral bank for the next five years and vowed to help the Asia and the Pacific region bounce back from the pandemic.

Mr. Asakawa will start his second term on Nov. 24 after a unanimous vote from the ADB Board of Governors. He was elected as ADB’s 10^th president on November 2019 and assumed the position on Jan. 17, 2020 to finish the remaining term of his predecessor Takehiko Nakao.

“My vision for the upcoming term is for ADB to serve as the premier development institution for Asia and the Pacific as it supports its developing member countries in recovering from the coronavirus disease (COVID-19) pandemic on a renewed path toward the prosperous, inclusive, resilient, and sustainable future we envisioned in our Strategy 2030,” Mr. Asakawa said.

Under his watch, the ADB launched several facilities to help countries finance their pandemic response and help them cope with the crisis, including its $20-billion comprehensive response package in April of last year and the $9-billion facility rolled out in December 2020 to help governments buy vaccines.

Prior to joining the ADB, Mr. Asakawa was the special advisor to Japan’s Prime Minister and held the position of Minister of Finance for nearly four decades “where he gained extensive and diverse experience in international finance and development.”

He also served as the Organization for Economic Cooperation and Development’s chair of the committee on fiscal affairs between 2011 and 2016, where he led global talks on taxation.

Last year, the ADB lent the Philippine government $1.8 billion to beef up its war chest against the coronavirus pandemic and finance additional spending on cash subsidies and healthcare system.

It granted a total of $4.24 billion in new loans in 2020, its highest annual lending for the Philippines so far.

The Manila-based multilateral bank has set a $3.9-billion lending pipeline for the Philippines this year aiming to finance key projects on infrastructure, health, local economic development, and social development. — Beatrice M. Laforga

Instagram to require users to share their birthday amid youth safety push

September 1, 2021 | 12:02 am

souvik-banerjee-E6Yg8ACZ2vw-unsplash — SOUVIK BANERJE-UNSPLASH

INSTAGRAM will begin requiring users to confirm their birthdays as part of an effort to create new safety features for young people, the Facebook, Inc.-owned social media app said Monday.

Instagram has explored building a version of its app for kids under the age of 13, prompting lawmakers to urge Facebook to drop the plans, saying the social media company “has a clear record of failing to protect children on its platforms.”

Instagram said in a blog post it will use the information to “ensure we provide the right experiences to the right age group.” Last month, the company said it would default users under 16 to a private account when they join the platform.

The app said it will ask users for their birthdays when they open Instagram and then to show several pop-up notifications if the user does not enter their birthday. At some point, users will be required to submit their birth date to continue using the app, Instagram said.

The changes will only affect Instagram users who have not previously shared their birthday on the app.

Instagram added it was aware that some users might enter a false birth date and said it was developing new technology to address such issues. — Reuters

Arts & Culture (09/01/21)

September 1, 2021 | 12:01 am

1 of 15

Dance at the MET

THE ARTISTS of the Cultural Center of the Philippines Professional Dance Support Program and National Artist for Dance Alice Reyes present a special performance from the MET stage online. The performances include “Bluejays” with music by Pyotr Ilyich Tchaikovsky; “Moon” with music by Dead Can Dance; and “Sama-Sama” with music by National Artist Ryan Cayabyab. To watch, visit The Metropolitan Theater’s Facebook page. Done in collaboration with the Metropolitan Theater and its Artistic Director Nick Lizaso.

Call for exhibition proposals

THE NATIONAL Commission for Culture and the Arts (NCCA) Gallery is once again calling for exhibition proposals. It is an opportunity for Filipino artists from different backgrounds, different affiliations, and different regions to be able to showcase their work to a wider audience without compromising their creative vision. All proposals shall be deliberated over by the Exhibition Committee and the chosen exhibitions shall be executed with the support of the NCCA. For the 2022 exhibitions, the NCCA Gallery has opened proposal submissions until Sept. 15. Exhibition proposals can be part of celebrations, such as but not limited to: National Arts Month (February), Women’s Month (March), National Literature Month (April), Filipino Food Month (April), National Heritage Month (May), Indigenous Peoples Month (October), Museums and Galleries Month (October), and Library and Information Services Month (November). All exhibition proposals must be submitted via the Google Forms link (https://bit.ly/2022NCCAGalleryProposal) and will be accepted only when the necessary information is submitted with proper supporting documentation. For more information contact the NCCA Gallery Secretariat through 8527-2192 local 328, e-mail at gallery@ncca.gov.ph and nccagallery09@gmail.com or visit the website www.ncca.gov.ph.

Pure Source at the Blanc Gallery

THE BLANC Gallery presents “Pure Source,” an exhibition curated by Louie Cordero and Jordin Isip featuring works by James Bascara, Louie Cordero, Lourd De Veyra, Jordin Isip, Hazel Lee Santino, Erika Shiba, Astrid Terrazas, and Ricky Torre. The exhibit is on view until Sept. 18. Blanc Gallery is located at 145 Katipunan Ave., Quezon City. For inquiries, contact 0920-927-6436 or visit http://blanc.ph/exhibits/pure-source/.

West Gallery extends exhibit run

WEST Gallery has announced that its current exhibitions will have an extended run until Sept. 11. Currently on view are Beejay Esber’s “Wave Of Mutation,” Arturo Sanchez, Jr. and Hamilton Sulit’s “Lost In Eden,” the group show “Sagad!” featuring works by Alvin Capistrana, Jacob Lindo, Leonardo Onia, Jr., Mark Bardinas, and Rolf Campos, and Koki Lxx’s “Is Without Was.” The exhibits can be viewed online at www.westgallery.ph.

MO_Space opening 2 exhibits

MO_ SPACE gallery will be opening two exhibits on Sept. 4. On view at the Main Gallery will be Pope Bacay and Nicole Tee’s “home is not an address you memorize,” while at Gallery 2 will be Marionne Contreras’ “The House my Father Built.” Both shows will run until Oct. 3. The gallery is open daily from 10 a.m. to 6 p.m. at the 3^rd level of MOs Design, B2 Bonifacio High Street, 9^th Avenue, Bonifacio Global City, Taguig.

Araneta City launches #LivingHeroes photo exhibit

AS A TRIBUTE for the inspiring acts of ordinary Filipinos during the coronavirus disease 2019 (COVID-19) pandemic, Araneta City is opening a special National Heroes Day photo exhibit — both virtual and physical — featuring select modern-day heroes. Done in partnership with the J. Amado Araneta Foundation (JAAF), the social development arm of the Araneta Group, Araneta City is holding the #LivingHeroes photo exhibit that features individuals whose generosity, ingenuity, and inspiring deeds created ripples of hope to those who are heavily affected by the ongoing health crisis. View the exhibit virtually via the Araneta City official website https://aranetacity.com/living-heroes-photo-exhibit. A physical #LivingHeroes photo exhibit is also open for viewing at the Gateway Mall Activity Area. Each panel in this on-ground exhibit is equipped with a QR code to allow viewers to have a different virtual feel of the exhibit.

Silverlens exhibit features collectors

SILVERLENS presents the second edition of “Collectors Plus.” For this edition, it focuses on Philippine contemporary art from the years 2005 to 2015, from four collectors based in Hong Kong and Manila. The show includes early pieces by Maya Muñoz, Elaine Navas, Nona Garcia, Winner Jumalon, and Yasmin Sison-Ching, among others. There are two works from Yayoi Kusama’s Night Flowers series, early pieces by Pow Martinez, and Norberto Roldan signature altars. Accompanying the show is an early large five-panel painting by Bernardo Pacquing, a rare pastel painting of Chati Coronel, and an impressionist piece by Mit Jai Inn. The exhibit will run from Sept. 4 to Oct. 2, by appointment only. Meanwhile, Silverlens will also open Issay Rodriguez’s “Brighter Than Many Ever See” which probes narratives and meanings found in the cultivation and domestication of ornamental plants. It also runs from Sept. 4 to Oct. 2.

Books and toys drive for children-patients

NAG-UUGNAY Volunteer Initiative and the Philippine Society of Anesthesiologists — Bataan Olongapo Zambales Chapter (PSA BOZ) are holding a donation drive for children admitted in hospitals and children of health care workers in the 15 hospitals covered by the chapter. Dubbed Libro’t Laruan, the program aims to collect new or preloved toys and books for children being cared for in hospitals and children of health care workers who continue to take extra safety measures when going home to their loved ones. The donated books and toys would be distributed to the following hospitals: Isaac and Catalina Medical Center; Bataan Doctors Hospital and Medical Center; Bataan St. Joseph Hospital; Balanga Medical Center; Ulticare Medical Center; Jose C. Payumo, Jr. Memorial Hospital; Centro Medico de Santisimo Rosario; Bataan General Hospital and Medical Center; Orani District Hospital; Bataan Peninsula Medical Center; Mariveles District Hospital; James L. Gordon Memorial Hospital; Orion St. Michael Hospital; Allied Care Experts Medical Center-Baypointe; and Ridon St. Jude Medical Center Olongapo City. Adarna House and Adarna Group Foundation, Inc. have donated 257 picture books to the program. Tahanan Books, on the other hand, sent two sets of 13 titles comprised of early concept books and storybooks. These initial book donations are allocated for the pediatric wards of James L. Gordon Memorial Hospital and Ridon St. Jude Medical Center Olongapo City. For those who would like to donate children’s books and toys, message Nag-uugnay Volunteer Initiative FB Like Page https://www.facebook.com/naguugnayvolunteerinitiative or e-mail pagawaanincorporated@gmail.com.

Understanding epilepsy

September 1, 2021 | 12:01 am

Even in the 21^st century, epilepsy remains shrouded in myth. Centuries-old misconceptions persist, fueling fear, misunderstanding, discrimination, and social stigma. As the country celebrates National Epilepsy Awareness Week, it’s time to shine the spotlight on the scientific facts about epilepsy and ways to better manage it.

Epilepsy is a chronic noncommunicable disease (NCD) of the brain characterized by recurrent seizures caused by excessive electrical discharges in a group of brain cells, according to the WHO. Seizures are brief episodes of involuntary movement that may involve a part of the body (partial) or the entire body (generalized) and are sometimes accompanied by loss of consciousness and control of bowel or bladder function.

The World Health Organization (WHO) estimates that around 50 million people worldwide have epilepsy, making it one of the most common neurological diseases globally. A local study “Treatment gaps and challenges in epilepsy care in the Philippines” published early this year in the international journal Epilepsy & Behavior estimates a 0.9% prevalence of epilepsy in the country, representing nearly a million Filipinos.

Epilepsy is not contagious. It is also not true that people with epilepsy are mentally ill or emotionally unstable, or are less smart. Epilepsy is a functional, physical problem — not a mental one. It can develop at any age. Having a seizure doesn’t automatically make a person epileptic; other factors can provoke a seizure, such as binge drinking, sleep deprivation, or a new medication.

A person is diagnosed with epilepsy when he or she has two or more unprovoked (“out of the blue”) seizures that occur more than 24 hours apart, according to the Cleveland Clinic’s “13 Common Epilepsy Myths, Debunked.”

Contrary to what we sometimes see in movies, one should never put anything into a person’s mouth or force it open if they are having a seizure. “This could actually injure them,” the Cleveland Clinic explained. “Roll the person on one side, keep him or her a safe distance from any nearby objects, and let the seizure run its course. If you see any signs of distress or if the seizure persists for more than a couple of minutes, call [emergency medical services].”

Although many underlying disease mechanisms can lead to epilepsy, the cause of the disease is still unknown in about 50% of cases globally, the WHO added.

Identified causes of epilepsy include brain damage from a loss of oxygen or trauma during birth and low birth weight; congenital abnormalities or genetic conditions with associated brain malformations; severe head injury; stroke; an infection of the brain, certain genetic syndromes; and brain tumor.

The Centers for Disease Control and Prevention (CDC) emphasize that most people with epilepsy live a full life. People with epilepsy must adhere to best possible seizure controls and live safely to reduce the risk of early death, the CDC added. This means avoiding risk factors such as having more serious health problems (i.e., stroke or tumor) that may also cause seizures, falls, or injuries; and seizures that last more than five minutes which happens when one suddenly stops taking the appropriate medicines.

Regular exercise is rarely the cause of seizures. According to the CDC, safely engaging in exercise and sports, in fact, improves overall health.

There are, on the other hand, real seizure triggers that vary from person to person. These include missing medications, being sick with another illness, flashing lights, menstrual cycles or other hormonal changes, and alcohol or drug use, according to the Epilepsy Foundation.

Remember that epilepsy can be managed. The WHO states that up to 70% of people living with epilepsy can become seizure-free with the appropriate use of anti-seizure medicines, including recently introduced ones with safer long-term profiles. Lastly, surgery to prevent future seizures is also an option.

A person who has a seizure for the first time must speak with a healthcare professional. Once diagnosed, learning how to recognize seizure triggers, getting enough sleep and lowering stress levels will also help in managing epilepsy.

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP), which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are at the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Apollo Global completes P988-M follow-on offering

September 1, 2021 | 12:01 am

APOLLO Global Capital, Inc. completed its follow-on offering (FOO) on Tuesday, raising P988 million from the sale of 12.35 billion shares for eight centavos each.

It listed follow-on shares at the Philippine Stock Exchange (PSE).

“Now that this FOO has jumpstarted the company’s quest to commence operations, I hope that all other factors will fall into place because the company’s investors have long-awaited and deserve positive developments on this front,” PSE President and Chief Executive Officer Ramon S. Monzon said during the listing ceremony.

According to its prospectus dated Aug. 13, the company will be using the majority of the proceeds from the follow-on offer to acquire a 49% stake in Poet Blue Ocean Pte Ltd. Proceeds will also be used to buy environmental and ecological mitigating measures, equipment and insurance as well as for its general corporate purposes.

Singapore-based Poet Blue Ocean owns the MB Siphon Vessel 1, which will be used for the offshore mining activities of Apollo Global subsidiary JDVC Resources Corp.

The MB Siphon Vessel 1 is estimated to start its operations on or before the end of April next year, subject to weather conditions and once all the necessary environmental protection equipment and ecologically balanced offshore mining protective gears have been procured.

“The procurement of the required equipment will normally take four to five months which will be sourced from China and Japan,” the company said in its prospectus.

On Tuesday, shares of Apollo Global at the stock market declined by 4.39% or P0.005 to close at P0.109 each. — Keren Concepcion G. Valmonte

Financial behaviors shift amid coronavirus crisis

September 1, 2021 | 12:01 am

FILIPINOS are now more focused on spending for necessities and investing as the coronavirus pandemic has shown the importance of having enough savings for emergency situations.

In a BusinessWorld Insights session on Tuesday titled “Saving, Spending, Investing: Achieving Financial Goals even amid a Crisis,” experts said more Filipinos became aware of the need for financial security due to the crisis.

Manulife Asset Management and Trust Corp. (MAMTC) President and Chief Executive Officer Aira Gaspar said younger Filipinos who belong in Generations Y and Z or those aged 40 years old and below said they are setting aside a budget for their necessities and starting to invest due to the pandemic.

Ms. Gaspar cited a study they conducted, which showed 81% of Filipino respondents belonging to this age group are now actively working towards a financially secure future.

“This change actually came with the recognition that they relatively have lower income, their limited funds should be focused on necessities. They also acknowledge that job opportunities in the current environment is limited,” she said.

Meanwhile, AIA Philippines Chief Executive Officer Kelvin Ang said savings and protection have become a more crucial financial concerns for Filipinos given the uncertainties during the pandemic.

He said a survey they have conducted in AIA’s markets in Asia earlier this year showed 71% of Filipino respondents said their income was negatively affected by the crisis. Half of the survey respondents also said their savings were reduced in 2020.

“Many of them placed their savings with the bank and they are not happy with the interest given the low interest rates now, so they are in a lot of stress looking at their bank savings depleting in value because of inflation,” Mr. Ang said.

Clients have also become interested in buying products to protect their health and long-term savings, he added.

The pandemic served as an “eye opener” for many Filipinos regarding financial goals, said Edser Trinidad, first vice-president and head of Investments and Research at First Metro Asset Management, Inc. (FAMI).

“In the past, a part of their financial goals is to set aside some for a goal to travel, to purchase material things, but because of the uncertainties, the goal has changed. They’re now putting emphasis on putting financial buffers for the family, setting aside more…for securing health and well-being,” he said.

Filipinos’ investment appetite also changed, he said, with most becoming more conservative last year and choosing products like time deposits and money market funds.

However, this year, risk appetite has improved due to prospects of global reopening and higher vaccination rates in more developed markets, he said. With this, more individuals have started to look for investment opportunities offshore.

There was also a change in the financial behavior of affluents amid the crisis, said Lorraine Saguinsin, relationship manager at the private banking group of UnionBank of the Philippines, Inc. She said their joint study with Swiss private bank Lombard Odier showed ultra-wealthy individuals are focusing on technology, investments, sustainability, and family services during the economic downturn.

Ms. Saguinsin said families need to discuss the transfer of assets and possible transition of roles in their managed businesses amid this time of uncertainty and the threat of death due to the coronavirus.

“With this pandemic, you never know what can happen tomorrow, you might lose a source of income or your business might be disrupted,” she said.

As the virus continues to affect the economy and individuals, Mr. Trinidad said Filipinos should focus on their financial goals.

“There is no perfect time to invest or save. You have to do something now to craft your future,” he said. — LWTN

Philippines ranks 85^th out of 150 economies in youth progress index

September 1, 2021 | 12:00 am

How PSEi member stocks performed — August 31, 2021

September 1, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, August 31, 2021.

Business, unions lobby for bigger role in job task force

August 31, 2021 | 9:13 pm

FInancial-assistance-casid-aid — PHILSTAR

BUSINESS GROUPS and trade unions said they need to be able to participate at the working-group level in preparing the National Government’s employment recovery plan.

The organizations said in a statement Tuesday that the National Employment Recovery Strategy (NERS) task force should have dialogue with employers and workers groups.

“The engagement of the task force with the genuine representatives of employers and workers groups will bring a more coordinated and cohesive collaboration among the public and private sectors in the recovery strategy of the economy,” the groups said.

“Substantively (involve) employers and workers groups by ensuring their genuine representation in the various technical working groups of the task force.”

The statement was released by the Leaders Forum, which is composed of the Employers Confederation of the Philippines, Federation of Free Workers, Philippine Chamber of Commerce and Industry, Sentro ng mga Nagkakaisa at Progresibong Manggagawa, Philippine Exporters Confederation, Inc., and the Trade Union Congress of the Philippines.

President Rodrigo R. Duterte in June signed an executive order creating the NERS task force to work on the government’s plan to restore employment until 2022.

Noting that the NERS implementation is on a 2021-2022 timeframe, the groups said social dialogue is needed to improve policy reforms that will shape the rebound from the economic crisis caused by the pandemic.

“The Leaders Forum appreciates that a whole-of-government approach is necessary to curb the ill effects of the pandemic and ultimately address the employment crisis with speed and urgency,” they said.

Private-sector groups in June said they planned to organize job caravan events, identify vacancies and make recommendations to the NERS task force, while the task force planned to provide profiles for job vacancy referrals and promote alternative work arrangements.

The recovery strategy is expected to involve the drafting of legislation, the upskilling of workers, the creation of employability programs, the provision of loan assistance to enterprises, the suspension of fees, and outlays for social protection to vulnerable groups.

NERS is budgeted for P1.14 trillion.

In late June, the Labor department estimated that NERS is “expected to generate at least 220,000 jobs and assist over 1.4 million Filipinos struggling with unemployment and income losses.”

The Department of Trade and Industry chairs the task force, with the Department of Labor and Employment and the Technical Education and Skills Development Authority as co-chairs. — Jenina P. Ibañez and Bianca Angelica D. Añago

July government debt hits record P11.6T as state taps local and dollar bond markets

August 31, 2021 | 9:12 pm

THE NATIONAL Government’s outstanding debt grew further to P11.61 trillion as of the end of July following a dollar bond issue and further tapping of domestic lenders, the Bureau of the Treasury (BTr) reported Tuesday.

Preliminary data from the BTr indicate that overall debt rose 4% month on month compared with the level booked at the end of June. It was 26.7% higher than the year-earlier total.

The debt stock has risen 21.3% from the end-2020 level of P9.8 trillion.

The government endeavors to maintain a balance of 70% domestic debt and 30% foreign to minimize exposure from external shocks like currency movements.

Outstanding domestic debt rose 2.3% from a month-earlier level to P8.12 trillion at the end of July following the issuance by the BTr of more government securities. Domestic borrowing rose 29.8% year on year and 21% compared with the ending debt balance in 2020.

The portfolio of government securities rose 2.4% from a month earlier to P7.6 trillion.

The government borrows from domestic and foreign sources to plug the budget deficit, which started to widen last year due to spending requirements imposed by the pandemic.

Outstanding external obligations rose 8.2% from a month earlier to P3.5 trillion at the end of July following a dual-tranche dollar bond issue and fluctuations in the value of the peso.

“The impact of both local- and third-currency exchange fluctuations against the US Dollar added P100.66 billion and P3.39 billion, respectively,” it said.

Overall foreign debt rose 20.1% from a year earlier. It has increased 12.6% since the end of 2020.

Foreign loans obtained by the government rose 4% month on month to P1.47 trillion, while the total for global bonds rose 11.4% to P2.02 trillion.

The government issued $3 billion (P149 billion) worth of securities on July 6 — $2.25 billion in 25-year instruments and $750 million worth of 10.5-year bonds. This raised the stock of dollar-denominated securities by 14.3% to P1.53 trillion at the end of July.

Euro-denominated bonds also rose 3.2% to P241 billion largely due to currency fluctuations, while samurai bonds rose 4.5% to P138 billion, and panda bonds were up 3% to P19.43 billion. Outstanding peso global bonds remained unchanged at P85.57 billion.

Debt guaranteed by the National Government rose 1.3% from a month earlier to P444.31 billion at the end of July after it guaranteed more foreign debt.

Guaranteed domestic obligations fell to P242.65 billion from P244.1 billion at the end of June, reflecting the retirement of some debt.

Guaranteed foreign debt rose 3.7% month on month to P201.65 billion.

“The higher level of guaranteed debt was due to the impact of local- and third-currency exchange rate fluctuations against the US dollar amounting to P6.07 billion and P1.25 billion, respectively, it said.

Budget planners have set a P3-trillion borrowing cap for this year.

The government’s outstanding debt is expected to hit P11.73 trillion by year’s end from P9.795 trillion at the end of 2020.

This is expected to rise further to P13.418 trillion at the end of 2022.

Economic managers project the debt stock to be equivalent to 59.1% of economic output by the end of this year, peaking at 60.8% in 2022. — Beatrice M. Laforga