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BTr fully awards reissued bonds as high liquidity boosts demand

THE Treasury bureau fully awarded the reissued 10-year bonds it offered on Tuesday. — WIKIPEDIA.ORG

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday and even opened its tap facility as the tenor’s yield dropped amid strong liquidity in the market.

The Bureau of the Treasury (BTr) on Tuesday borrowed P30 billion as planned via the reissued 10-year bonds. The auction was more than thrice oversubscribed, with total bids reaching P98.67 billion.

The Treasury also opened its tap facility to raise another P20 billion via the bonds to accommodate the excess demand and take advantage of the low rates seen yesterday.

The reissued 10-year notes, which have a remaining life of four years and eight months, saw its average rate go down by 36.4 basis points (bps) to 2.536% from the 2.9% fetched in the Nov. 17 auction.

National Treasurer Rosalia V. de Leon said the bond auction was met with strong reception from the market, as seen in the oversubscription and the low rates fetched.

“Abundant liquidity coupled with cautious sentiment pulls sentiment to the belly of the curve,” Ms. De Leon told reporters via Viber after the auction on Tuesday.

A bond trader, meanwhile, said the average rate fetched for the reissued bonds was well within the market’s expectation of a 2.5-2.55% range.

“Basically, [investors are] deploying liquidity, [and] the yield pickup is nice. In general, the market is very liquid, awash with cash, so they need it to earn interest,” the trader said via Viber.

Financial markets have been awash with cash since last year as companies hold back on spending and expansion plans and prefer to park their excess funds in safe assets such as government securities amid an uncertain economic environment due to the pandemic.

Liquidity has also gotten a boost from the accommodative stance of the central bank, which last year slashed benchmark interest rates to record lows and also trimmed the reserve requirement ratio of banks.

The BTr plans to borrow P140 billion from the local debt market this month: P80 billion via weekly auctions of Treasury bills and P60 billion from fortnightly T-bond offerings.

The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — Beatrice M. Laforga

SMC says its tollways are ready to go 100% cashless by Jan. 11

SAN MIGUEL CORP. (SMC) on Tuesday said its tollways are ready to go 100% cashless by Jan. 11 after it hit its target to open 156 new radio-frequency identification (RFID) installation stations before the end of December.

In an e-mailed statement, SMC President and Chief Operating Officer Ramon S. Ang said: “Back in November, and again in mid-December, we committed to open over 100 new RFID stations in various locations before the end of the year.”

“Even as we were preoccupied with soft-opening our Skyway 3 and then had a long New Year’s break, I’m happy to report to the public that we also reached our target 156 Autosweep RFID installation stations last Dec. 29,” he added.

With the additional RFID installation stations, SMC is no longer seeing long lines towards the end of Jan. 11, Mr. Ang noted.

The Transportation department earlier set Dec. 1 as the deadline for toll operators to implement cashless payments, but the transition period will end on Jan. 11.

Toll operators will still be required to have lanes for the installation of RFID stickers beyond Jan. 11.

“With the amount of stickers we have already issued over the past few months, particularly from November through December when we started increasing the number of stations, coupled with now 156 total RFID stations that are well spread out through Metro Manila and neighboring cities and provinces, we see no major problems in serving the remaining number of motorists without stickers yet,” Mr. Ang explained.

SMC operates the STAR (Southern Tagalog Arterial Road) Tollway, South Luzon Expressway, Skyway, NAIA Expressway, and Tarlac-Pangasinan-La Union Expressway.

Mr. Ang reiterated SMC will retain its installation activities and “even expand programs to reach villages and barangays.” — Arjay L. Balinbin

BSP receives first application for a digital banking license

THE BANGKO SENTRAL ng Pilipinas (BSP) has received the first application for a digital banking license following the release of a framework for the sector in November.

“The application is a partnership of local and foreign players,” BSP Deputy Governor Chuchi G. Fonacier said in a Viber message.

Aside from the first applicant, Ms. Fonacier said there are four more parties that have expressed interest in applying for a digital bank license.

“Initially, the MB (Monetary Board) has set a limit of five digital banking licenses,” she added.

BSP Governor Benjamin E. Diokno on Tuesday said they will assess applicants on a first come, first serve basis.

“We will closely monitor the number of digital banking licenses issued, considering the overall banking situation and the risks posed by these banks to the industry and the quality of prospective clients,” Mr. Diokno said in an interview with ABS-CBN News Channel on Monday.

The central bank in November approved a regulatory framework for digital banks, which sets it apart from other lender classifications such as universal, commercial, thrift, rural, cooperative, and Islamic banks.

Under BSP Circular No. 1105 issued in December, interested parties seeking to apply for a digital banking license need to put up a minimum capital of P1 billion to establish their presence in the country. The framework also allows currently established brick and mortar lenders to convert to digital banks.

Digital banks will likewise be distinguished for having all-online customer processes and transactions while only maintaining a main office for management, support operation, and as point of contact for regulators.

CIMB Bank Philippines, Inc. and ING Bank N.V. Manila are currently offering online-only retail banking services and have been enticing the market through higher interest rates than what traditional banks offer. East West Banking Corp. unit Komo and the Diskartech App of Rizal Commercial Banking Corp. are also offering similar services.

Mr. Diokno has said they see digital banks helping expand Filipinos’ access to financial services.

He said these lenders can help the central bank reach its goal to bring 70% of the country’s adult population into the financial system and to have at least 50% of payments, both in volume and value, done digitally by 2023. — Luz Wendy T. Noble

Unit of Global Ferronickel projects rise in ore reserves

ORE RESERVES of a Global Ferronickel Holdings, Inc. (FNI) subsidiary have climbed by 37% to 59.45 million wet metric tons (WMT) based on its latest estimates, the parent firm told the local bourse on Tuesday.

The figure represents FNI’s projection of proven and probable ore reserves for its unit Platinum Group Metals Corp. (PGMC), as of Oct. 15, 2020. The increase in reserves were attributed to the exploration activities in PGMC’s Cagdianao (CAGA) Nickel Expansion Project in Dinagat Island, Surigao del Norte.

“The estimate represents a 37% increase from the 43.3 million wet metric tons reported during the same period last year,” FNI said in a regulatory filing.

It added that the CAGA nickel project’s estimated mine life is at 10 years. The firm also detailed its plans to conduct more exploration activities, excavate other minerals and develop a portion of its mining site into a conservation area.

“Continuous exploration is being conducted, especially in CAGA 2, CAGA 3 and CAGA 4, to extend the mine life further and to search for other potential resource commodities such as limestone and chromite. We are also looking at developing CAGA 5 into a biodiversity conservation area,” Dante R. Bravo, the president of FNI, said in a statement.

FNI said that China is the current destination of its ore shipments, and that its higher-grade ores would be exported to Japan “when the need arose.”

In November, the company, through PGMC, inked a nickel supply deal with Chinese firm Baosteel. Under the agreement, FNI would supply 1.3 WMT of nickel ore this year.

In its third-quarter report, FNI’s net income rose by 94.51% to P1.36 billion year on year. The firm previously told the local bourse that its mining operations from July to September climbed by 33% to P4 billion compared with the value in 2019.

FNI is a holding firm with principal business interests in mineral resource exploration, and the mining and exporting of nickel ore.

Shares in FNI on Tuesday inched up 1.01% to close at P2.99 apiece. — Angelica Y. Yang

Coronavirus payouts rise to P1.98 billion

INSURANCE PAYOUTS related to the coronavirus disease 2019 (COVID-19) totalled P1.98 billion as of end-September 2020, based on a survey conducted by the Insurance Commission (IC).

Citing the results of its second survey assessing the impact of the COVID-19 pandemic on the insurance sector, the IC reported on Tuesday that payouts jumped from the P326.95 million recorded in the first survey conducted in April 16 to May 8, 2020.

The second round of the survey covered 111 insurance companies from May to Sept. 30, 2020. Of these firms, there were 24 life insurers, 44 nonlife firms, 23 mutual benefit associations (MBAs) and 20 health maintenance organizations (HMOs).

Broken down, total payouts were made up of P1.81 billion in contractual obligations and P284.43 billion paid ex gratia or payments made outside the terms of the policy.

Payouts by the HMO sector accounted for the largest chunk with P1.09 billion or 55% of the total, followed by the life insurance industry with P739.83- million payouts or 37%, MBAs with P219.63 million or 11%, and the nonlife sector with P41.71 million or two percent of the total.

“The reported payment of approximately P2 billion in COVID-19-related claims by the four regulated entities of this Commission, is a clear testament of such regulated entities’ financial resiliency notwithstanding the challenges posed by the pandemic. Such financial resiliency is amplified by the fact that some regulated entities have even gone above and beyond their contractual obligations by paying ex gratia settlements to our fellow Filipinos,” Insurance Commissioner Dennis B. Funa said in the statement.

Based on the type of benefits, most payouts were for outpatient and inpatient claims at P637.9 million (32% of the total) and P588 million (30%), respectively. Payouts for death benefits reached P553.31 million, making up 28% of the total, while other top benefits were personal accident, medical reimbursement, hospital income, travel, critical illness and hospitalization.

HMOs processed 89,536 COVID-19-related claims with a combined value of P867.25 million. The companies reported 98% or 87,813 claims have received payouts so far: P1.02 billion in contractual obligations and P71 million paid ex gratia.

The life insurance sector recorded 19,337 claims valued at P1.05 billion, 84% or 16,164 of which have been paid: P708.51 million based on the policy and P31.32 million paid ex gratia.

Meanwhile, nonlife insurers received 1,731 claims worth P331 million, where only 30% or 521 applications have been paid, with P28.05 million for contractual obligation and P13.66 million ex gratia.

Lastly, the MBA sector reported 5,248 COVID-19-related claims amounting to P109.54 million. Nearly all or 5,244 have been paid both in terms of policy (P51.18 million) and out of policy terms (P52.48 million).

“This commission is confident that the staggering five-fold increase in payment of COVID-19-related claims will serve to inspire consumer confidence in the four respondent industries and educate our fellow Filipinos of the benefits of availing the insurance and HMO products sold by said regulated industries,” Mr. Funa added. — B.M. Laforga

NCCA, Knowledge Channel work on educational videos

A COOPERATIVE project between the National Commission for Culture and the Arts (NCCA) and the Knowledge Channel Foundation, Inc. has resulted in 80 video lessons on reading and Filipino values.

During a press conference last month, the NCCA introduced Wikaharian, a video series starring Teacher Michelle and her team of puppets aimed at teaching Grade 1 students reading and grammar (particularly in Filipino). While some episodes have been floating about since at least October, new episodes are released via Knowledge Channel’s Facebook at 1 p.m. on Mondays and Fridays, according to the Knowledge Channel website.

Wikaharian is our first endeavor to integrate arts and culture content into subject areas such as reading and writing,” said Marichu Tellano, Deputy Executive Director of the NCCA.

Rina Lopez-Bautista, President and Executive Director of the Knowledge Channel, said that they began shooting the series prior to the coronavirus disease 2019 (COVID-19) lockdowns. While the series is available via the Knowledge Channel website and its social media accounts, the videos are also available offline on the Knowledge Channel in cable and satellite channels; as well as the Knowledge Channel Portable Media Library. “It’s an important step in helping children learn to read and instill among the young learners the awareness, the appreciation, and pride of Filipino beliefs and values,” she said.

Ms. Lopez-Bautista pointed to the recent tests issued by international bodies that ranked Filipino students well below their international peers in areas such as reading comprehension. “These videos come at a crucial time, as we face many challenges in improving the quality of basic education in our country; in light of our performance in all the international test results thus far,” she said. “By focusing our efforts on the foundational skills of early reading and numeracy, we can prepare our children better: not [just] for international benchmark tests, but more importantly, for life.”

Rep. Loren Legarda, who supports the project, agreed with the focus on foundational skills. “Cultural growth is actually what we need, and this, I believe, should start from the womb pa lang; binabasahan na dapat ng mga nanay ang mga bata (mothers should start reading to their children while they’re still in the womb).”

Catch Wikaharian and other online schooling programs at facebook.com/knowledgechannel and at youtube.com/knowledgechannelorg. — J.L. Garcia

IP E-Game to acquire stakeholdings in Fastcash, I-Pay

IP E-Game Ventures, Inc. has signed agreements for the acquisition of shares in two companies to support its expansion efforts.

In two separate regulatory filings, IP E-Game said it had executed term sheets for the acquisition of 60% of the capital stock of Fastcash Remittance, Inc., and for a minimum of 47% up to 80% of the capital stock of I-Pay Commerce Ventures, Inc.

The company said the target value of its term sheet with Fastcash is at $3.6 million.

“Selling shareholders of Fastcash will receive payment in the form of IP E-Game shares translating to approximately 6.04% of its shareholdings post-issuance,” the disclosure said.

“On the other hand, IP E-Game will acquire all the shares held by the Philippine shareholders of Fastcash, which in turn will translate to 60% ownership in Fastcash,” it added.

According to the disclosure, Fastcash is a special purpose vehicle that controls 60% of MYEG Philippines, a payment service provider that operates an over-the-counter network of 50,000 locations and offers credit card, debit card, and e-wallet payment processing capabilities.

“With the growth of online transactions, MYEG Philippines’ payment gateway is poised for continuous growth,” the disclosure said.

Meanwhile, the company said I-Pay’s selling shareholders will receive payment in the form of IP E-Game’s shares translating to around 4.03% to 6.67% of its shareholdings post-issuance.

IP E-Game said I-Pay is a foreign exchange and remittance company that operates a sub-agent base in almost 1,000 physical locations.

According to its website, I-Pay provides e-payment services for major government agencies in the Philippines, adding that it is a direct agent of Western Union.

IP E-Game said it acquired shares in I-Pay since it sees that remittances will continue to be a pillar of the Philippine economy.

“Remittances are a key driver in private consumption expenditure, benefiting a wide range of sectors such as retail, housing, telecoms, education, and consumption tax,” the disclosure said. — Revin Mikhael D. Ochave

Lenders adjust branch banking strategies as pandemic causes client behavior shift

BRICK-AND-MORTAR lenders are refocusing their branch banking strategies this year amid the coronavirus pandemic that has caused their customers to shift to using their digital services.

“We are actively looking for ways to efficiently operate our branch network and to shift the roles of our branches from being transactional to being sales centers of highly complex financial services,” Philippine National Bank President (PNB) and Chief Executive Officer (CEO) Jose Arnulfo A. Veloso said in an e-mail.

At the height of the lockdown last year, only half of the bank’s 716 branches nationwide were operating on a rotation basis at any given time, he said.

To date, nearly all of PNB’s branches are already operating, but safety continues to be a priority for clients as the pandemic continues.

Mr. Velasco said they saw an increase in deposits and digital transactions from customers amid the crisis. This trend will continue in the coming years, he added.

“We will see less over-the-counter transactions. Clients will also expect more complex transactions such as investments, insurance, and loans to be offered online,” Mr. Veloso said.

Meanwhile, Rizal Commercial Banking Corp. (RCBC) closed down 66 branches from their network after “50-60% of branch transactions disappeared” as customers preferred online transactions, RCBC President and CEO Eugene S. Acevedo said in a December briefing.

Mr. Acevedo said they have been downsizing their workforce. The bank has been boosting its digital capabilities and has launched its Diskartech in July last year, an app that offers digital services such as bills payment and a basic deposit account where customers can register through an all-online process.

For its part, BDO Unibank, Inc. said they saw a “steady shift” to digital transactions in Metro Manila and highly urbanized areas, while clients in provinces continued to prefer branch-based banking.

“We will continue to be on the lookout for good sites to open branches and evaluate if a location brings opportunities for us to serve more clients,” the Sy-led bank said in an e-mail.

BDO customers opt for branch visits for transactions like deposits, withdrawals, bills payment, and account opening, the lender said.

This year, BDO said its rural banking unit BDO Network Bank is set for network expansion and branch capacity enhancement to boost lending to small businesses.

“Branch-based transactions are still preferred by clients of our rural bank subsidiary which caters to underserved communities that operate in predominantly cash markets,” BDO said.

‘PHYGITAL’ SHIFT
While banking in a post-pandemic world is unlikely to abandon the digital shift that was simply accelerated by the virus, some clients are still expected to prefer in-person transactions in branches as Filipinos are “one of the most tactile people in the world” who value physical contact, Bank of the Philippine Islands (BPI) President and CEO Cezar P. Consing said during the BusinessWorld Virtual Economic Forum held in November.

In BPI, off-branch transactions including those done through automated teller machines and mobile banking made up 80% of the total from 90% during the lockdown, he said then. These transactions made up 70% of the total prior to the pandemic.

Mr. Consing noted that branch banking made up for bulk of transactions in terms of value despite the rise of the volume of e-payments.

“Come the vaccine, I think it’s (banking transactions) a combination of high tech and high touch… “phygital,” which is physical and digital,” he said.

The central bank wants e-payments to make up 50% of the country’s total transactions both in value and volume by 2023.

In 2018, e-payments made up 10% of the total transactions in terms of volume and 8% in terms of volume, according to a study by the Better Than Cash Alliance. — L.W.T. Noble

The recent appearance of unexplained monoliths offer connections to the ancient past

IN November, news outlets reported the puzzling appearance of several peculiar, highly polished metal monoliths in remote landscapes around the world.

Some, naturally, blamed aliens. Others saw similarities with Stanley Kubrick’s iconic metal monolith of 2001: A Space Odyssey.

As archeologists, we watched these events with some amusement. Imposing, isolated standing stones have been important in many historical cultures of the world, from Mongolia to the British Isles.

Our expertise lies in the monoliths of the South American Andes: monumental, human-like figures carved of single blocks of stone that are remarkable not only in their form and style, but also in the stories they tell.

The monoliths of highland Bolivia served as the focal point of public religious rituals as far back as 800 BCE and have remained a source of fascination ever since. When Inca armies conquered this area in the 15th century, they saw them as leftovers from the world’s creation.

In the 16th century, the next set of invaders — Spanish conquistadors — were told that they were the work of giants. Over the next centuries, they were dynamited to build railroads, stolen by foreign collectors and even used as target practice by the Bolivian army.

Since the early 20th century, however, a number of new monoliths have come to light during excavations by Bolivian and foreign archeologists, and by local residents during the course of everyday activities such as farming fields and building houses. Many dating to over 2,000 years ago, some quite elaborately carved, have been found throughout the region.

The best known monoliths are those of the UNESCO site of Tiwanaku in Bolivia, a place that was famous in its heyday (400-1000) for attracting pilgrims from across the Andes despite its lung-crushing setting at 3,800 meters above sea level. Many of these volcanic stone monoliths are intricately carved. The largest of these, the Bennett Monolith — recently returned to its original site — stands a staggering seven meters high. Other smaller monoliths are found scattered around the site, but also in house patios in the modern town.

The opportunity to interact with monoliths may have been the main attraction of Tiwanaku for its religious devotees. For many Indigenous Peoples of the Andes, stones and mountains are understood as powerful beings that can intervene in human lives.

And like the mysterious metal monoliths, the importance of the monoliths is associated with their natural environments. Chemical analyses confirm that the stone for Tiwanaku monoliths comes from mountains that the Aymara people see as sacred, living beings with distinct personalities. In the past, devotees likely sought to interact with these beings in their form as monoliths under altered states of consciousness through drugs, alcohol or musically induced trance.

The principal monoliths of Tiwanaku hold in one hand a drinking vessel — similar to a modern pilsner glass — and in the other a flat tablet for inhaling hallucinogenic snuff. Archeologists have found both types of artifacts, and even psychotropic drugs, at Tiwanaku and other sites in Bolivia, Chile and Peru.

When Tiwanaku’s government collapsed around 1000, monoliths appear to have borne the brunt of people’s anger. Many were decapitated, defaced, or broken apart. One broken monolith was united in the late 1970s with its other half: the 998-kilogram upper portion was found 220 kilometers away, across Lake Titicaca, and identified via microscopic analysis. Other monoliths survived, only to suffer under later Spanish invaders, who pried off gold plating and, in some cases, inscribed them with crosses and dates, and ceremoniously buried them.

For many Bolivian Aymara, stone monoliths continue to live in the present. Current residents of the town near Tiwanaku have told our collaborators of monoliths coming to life at night, wandering the streets. In 2006, Evo Morales — Bolivia’s first Indigenous president — was sworn in at Tiwanaku under the watchful eye of the Ponce Monolith.

Elsewhere, new monoliths are still being born.

In 2007, sculptor Ruben Herrera signed a contract with the municipality of Guaqui to chisel a replica of the Bennett Monolith. He extracted a 20-ton rock from a nearby hill using traditional techniques. Despite working for 20 months, he was never paid. The monolith remains in its place of production, but is now incorporated into a property wall.

Villagers told the press that Mr. Herrera had a sickness caused by the stone entering his body, and he could only be healed by local shamans (or yatiris). Today, people place candles and flowers at the foot of the replica, and yatiris pour grain alcohol on his work.

In our current moment, we are becoming ever more reliant on new and remote technologies. It seems incredible that we still find ourselves entranced by monoliths of metal and stone and the qualities of objects that seem to emerge magically out of the earth.

As archeologists, however, we don’t find this mystifying at all. Artifacts and art like the animate Andean monoliths possess an extraordinary power to capture our attention even as civilizations rise and fall, and remind us of our connections to the places we inhabit. — Reuters

 

Andrew Roddick is an Associate Professor of Anthropology at McMaster University while Anna Guengerich is an Assistant professor at Eckerd College.

Grab seeks $750-million term loan, reports 78% jump in revenue last year

SINGAPORE — Southeast Asian ride-hailing and food delivery firm Grab is seeking a $750-million term loan, a term sheet showed on Monday after it announced that total group net revenue jumped by about 70% year on year in 2020 and had recovered to comfortably above pre-pandemic levels.

“In addition, we’ve hit our growth and profitability targets, and reached several new milestones,” Ming Maa, Grab’s president, said in an e-mailed newsletter update on the business.

Hours after the update, Grab and one of its subsidiaries were seeking a five-year loan of $750 million for general corporate purposes, according to a term sheet seen by Reuters.

Grab declined to comment on the term sheet.

Backed by global investors including Softbank Group Corp., Grab has evolved from a ride-hailing app operator to a one-stop shop for services such as food delivery, payments, and insurance, helping the company to become Southeast Asia’s most valuable start-up with a valuation of more than $15 billion.

“We’ve continued to be disciplined with spending and prudent in stewarding our shareholder capital, with monthly EBITDA (earnings before interest, tax, depreciation and amortization) spend being reduced by approximately 80% over the last 12 months,” Mr. Maa said.

Grab said in October that third-quarter group revenue had risen to more than 95% of pre-coronavirus levels and its food business accounted for more than 50% of revenue.

The company’s food delivery business, in which net revenue nearly tripled year on year in the third quarter, is expected to achieve breakeven by the end of 2021, it said on Monday.

Sources have said that investors in Grab and Indonesian rival Gojek are backing a merger of the two, but a deal is far from finalized. Both companies have talked up their strengths. — Reuters

Pepsi-Cola streamlines business operations, now fully digital

PEPSI-COLA Products Philippines, Inc. (PCPPI) has implemented the SAP Enterprise Management System in efforts to improve its business operations and operational management.

In a statement on Tuesday, the company said that with the new management system, it now has an end-to-end single data platform to process data, which is more efficient since information is translated into real-time insights and analytics.

It added that the new system provides for better financial and operational management, and enhanced customer experience amid the coronavirus disease 2019 (COVID-19) pandemic.

“This aids in making sounder business decisions, as SAP is among the market leaders in enterprise management software, with 77% of the world’s transaction revenue touching a SAP system,” the company said.

The company said it has integrated eight core business procedures and existing systems to create an end-to-end enterprise management tool that covers 18 business units in more than 100 locations.

PCPPI President and Chief Executive Officer Frederick D. Ong said the new management system has reinforced the company’s digital transformation despite the pandemic.

“We envision connecting faster, more efficiently with our people and customers during these challenging uncertain times. It is their best interest that we keep to heart and is at the center of our purpose,” Mr. Ong said.

The company said the implementation project was made possible by Fasttrack Solutions (FTSI), the sole platinum partner of SAP in the Philippines.

In December, PCPPI announced that the Philippine Stock Exchange (PSE) has approved the petition to delist its shares.

The company decided to delist voluntarily after its public ownership declined to 2.1%, far from the 10% minimum requirement of the PSE. — Revin Mikhael D. Ochave

A $13-trillion crisis-era debt bill comes due for the biggest economies

THE Group of Seven nations plus key emerging markets face the heaviest bond maturities in at least a decade. — BW FILE PHOTO

THE WORLD’S biggest economies shouldering record debt burdens are about to confront an unwelcome legacy of the financial crisis: a $13-trillion debt bill.

The Group of Seven nations plus key emerging markets face the heaviest bond maturities in at least a decade, much of them borrowings to dig their economies out of the worst slump since the Great Depression. According to data compiled by Bloomberg, these governments may need to roll over 51% more debt than in 2020.

The good news is that both central banks and investors are on their side. Policy makers facing lingering economic challenges from the pandemic are likely to stay accommodative — and keep borrowing costs low. Bonds remain a sought-after haven amid the virus’s rising toll on health and economies.

“Government debt ratios have exploded, but I believe that the short-term worrying over a rising debt is fruitless,” said Gregory Perdon, co-chief investment officer at Arbuthnot Latham. “Debt is leverage and assuming it’s not abused, it’s one of the most successful tools for growing wealth.”

Refinancing needs are the biggest in the US, with $7.7 trillion of debt coming due, followed by Japan with $2.9 trillion, according to Bloomberg data. China’s tab rises to $577 billion from $345 billion last year. In Europe, Italy has the heaviest bill of $433 billion, followed by France’s $348 billion. Germany has $325 billion due versus $201 billion last year. Not all these maturities will necessarily be extended by fresh borrowings.

To be sure, growth lift-off is still expected to translate into higher yields, with the median of economists surveyed by Bloomberg calling for a 10-year Treasury yield of 1.24% by the fourth quarter.

Yet the onus remains on the world’s policy makers to keep rates low to foster the global economic recovery. The Federal Reserve is on pace to buy nearly half the $2 trillion of net supply TD Securities expects the US government debt to issue this year.

In Europe, the result of central bank bond buying will help create a supply shortfall of €133 billion ($164 billion), according to Jefferies International.

“The practical reality is that debt levels and rates are linked, because most of the developed world cannot afford higher interest rates,” said Steven Major, the global head of fixed-income research at HSBC Holdings Plc. — Bloomberg