THE DEPARTMENT of Finance is seeing some signs of economic recovery, even as the virus continues to be a threat to the outlook.

Finance Undersecretary and Chief Economist Gil S. Beltran noted in an economic bulletin on the country’s first-quarter gross domestic product (GDP) data that GDP rose by 0.26% in January to March 2021 from the October to December 2020 period, signalling a slight improvement.

“Recovery, however, continues to be threatened by risks posed by the virus. This health issue should be effectively addressed, and it is encouraging that the much-needed vaccines have started arriving,” Mr. Beltran said in the statement.

Finance Secretary Carlos G. Dominguez III said the government might need to spend another P75 billion until 2022 to fund its expanded vaccination program that will include booster shots for 85 million Filipinos and also cover teenagers and adults.

Based on data from the US-based Center for Strategic & International Studies, the Philippines has fully inoculated 517,113, only equivalent to 0.5% of its population.

This makes the country a laggard in the region, besting only Brunei (0.2%), Myanmar (0.1%), and Vietnam (0%) in terms of the ratio of vaccinated people to the population.

The government wants to vaccinate 70 million Filipinos by end-2021 to achieve herd immunity. However, at the current pace, the Philippines would only be able to vaccinate 75% of its population after 6.4 years.

GDP shrank by 4.5% on an annual basis in the first quarter. This marked the fifth consecutive quarter of the country in recession.

The government targets GDP growth of 6.5% to 7.5% this year following the record 9.6% contraction in 2020 due to the pandemic. It will review its macroeconomic assumptions next week.

THE HOME Development Mutual Fund (Pag-IBIG Fund) booked a higher net income of P8.332 billion in the first quarter, supported by savings in operation costs due to the new normal.

Pag-IBIG Fund’s net profit increased by 3.7% from the P8.028 billion recorded in the same period in 2020, based on its financial statement.

The agency’s gross income stood at P12.3 billion, down by 1.37% from the P12.472 billion a year earlier. This was on the back of lower service and business earnings.

Meanwhile, Pag-IBIG Fund’s expenses dropped by 10.7% to P3.967 billion from P4.443 billion on lower personnel, maintenance and other expenses amid the pandemic.

The new normal helped the firm post lower costs, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said in an online briefing.

“We’ve saved a lot. The new normal actually is giving us a lot of opportunities to save,” he said.

The fund’s assets increased by 10% to P678.244 billion from P614.749 billion.

During the quarter, the mandatory regular savings of the fund rose by 13% to P9.1 billion.

Meanwhile, the voluntary MP2 savings climbed by 43% to reach P6.7 billion in the first three months of 2021 from P4.67 billion last year.

The agency also released housing loans worth P20.94 billion during the period, rising by a third from the P15.77 billion booked a year ago.

THE DEPARTMENT of Energy (DoE) has cleared service contract (SC) 55 consortium’s request to put its offshore west Palawan petroleum block under force majeure for one year, based on disclosures from two firms.

In a regulatory filing on Friday, the Ayala Group’s oil and gas exploration unit ACE Enexor, Inc. said its subsidiary Palawan55 Exploration & Production Corp., received DoE’s letter on May 11. Palawan55, which holds majority or 75% participating interest in the consortium, is the operator of the SC 55,

The DoE approved the consortium’s request to place the block under force majeure.

“The letter…states that the timeline of the SC 55 Appraisal Period will be adjusted accordingly, and the end of the period will be adjusted by the same amount of time that SC 55 was on Force Majeure,” ACE Enexor said.

In a separate regulatory filing, Pryce Corp. said this will allow the consortium to plan and prepare ahead for unforeseen events brought about by the prolonged global health emergency. Pryce Gases, Inc., a unit of Pryce, holds a 25% participating interest in SC 55.

The consortium previously asked the Energy department to declare the block under force majeure as a definitive drilling plan has yet to be made.

Pryce explained the SC 55 consortium originally planned to drill at least one well in the area within the first two years of its appraisal work program which took effect on April 26, 2020.

Last month, ACE Enexor’s President and Chief Operating Officer Raymundo A. Reyes announced a drilling proposal for the exploratory well is in the works. He said they were drafting a comprehensive technical document, which details plans for the construction of the borehole and assessing rock formations and fluids in the subsurface.

Once the proposal is completed, it will be submitted to the DoE for clearance.

On Friday, shares of ACE Enexor remained unchanged at P17 apiece, while Pryce shares also closed steady at P5.50 each. — A.Y. Yang

PHILIPPINE Infradev Holdings, Inc. on Friday received its first tunnel boring machine (TBM) for the Makati subway project, its chief executive officer said.

Philippine Infradev President and Chief Executive Officer Antonio L. Tiu in a tweet on Friday said that the company received the first of five tunnel boring machines for the Makati subway (MkTr) project.

“Our (Infradev Chairman Jin Hua Ren) will accept the TBM in simple ceremonies,” he said.

Construction of the Makati City subway station 5, the main site where tunnel boring machines will be set up, could happen by 2023.

Infradev aims to finish underground civil works at the main site within the two-year period.

The company earlier said its wholly-owned subsidiary Makati City Subway, Inc. executed a legally binding term sheet with Richer Today, Inc. on March 9 to finance the project and acquire lots in and around the station.

Infradev plans to finish the project in seven years. — J.P. Ibañez

THE HOUSE Committee on Banks and Financial Intermediaries approved a proposed law that will boost rural lenders in the Philippines.

In a hearing on Friday, the committee approved with amendments the Consolidated Bill and the Committee Report on House Bills 4256, 4622, 5143, and 8359 or the proposed Rural Banking Act of 2021.

The bill and report were products of the panel’s technical working group headed by the Bangko Sentral ng Pilipinas.

The measure will still be up for amendments after committee member Lanao del Norte 2nd District Rep. Abdullah D. Dimaporo said the system must focus on making the banks accessible and suitable for the poor.

“I don’t like this bill because banks should be catering to the people. If we think of how to make them successful, to me that is different because a rural bank is for the smaller people, the poor. The bigger banks, I doubt the farmers and fishermen will feel easy into a foreign-owned bank that will be curated with depositors with money,” Mr. Dimaporo said.

“The purpose of the rural bank is to cater to the smaller people who are in the rural areas… The rural banks are mostly established and some of them experience where they are, their places are becoming a big population and big cities and rural banks in those places would like to be big, they will apply to the central bank to become a commercial bank,” he added.

The panel’s chair, Quirino Rep. Junie E. Cua said while he agrees with the concerns of Mr. Dimaporo, the bill will boost the viability of the rural banks to help them cater to the unbanked and underbanked.