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Peso strengthens vs dollar on eased restrictions

THE PESO strengthened further on Monday as the government eased restriction measures to help boost the economy while managing the pandemic.

The local unit closed at P48.51 versus the dollar on Monday, rising three centavos from its P48.54 finish on Friday last week, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s session at P48.56 per dollar which was also its weakest showing for the day. Meanwhile, it reached an intraday high of P48.51 against the greenback.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message that the peso appreciated as business activities are expected to pick up as more people will now be able to travel for work.

“The peso was stronger after the latest moves by the government to further open the economy with more public transportation systems, which could help improve economic recovery prospects,” Mr. Ricafort said.

The Land Transportation Franchising and Regulatory Board approved the reopening of 28 more jeepney routes in Quezon City, Manila, Makati and Muntinlupa starting yesterday. This means 1,159 more jeepneys in these areas are now able to ply their routes.

The Department of Transportation has also shortened the required distance between passengers of trains to increase their capacity.

Meanwhile, a trader said in a Viber message that the signing of the Bayanihan to Recover as One Act or Bayanihan II, the second economic stimulus measure of the government amid the coronavirus pandemic, also improved market sentiment.

For today (Sept. 15), Mr. Ricafort expects the peso to range from P48.50 to P48.60 versus the dollar while the trader sees the local currency moving from P48.45 to P48.65. — KKTJ

COVID-19 cases near 270,000; new test rules for tourists eyed

THE DEPARTMENT of Health (DoH) reported 4,699 coronavirus disease 2019 (COVID-19) infections on Monday, bringing the total to 265,888.

The death toll rose by 259 to 4,630, while recoveries increased by 249 to 207,504, it said in a bulletin.

There were 53,754 active cases, 88.4% of which were mild, 8.2% did not show symptoms, 1.3% were severe and 2.1% were critical, it said.

Metro Manila had the highest new cases with 1,498, followed by Cavite with 221, Bataan with 198, Bulacan with 185 and Batangas with 176, the agency said.

Most of the newly reported deaths came from Metro Manila with 154, followed by Central Visayas with 55, the Calabarzon region with 28, Eastern Visayas with, and the Bicol region with three. Three migrant Filipinos also died.

Central Luzon, Zamboanga Peninsula, Northern Mindanao and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) each reported two deaths. Western Visayas, the Cordillera Administrative Region and Caraga region reported one death each. The newly reported deaths occurred from April to September, DoH said.

The country’s death rate for the coronavirus stood at 1.74%, lower than 3.16% worldwide. The infection rate was at 10.56%, higher than the World Health Organization’s (WHO) less than 5% benchmark.

It now takes 10.71 days for cases to double and 15.36 days for deaths to double, DoH said. More than 2.9 million people have been tested  for COVID-19, it added.

Also on Monday, Health authorities said they would change the rules on COVID-19 rapid antigen tests for tourists after the World Health Organization discouraged their use at airports and other points of entry.

“We will again undergo this series of consultations and most specifically we need to present again to the Inter-Agency Task Force this revised version as a result of these recommendations coming from WHO,” Health Undersecretary Maria Rosario S. Vergeire told an online news briefing.

The government earlier recommended the use of rapid antigen tests for tourists, but DoH must now revisit this after the WHO guidelines, she said.

WHO on Sept. 11 said it does not recommend rapid antigen tests for border screening because the prevalence of the coronavirus is “highly variable” among travelers. “Positive and negative tests would require confirmatory testing” for decision-making, it said.

Ms. Vergeire said further study was needed because there is evidence that rapid antigen tests could be done with conditions.

She said DoH would probably present its recommendations by Thursday at the latest so the new guidelines could be issued next week.

Presidential spokesman Harry L. Roque last week said the government allows the use of rapid antigen tests for domestic tourists without symptoms as a pre-boarding requirement. — VMMV

Health groups buck plan to relax social distancing measures

A GROUP of medical societies has opposed a government decision to relax social distancing rules in public utility vehicles, which it said could lead to a fresh spike in coronavirus infections.

“It’s too early,” Antonio Dans of the Health Professionals Alliance Against COVID-19 told an online briefing on Monday, even as he noted that social distancing measures have to be relaxed eventually to open the economy further.

“When we look at the curve of this pandemic, it shows that it’s too early to relax social distancing rules, otherwise cases could surge and our recovery will slow,” he said in Filipino.

He also said they continue to talk to government officials to ensure the right policies are in place to address issues on health and the economy during the pandemic.

The Department of Transportation (DoT) on Saturday said it would relax the distance between passengers from a meter to 0.75 meter starting Monday, 0.5 meter on Sept. 28 and 0.3 meter on Oct. 12 to cater to more passengers.

The Department of Health (DoH) on Sunday urged Filipinos to be “extra vigilant” in places where they can’t observe social distancing and if possible, use transportation or join activities where they can maintain a one-meter distance from others.

It reminded the public to practice health protocols and for senior citizens and people who are immunocompromised to stay home.

Meanwhile, Transportation undersecretary Artemio U. Tuazon, Jr. said that the latest protocol was meant to optimize passenger capacity in public transportation. He also said this was because other precautionary measures are taken before one can commute.

“We are not just reducing social distancing,” he told a separate online briefing on Monday in Filipino. “We are implementing several protocols.”

The risk of transmitting the coronavirus is slow as long as physical distancing is coupled with the mandatory use of face masks and shields and passengers refrain from speaking, Mr. Tuazon said.

Health experts said a meter or more of physical distancing was needed to reduce the risk of getting the virus.

Presidential spokesman Harry L. Roque told a news briefing they would discuss the protocol again at the next meeting of the inter-agency task force against the coronavirus.

Meanwhile, Mr. Tuazon said the Land Transportation Franchising and Regulatory Board (LTFRB) would issue the rules this week allowing provincial buses to operate again in Metro Manila. — Vann Marlo M. Villegas and Gillian M. Cortez

State of emergency may be extended, palace says

THE PRESIDENTIAL palace on Monday said it would probably extend the effectivity of a proclamation putting the country in a state of emergency amid a coronavirus pandemic.

President Rodrigo R. Duterte might release another order for the extension, his spokesman Harry L. Roque told an online news briefing on Monday. The proclamation will lapse on Sept. 16.

“Most likely, while there is no COVID-19 vaccine yet, the state of health emergency will continue,” he said in Filipino.

Mr. Duterte signed Proclamation 929 on March 16 declaring a state of calamity in the Philippines due to the COVID-19 crisis.

The Department of Budget and Management this week said the local disaster agency had endorsed an extension to the President.

Budget officials earlier ordered local governments to use COVID-19 funds by Sept.16 unless the President releases a new proclamation extending the state of national emergency.

The President locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. The Philippine has one of the longest lockdowns in the world. People should stay home except to buy food and other basic goods, he said. 

Regional Updates (09/14/20)

Metro Manila mayors recommend closure of cemeteries during traditional visiting days

THE METRO Manila Council, composed of the 17 mayors in the country’s capital, has recommended the closure of all public and private cemeteries during the traditional visiting period of November 1 and 2. The recommendation will be presented to the national task force that issues policies and measures on the coronavirus response. In a press conference Monday, Metropolitan Manila Development Authority (MMDA) General Manager Jose Arturo S. Garcia, Jr. said the mayors of the 16 cities and one municipality also agreed to let the task force decide on the closure period, which they initially proposed to be for one week from October 28 to Nov. 4. “We will let the IATF (Inter-agency Task Force) decide on their preferred date of closure of cemeteries during the All Saints Day holidays,” Mr. Garcia said.

EARLIER ORDERS
Last week, the mayor of Manila City, Francisco M. Domagoso, was the first to issue an order closing cemeteries within his jurisdiction from Oct. 31 to Nov. 3 to avoid the usual large crowds during the observance of All Saints’ and All Souls’ Day. San Juan City Mayor Francisco Javier M. Zamora followed suit. There are at least 15 major public and private cemeteries in Metro Manila. Several other local government chiefs outside Metro Manila have issued similar closure orders, including Angeles City Mayor Carmelo G. Lazatin, Jr. and Cebu City Mayor Edgardo C. Labella.

Nationwide round-up

13 hospitals approved for WHO solidarity trials on coronavirus treatment

THIRTEEN HOSPITALS have been given final approval for participation in the World Health Organization’s (WHO) solidarity trial on treatments for coronavirus disease 2019 (COVID-19). Science and Technology Secretary Fortunato T. de la Peña, in a briefing on Monday, announced the list composed of nine medical institutions in Metro Manila, two in Cebu City, and one each in the cities of Cavite and Davao. These are: University of the Philippines-Philippine General Hospital (UP-PGH), Manila Doctors Hospital, San Lazaro Hospital, Lung Center of the Philippines, St. Luke’s Medical Center-QC, Research Institute for Tropical Medicine, Makati Medical Center, The Medical City, St. Luke’s Medical Center-BGC, Vicente Sotto Memorial Medical Center combined with Chong Hua Hospital, De La Salle Health Sciences Institute, and Southern Philippines Medical Center. Government-run UP-PGH will be the main implementer of the trials, which is set to start later this year. Mr. de la Peña said they are waiting for the WHO List of Protocols which could be released in October. The WHO solidarity trials, with more than 100 countries participating, will test the safety and effectiveness of four possible therapies in treating COVID-19. — Gillian M. Cortez 

Scholarships for med students bill approved on 3rd reading

THE SENATE on Monday approved the measure granting scholarships to medical students on third and final reading. With 22 affirmative votes and no negative vote, Senate Bill No. 1502, the Doktor Para sa Bayan bill, hurdled the chamber. It was among the priorities of Senate President Vicente C. Sotto III for the 18th Congress. “My vision for this measure, which is now called the ‘Doktor para sa Bayan’ Act, is to help financially-challenged but deserving students to pursue their dreams of becoming medical doctors to serve our country and our countrymen,” Mr. Sotto told reporters over phone message on Monday. “This measure comes at the most opportune time as our country continues to battle against the devastating health impacts of the coronavirus disease.” In its last version, the bill proposes to establish a Medical Scholarship and Return Service Program for Filipino students in state universities and colleges. It will cover tuition fees, allowances for books, school supplies, uniform, and boarding house accommodation among others. Scholars who eventually secure their license are mandated to serve the government public health office or at a state-owned hospital within one year after passing the licensure exam. —  Charmaine A. Tadalan 

Petitioners oppose gov’t move to cancel oral arguments on anti-terror law

PETITIONERS AGAINST THE Anti-Terrorism Act opposed the move of the government’s counsel to cancel oral arguments. In a joint motion to the Supreme Court, petitioners led by Bagong Alyansang Makabayan and veteran activists as well as by youth leaders said cancelling the oral arguments “will be a disservice to the overwhelming interest in these cases.” They said the public has the right to examine how the Office of the Solicitor General will defend the assailed law.  “The oral arguments are vital not only for hearing the parties on their respective positions, but also for the Honorable Court to fully ascertain the issues at hand,” the motion read. They also said that the court is capable of holding the oral arguments, noting the adjustments it already implemented amid quarantine restrictions such as videoconferencing for court hearings. The law, which took effect July 18, is being questioned in at least 30 petitions before the high court. — Vann Marlo M. Villegas

Solons move to increase vice president’s budget

LAWMAKERS ASSURED Vice President Maria Leonor G. Robredo of augmenting her office’s 2021 budget, which stands at P679 million under the proposed government expenditure program for next year. The 2021 allocation is also 41% lower than this year’s P708 million. Members of the House of Representatives appropriations committee cited the efforts of Ms. Robredo’s office in emergency response, social services, and livelihood development.  Negros Oriental 1st District Rep. Joceylyn Sy-Limkaichong, the committee’s vice chair, called on her colleagues to “fill in the gaps” and increase the budget of the Office of the Vice President (OVP). Cagayan De Oro City Rep. Rufus B. Rodriguez moved to give the OVP an additional P130 million, while Bayan Muna Rep. Ferdinand R. Gaite proposed to give it at least P1 billion. Meanwhile, the Office of the President’s P8.238 billion budget was approved based on the customary “inter-parliamentary courtesy,” but not before its intelligence and confidential funds was questioned by several lawmakers. Davao City 3rd District Rep. Isidro T. Ungab moved to terminate the hearing, saying that an inter-parliamentary courtesy must be accorded to the President’s office as practiced in past budget hearings. Those who scrutinized the budget are members of the Makabayan bloc in the House of Representatives. Deputy Executive Secretary for Internal Audit Alberto A. Bernardo defended the intelligence fund, citing that it is necessary to combat terrorism, especially amid the pandemic. — Kyle Aristophere T. Atienza

Filipinos would cycle to work if there were safer bike lanes — DoLE study

PHILSTAR/MICHAEL VARCAS

MOST WORKING Filipinos want safer bike lanes and if such road systems were available, they would cycle to their job site even if there were other public transport options available, according to a study conducted by the Labor department. In a statement on Monday, the Institute for Labor Studies (ILS), the research arm of the Department of Labor and Employment (DoLE) said,  “Majority of the workers are in favor of having more bike lanes on paved roads, bike paths, and more secured bike parking. The presence of bike lanes and their safety on road are also among the foremost concerns of bike riders.” The ILS study had 1,119 respondents, mostly from Metro Manila. Of the total respondents, 78% said they will still use bicycles going to work even if there are other modes of mass transportation available, with 85% counting health benefits as the main reason for cycling. The ILS also reported that out of the 813 respondents who used a bicycle within the past six months, 58% did so  going to and from work. The ILS research is part of the Bike-to-Work Project of the Labor department, wherein it will distribute bicycles. — Gillian M. Cortez 

BSP rate cuts totaling 75 bps seen likely in fourth quarter — Nomura

THE Bangko Sentral ng Pilipinas (BSP) will likely reduce rates by a further 75 basis points (bps) cut in the fourth quarter to provide support to the economy, amid constraints on the fiscal side of the economic stimulus program, Nomura Global said.

“We still expect an additional 75 bps in rate cuts in Q4 due to a weak recovery, the risk of a fiscal cliff and inflation well within the target due to the negative output gap persisting,” Nomura Global said in a note issued Monday.

The Monetary Board has three meetings left this year, all falling within the fourth quarter — on Oct. 1, Nov. 19, and Dec. 17.

In its previous policy review on Aug. 20, the Monetary Board decided to keep policy rates steady to allow time for the financial system to fully digest the prior 175 bps worth of rate easing earlier this year to support the economy during the pandemic.

With August inflation at 2.4% and the overnight reverse repurchase currently at a record low of 2.25%, the Philippines has crossed over into negative real interests. Lending and deposit facilities are also at record lows of 2.75% and 1.75%, respectively.

Because the fiscal stimulus is small relative to the size of the economy, Nomura Global said it is pricing in the 75 bps rate cut in the coming quarter.

On Friday, President Rodrigo R. Duterte signed the P165.5-billion Bayanihan II bill which will fund the government’s response to the coronavirus crisis.

“The total size is just 0.9% of GDP and does not meaningfully raise spending on key items such as capital expenditure, which were catalysts of private investment spending in the recent past,” Nomura Global said.

Nomura Global added that the Federal Reserve will continue to keep short-term interest rates on hold as long as inflation does not go beyond 2%. This in turn will likely cause Asian central banks to gauge their policy frameworks as well as assess the possible spillover effects from the Fed’s decisions, it said.

“Central banks are reluctant partly because it is early and they may prefer to monitor the impact of the Fed’s changes from the sidelines. Financial imbalances caused by too-low rates accelerating credit/asset price cycles are also likely on their minds,” Nomura Global said, noting the BSP with its strict inflation targeting role is “unlikely to follow Fed initially.”

In its August policy meeting, the BSP raised its average inflation forecast for 2020 to 2.6% from the 2.3% it issued in June. The 2021 outlook was also increased to 3% from 2.6%. All updated forecasts are still within the 2-4% target set by the central bank. — Luz Wendy T. Noble

Procurement board planning rules to close vendor eligibility loopholes

THE Government Procurement Policy Board (GPPB) will clarify its rules on ineligible vendors after the Department of Budget and Management (DBM) nearly procured medical supplies from a blacklisted entity.

“We are looking into refining again the blacklisting rules to make sure that no gray area will be left in so far as blacklisting is concerned,” GPPB-Technical Support Office Executive Director Rowena Candice M. Ruiz told Senators Monday.

DBM Undersecretary Lloyd Christopher A. Lao said a contract was awarded to Ferjan Health Link, Inc., which was a separate firm from the Ferjan Health Link Enterprise based on its initial review.

He said, however, that the Securities and Exchange Commission confirmed that one of the stockholders of Ferjan Health Link, Inc. is the sole proprietor of the blacklisted company, Ferjan Health Link Enterprise.

“What happened in the case of the procurement service is that the blacklisted sole proprietor created a new corporation. That was not covered in the existing rules,” Ms. Ruiz said.

“What we did was coordinate with the Procurement Service (PS) to give them the options available and the option taken by the PS is to cancel or terminate the contracts.”

Mr. Lao said the contract, worth P727.5 million, was canceled Friday. He added that no advance payment was made to Ferjan.

The officials were at a Finance committee hearing on the proposed P1.908-billion budget of the DBM for 2021, which is 18.15% lower than its 2020 budget.

Mr. Lao said the GPPB will consider the inclusion of corporations in the blacklist should it have officials who are blacklisted sole proprietors.

“The GPPB is making some changes on the rules to include the application of sole proprietorship blacklisting, and carrying over the blacklisting to the corporation, which has ownership of at least one stockholder whose sole proprietor business is blacklisted,” Mr. Lao said.

Senate Minority Leader Franklin M. Drilon had noted that contracts for the procurement of medical supplies, such as testing kits and personal protective equipment, were awarded to blacklisted companies.

“We suggest strongly that you amend because we will know that you should not be able to hide behind a corporate structure to skirt the disqualification as an individual, joint partnership or joint venture,” Mr. Drilon said. — Charmaine A. Tadalan

Bill proposed to deter ‘cartel’ behavior in downstream fuel industry

A LEGISLATOR said he is proposing a bill to thwart the formation of a monopoly in the downstream oil industry.

The alleged “lack of transparency” in the pricing mechanisms of the Philippines’ oil majors raises the possibility of potential collusion, according to Senator Sherwin T. Gatchalian.

The legislator, who also leads the Senate energy committee, said he is “planning to file a bill that will give more teeth to existing laws in the downstream oil industry.”

His office is also “studying ways to strengthen the anti-trust safeguards in the Republic Act No. 8479 (Downstream Oil Industry Deregulation Act) and how it can interact with the Philippine Competition Act.”

The Supreme Court recently barred a Manila court from ordering a review of the books of accounts of Petron Corp., Pilipinas Shell Petroleum Corp., and Chevron Philippines, Inc.

In 2009, a Manila Regional Trial Court ordered the Bureau of Customs, Bureau of Internal Revenue, and Commission on Audit to examine the companies’ accounts for any evidence of collusion. The agencies declined, saying that such examinations exceed their mandates.

The Supreme Court said the proper agency to conduct the examination was a joint task force of the Energy and Justice departments, to look into any breaches of the Oil Industry Deregulation law. The task force subsequently found no antitrust violations.

Stiff competition within the oil industry should have led to lower pump prices, but this is “simply not happening,” said Mr. Gatchalian.

“The promise of the law is to provide reasonable prices, encourage competition and investments,” he said.

The pricing of petroleum products mirrors that of the movement of the Mean of Platts Singapore benchmark, according to the Department of Energy.

In 2019, the three oil companies controlled about half of the market for petroleum products, according to the DoE-Oil Industry Management Bureau. Petron had a 24.59% market share, followed by Pilipinas Shell with 18.49% and Chevron Philippines, which markets Caltex products, with 7.57%. — Adam J. Ang

Gov’t Aug. cash utilization 83% year to date, still lagging 2019 pace

CASH UTILIZATION by government agencies was 83% in the eight months to August, remaining weak due to spending constraints imposed by the pandemic, the Department of Budget and Management (DBM) said.

Cash utilization rates are based on Notice of Cash Allocations (NCAs), an authorization issued to agencies of funds available for disbursement. The DBM said P2.245 trillion worth of NCAs were issued out of the P2.693 trillion released in the eight months.

NCA utilization rates have been declining year on year since April, when much of the country was under strict lockdown. Restrictions have been eased since June.

Line agencies had used P1.555 trillion worth of NCAs by the end of August, for a utilization rate of 80%.

The Commission on Elections had the highest utilization rate at 91%, followed by the Commission on Human Rights with 90% and the Department of National Defense 88%.

Other budgetary items were utilized at a rate of 92% during the period, with P689.927 billion disbursed out of the P746.723 billion released.

This includes P143.55 billion for budgetary support to government-owned and -controlled corporations, with a 97% usage rate; and P546.38 billion from the allotment to local government units, which had a 91% utilization rate.

The DBM has released P3.9 trillion or 95.6% of this year’s P4.1-trillion budget in the eight months to August. — Beatrice M. Laforga

Farmers blame low palay prices on ‘unpredictable’ rice imports

THE ‘unpredictable’ pattern of rice imports has depressed farmgate prices of palay, or unmilled rice, according to an organization of farmers.

In a statement, Federation of Free Farmers (FFF) National Manager Raul Q. Montemayor said rice traders are offering low prices for palay out of fear that imports will flood the market in the coming months.

According to the FFF, rice imports for the first eight months of the year fell 25% year on year to 1.66 million metric tons (MT), with the national rice inventory as of Aug. 1 also posting a 16% decline year on year.

“The decline in farmgate prices is surprising considering the lower imports. Palay buying prices usually go up in September because of the scarce supply of palay and then go down only during the peak harvest season in October and November,” the FFF said.

Based on the group’s field reports, the buying price of palay in September has declined to as little as P16 per kilogram on a dry basis, and from P11 to P13 per kilogram for wet palay.

FFF also said that palay prices averaged P18.39 per kilogram in late August, citing data from the Philippine Statistics Authority.

“Last year, traders bought palay from farmers during the first half of the year at relatively high prices and were caught flat footed by the massive inflow of imports in the second half of the year. Many of them could not unload their stocks at a profit and some had to suspend their operations,” Mr. Montemayor said.

Mr. Montemayor said that despite three million tons of excess imports in 2019, the Bureau of Plant Industry still issued sanitary and phytosanitary import clearances for 3.75 million tons of rice imports between January and September this year.

“However, less than half of the allowed volume has entered the country so far, mainly due to the increase in international prices of rice in response to the coronavirus disease 2019 (COVID-19) pandemic and weather disturbances in the region,” Mr. Montemayor said.

Mr. Montemayor added the Department of Agriculture (DA) has repeatedly assured that the country has ample rice supply, but did not say that the surplus rice inventory is due to imports.

“The problem now is that we already have a surplus at present, the main harvest is coming in, and the importers might still bring in more stocks in the coming months. The anticipated surplus is what is driving palay prices down,” Mr. Montemayor said.

The DA was asked to comment but had not replied at deadline time. — Revin Mikhael D. Ochave

Legislator files rent relief and eviction moratorium bill in House

A BILL has been filed in the House of Representatives creating a loan program run by government banks to finance rent payments.

Representative Jose Ma. Clemente S. Salceda of the second district of Albay, who chairs the House Ways and Means committee, filed House Bill No. 7665, or the proposed Rent Relief Act of 2020, which also seeks to impose an eviction moratorium.

The measure hopes to provide financing for about 2 million renters.

In its 2015 Census of Population and Housing, The Philippine Statistics Authority estimated that around 2.7 million households occupy rented housing.

“We estimate the number to have increased to 3.1 million in 2020. Our analysis of the newly unemployed shows that up to 3% of these households, or some 93,000 households, may be in danger of eviction due to nonpayment of rents even with the Bayanihan measures to provide rent relief,” Mr. Salceda said in a statement Monday.

HB 7665 requires the Social Security System, the Government Service Insurance System, and the Pag-IBIG Fund to offer rent financing to their members “at favorable rates,” while also directing the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) to offer rent loans “at rates not higher than their lowest-yielding loans.”

The scheme calls for banks to pay the rent for a pre-determined period, while allowing the tenant a longer repayment period.

Citing the effects of the pandemic on the livelihood and incomes of families, HB7665 also allows government institutions to discount promissory notes issued by the renter in exchange for non-eviction, while providing a three-month window for renters to find new jobs.

The bill also tasks the Department of Human Settlements and Urban Development with establishing rental assistance centers to help tenants and lessors negotiate terms of lease and find other assistance programs to stave off eviction.

Asked to clarify if the bill might be revised in the future to include private banks, Mr. Salceda told BusinessWorld that it is only possible under consultation with government agencies. He said if private banks are included in the measure, it “will probably be to co-share the risks or costs with them instead of requiring them to take up loans that might not align with their risk appetite, without some burden-sharing on government’s part.”

“We do not want to significantly compromise asset quality of banks during a crisis. That could have some unintended consequences for the rest of the economy,” he said. — Kyle Aristiophere T. Atienza

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