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Gov’t sets P170-B borrowing plan for April

THE GOVERNMENT increased its borrowing program for the domestic bond market to P170 billion in April to take advantage of the abundant liquidity.

The Bureau of the Treasury (BTr) is set to borrow P100 billion during weekly offering of Treasury bills (T-bills) and another P70 billion via fortnightly auctions of Treasury bonds (T-bonds), based on an advisory posted on its website on Monday.

The P170-billion latest borrowing program is higher than the P160-billion target in March, but still lower than the P190-billion planned borrowings in April 2020 — one year since the Treasury shifted to a monthly auction schedule from the previous quarterly program amid the coronavirus pandemic.

National Treasurer Rosalia V. de Leon said the government increased the program to “take advantage of good liquidity conditions.”

The BTr raised the volume of T-bills to be offered every Monday to P25 billion from the previous P20 billion.

It will now auction off P5 billion in 91-day papers, P8 billion in 182-day debt and P12 billion in 364-day securities.

The initial program for T-bonds was raised to P35 billion from P30 billion previously, but shortened the tenors.

The Treasury is set to raise P35 billion in five-year bonds on April 6, and another P35 billion via the seven-year notes on April 20.

The BTr raised P169 billion from the domestic bond market so far this month, excluding the results of the tap auction on Monday.

The actual debt was higher than the programmed P160 billion after it opened the tap facility for T-bills twice and upsized the volume of bills accepted on Monday when rates fell across the board. This was composed of P109 billion in T-bills and P60 billion in T-bonds.

The government is looking to borrow 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

Over P150B in bad assets likely to be disposed under FIST law — BSP

By Luz Wendy T. Noble, Reporter

BANKS are expected to dispose of at least P152 billion in nonperforming assets (NPAs) as they take advantage of the Financial Institutions Strategic Transfer (FIST) Act, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.

“During the Asian Financial Crisis, around 30% of the banks’ NPAs were sold under the Special Purpose Vehicle (SPV) Act,” Mr. Diokno said at an online briefing on Thursday.

“One estimate is that the same proportion of NPAs will be sold by BSP-supervised financial institutions under the FIST Act. This translates to at least P152 billion in NPAs or 30% of the banking system’s total NPAs as of Dec. 31, 2020,” he added.

Republic Act No. 11523 will allow financial institutions to clean up their balance sheets by offloading NPAs and bad loans to so-called FIST Corporations (FISTC). Its precursor, Republic Act 9182 or SPV Act of 2002, was implemented after the Asian Financial Crisis.

Mr. Diokno has earlier said FIST is expected to reduce the NPL ratio by about 0.63 to 0.73 percentage points.

Latest data from the BSP showed the nonperforming loan (NPL) ratio held by big banks stood at 3.7% in January, up from the 3.61% in December and 2.16% in January 2020. This is equivalent to P392.256 billion of bad loans, climbing 67% from the P234.987 billion seen in January 2020.

Meanwhile, BSP Office of the General Counsel and Legal Services Deputy Director Noel Neil Q. Malimban said there has been some interest from financial institutions regarding the FIST Act.

FIST Corporations will be granted with tax perks for the processes to be undergone in the implementation of the law.

Philippine National Bank Executive Vice-President and Chief Financial Officer Nelson C. Reyes said earlier this month that they are interested in tapping the provisions of the law to take advantage of its benefits to their capital.

IMPLEMENTING RULES
Meanwhile, the Securities and Exchange Commission (SEC), the Department of Finance (DoF), BSP, the Bureau of Internal Revenue (BIR), and the Land Registration Authority (LRA) released the implementing rules and regulations (IRR) of the FIST Act on Monday.

“The commission has always supported the passage of the FIST Act. With the implementing rules and regulations in place, we are optimistic that the law will serve its purpose of ensuring the resilience and recovery of the financial sector, which in turn will provide the much-needed support for businesses and consumers alike,” Emilio B. Aquino, SEC chairperson, said in a statement on Monday.

The law allows for the creation of corporations with a primary purpose of investing in or acquiring NPAs of covered financial institutions. The SEC is the primary implementing agency of the FIST Act.

“If the FISTC will acquire land, at least sixty percent (60%) of its outstanding capital stock shall be owned by Philippine nationals as defined under the FIA (Foreign Investment Act),” the IRR stated.

Foreign equity participation will also be subjected to guidelines under the FIA.

The minimum authorized capital stock of FISTCs should amount to P500 million, with a minimum subscribed capital stock of P125 million, and a minimum paid-up capital of P31.25 million.

FIST Corporations are considered vested with public interest. It should have independent directors on its board, appoint a compliance officer and submit reports on compensation and performance.

“Applications for the establishment and registration of a FISTC shall be filed with the commission within thirty-six (36) months from the effectivity of the Act,” the IRR said.

FISTCs created on the 25th and the 36th months from the Act’s effectivity will not be subjected to the tax incentives, unless a law extending the privileges is passed. — with Keren Concepcion G. Valmonte

BIR allows filing, payment of tax returns ‘anywhere’

THE BUREAU of Internal Revenue (BIR) is now allowing taxpayers to file their tax returns and make payments “anywhere” in the country, amid the surge in coronavirus infections.

BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular No. 41-2021 on Monday, allowing the filing of returns and payment of taxes, whose deadlines fall between March 22 to April 30, “anywhere, even outside the jurisdiction of the Revenue District Office where they are registered.”

For taxpayers not required to use the Electronic Filing and Payment System (eFPS) and eBIRForms system, the BIR urged them to file their returns through the eBIR Forms facility and pay taxes through online payment channels.

“This circular is being issued in order to provide relief to taxpayers, in relation to the current surge in COVID-19 cases that is affecting the entire country which has prompted establishments to operate at half their manpower capacity,” the BIR said in the circular.

Taxpayers are previously required to file and pay their tax returns in the Revenue District Office they were registered or face penalties, BIR Deputy Commissioner Arnel SD. Guballa explained on Monday. — Beatrice M. Laforga

UN chief flags COVID-19 debt crisis for developing world

UNITED NATIONS Secretary-General Antonio Guterres said the world faces intense issues of debt sustainability because of the coronavirus crisis that have not been properly understood or addressed, the Financial Times reported on Monday.

“The response to COVID and to the financial aspects [of the crisis] has been fragmented, and geopolitical divides are not helping,” Mr. Guterres told the FT.

Countries such as Brazil and South Africa had borrowed heavily from domestic lenders rather than from foreign investors, at interest rates much higher than those available to rich countries, making the dangers less visible than in previous emerging market debt crises, according to Mr. Guterres.

“They are essentially borrowing in the internal market but maturities are coming down,” Mr. Guterres told FT. “This is a very bad signal.” — Reuters

GT Capital posts 53% profit fall

Pandemic hampers operations of Ty-led businesses

GT Capital Holdings, Inc. reported a net income drop of 53% in 2020 to P7.4 billion, citing the effects of the coronavirus disease 2019 (COVID-19) crisis on the group’s businesses.

The consolidated net income of the listed conglomerate fell by 68% to P6.5 billion from P20.3 billion recorded in the previous year.

“Our year-end 2020 results show the full impact of the pandemic and the consequent lockdown that hampered the group to effectively only seven months of operations,” GT Capital President Carmelo Maria Luza Bautista said in a statement on Monday.

Banking segment Metropolitan Bank & Trust Co. contributed P13.8 billion in net income to GT Capital’s yearend results, while Toyota Motor Philippines Corp. generated a net income of P3.4 billion.

Consolidated revenues amounted to P134.4 billion, down by 40% from P222.9 billion in 2019.

Metrobank reported a 26% increase in income before provisions worth P61.8 billion in 2020, comparative figures were not disclosed. Full-year income amounted to P13.8 billion after booking provisions for future pandemic risks worth P40.8 billion.

“Metrobank’s core business remains solid and the bank looks forward to being a key partner in economic recovery. The bank will continue monitoring economic conditions and considering strategies that will maintain a balance between strong capital and optimal returns,” GT Capital said.

Meanwhile, Toyota’s consolidated net income amounted to P3.4 billion, dropping by more than 63% from P9.3 billion in 2019. Revenues fell by over 40% to P99.8 billion from P168.6 billion.

Toyota’s retail sales declined by 38% to 100,019 units from the 162,011 units sold in the previous year, but beating its estimated sales of 90,000 units. The company noted that it still outperformed the auto market, which declined by 41% in 2020.

The car dealer ramped up sales and marketing efforts after fully reopening in August. Digital showrooms and Toyota-owner apps were launched, while its service operations opened and offered services via appointment.

Five new models were also launched by the car brand every month from June to October, which “helped to significantly stimulate interest and demand for new vehicles.”

“Toyota is positioning itself for a resurgence of mobility requirements this year, including in the pre-owned car market,” Vince S. Socco, GT Capital Auto Dealership Holdings, Inc. chairman, said.

The company is expecting to benefit from a full 12-month sale this year, compared with 10 months of selling in 2020.

“As jobs, consumer confidence, and general economic activity in the country return, demand for motor vehicles is expected to rise,” Mr. Socco added.

Meanwhile, the consolidated net income of GT Capital property firm Federal Land, Inc. declined by 61% to P624 million from P1.6 billion as construction and sales activities were affected by quarantine restrictions.

Booked total revenues for Federal Land amounted to P9.3 billion in 2020, down by nearly 30% from P13.2 billion the previous year. Total reservation sales posted a 41% decrease to P14.2 billion from P24.2 billion.

“Lease revenues rose by 17% to P1.8 billion during the period, driven by new tenants in the developer’s commercial properties,” GT Capital reported without disclosing comparative figures.

The consolidated core net income of Metro Pacific Investments Corp. (MPIC) totaled P10.2 billion in 2020, falling by 34% from P15.6 billion a year earlier due to the economy’s contraction. GT Capital has a stake of about 16% in the infrastructure conglomerate. 

“The various quarantine measures implemented throughout the year reduced toll road traffic, mandated the suspension and subsequent reduction in ridership capacity for light rail services, and decreased commercial and industrial demand for water and power, resulting in a 26% decline in contribution from operations,” GT Capital said.

Power contributed P10.5 billion or 69% to MPIC’s operating income, water accounted for P3.1 billion or 20%, while toll roads generated P2.4 billion or 16%. Other businesses incurred a total loss worth P709 million.

Ty-led insurance company AXA Life Insurance Corp. earned a consolidated net income of P2.9 billion in 2020, improving by 22% from P2.4 billion the previous year. Its gains were driven by “higher single premium sales” of 55%.

Life insurance sales in annualized premium slumped by nearly 24% to P5.2 billion from P6.8 billion due to limited agent mobility and slowed bank branch foot traffic resulting from multiple lockdowns.

GT Capital remains optimistic for prospects in 2021.

“We are optimistic that despite the recent surge in Covid-19 cases, while alarming, will be mitigated once the pre-ordered vaccines are delivered by June and September. We have taken the necessary steps to procure the vaccines to protect all our employees and contractual staff. We anticipate that 2021 will be less disruptive than the previous year,” Ms. Bautista said.

GT Capital shares at the stock exchange improved by 2.88% on Monday to close at P535 from P520 per share. — Keren Concepcion G. Valmonte

Karaoke show Sing Galing makes a TV comeback

AFTER being off the air for 16 years, the karaoke game show Sing Galing! returns to TV5 on April 5, offering viewers an evening singing session prior to the primetime series lineup.

Sing Galing! first aired from 1998 to 2005 on ABC-5. During its run, it won entertainment awards including the 2000 PMPC Star Awards for Television for Best Game Show.

In the latest version of the game show, each episode features three contestants (a.k.a. “singtestants”) who compete through three rounds of karaoke singing. The songs will be chosen randomly for each contestant. The contest also offers a bonus round where contestants sing to a randomly selected song with missing lyrics.

During the karaoke rounds, the game show’s signature animated genie appears on screen to strike a gong when a contestant goes out of tune or misses lyrics — making the contestant miss the chance of winning. The winners will vye for the grand finals.

The new show is hosted by “sing masters” — singer Randy Santiago and comedians Donita Nose (a.k.a. Rodello Juntos Solano) and K Brosas — with singers Rey Valera, Ronnie Liang, and Jessa Zaragoza as the judges. The audience can also participate in activities and in online Sing Galing! segments hosted by singer Zendee.

“May mga portion na hindi mo alam kung ano ang kakantahin mo. So, it’s understandable kahit sumabit ka. (There are portions that you would not know what to sing. So, it’s understandable if you missed),” Mr. Valera said in a press launch held over Zoom on March 26.

“Hindi kami pressured na husgahan [ka], at naintindihan namin [at] ng mga manonood yung nangyayari (We are not pressured to judge you, and we and the audience understand what happens),” Mr. Valera said about his role as a game show judge, adding that there is no serious criticism on singing dynamics in their show compared to a talent show.

“Napanood ko ito dati… Hindi kasi siya napakapormal tapos may tawanan din… Dito mo makikita ‘yung culture ng mga Filipino bilang mga singer, mga mahihilig sa videoke (I have watched the show before… It is not very formal and it is also funny… it shows the culture of Filipinos as singers, as those who love videoke singing),” Donita Nose said.

Aside from being within the age bracket of 18 to 60 years old, Donita Nose said that qualifying contestants should be strong-willed, love to sing karaoke, have extensive knowledge of songs, and sing at performance level.

Sing Galing, Ang Original Videoke Kantawanan ng Bansa! will air Mondays to Fridays at 6:30 p.m. on TV5 beginning April 5. — Michelle Anne P. Soliman

Atlas Mining returns to profitability with P118-M net income

ATLAS CONSOLIDATED Mining and Development Corp. recorded a P118-million net income last year due to improved production and higher metal prices.

The listed mining firm disclosed in a regulatory filing on Monday that its net income for 2020 is a reversal from the P565-million net loss it had the year earlier.

Revenues last year reached P18.32 billion, a 7% increase from P17.13 billion in 2019, while its earnings before interest, tax, depreciation, and amortization (EBITDA) rose 45.8% year on year to P8.92 billion.

“The improvement in the bottom line is attributed to the sustained stability of operation and production, the significant increase in gold volume, the increase in metal prices in the second half and the decrease in operating costs,” Atlas Mining said in the disclosure.

Gold output of the company’s Cebu-based wholly owned subsidiary, Carmen Copper Corp., reached 47,857 ounces for 2020, a 26.7% increase from 37,786 ounces in 2019.

Carmen Copper also produced 107.09 million pounds of copper metal in 2020, a drop of 0.1% from the 107.24 million pounds it had the year earlier.

“Milling tonnage increased by 5% from 17.57 million tons to 18.37 million tons. On the other hand, copper grades decreased by 5% from 0.319% to 0.304%; while gold grade significantly improved by 31% from 6.24 grams per dry metric tons (DMT) to 8.17 grams per DMT,” Atlas Mining said in the disclosure.

“Copper metal content of concentrate shipped decreased by 4% to 106.07 million pounds, while gold content increased by 23% to 43,480 ounces due to higher gold grade,” it added.

According to Atlas Mining, the average realized copper price for 2020 rose 2.6% to $2.79 per pound, while the average realized gold price also improved 27.5% to $1,777 per ounce.

The company added that cash costs also fell 14.3% year on year to P9.51 billion due to decreases in waste stripping, fuel, power, explosives, and maintenance parts.

Adrian Paulino S. Ramos, Atlas Mining president, said the company had been able to post growth in earnings due to improving metal prices and on the operational improvements it attained over the years.

“We are confident that these improvements will serve as an effective hedge against any downturn in the commodities market. We will continue to focus on operational stability and safety, cost efficiencies, and sustainability,” Mr. Ramos said in the disclosure.

On Monday, shares of Atlas Mining at the stock exchange improved 0.80% or five centavos to finish at P6.29 apiece. — Revin Mikhael D. Ochave

Gov’t hikes award of T-bills as investors flock to safer assets

THE GOVERNMENT hiked the volume of Treasury bills (T-bills) it awarded on Monday as rates went down across the board, with investors flocking to the safe-haven securities following the reimposition of stricter restrictions in the capital and nearby provinces.

The Bureau of the Treasury (BTr) borrowed P24 billion via the T-bills on Monday, more than the programmed P20 billion, as total tenders hit P79.33 billion or almost four times the amount on offer. The bids also climbed from the P64 billion in demand seen the previous week.

It also opened its tap facility to offer P5 billion in one-year T-bills.

Broken down, the BTr raised P7 billion from the 91-day debt, higher than the P5-billion program, with bids reaching P22.357 billion. The average rate of the three-month papers went down by 6.7 basis points (bps) to 1.269% from the 1.336% fetched last week.

It borrowed another P7 billion from the 182-day T-bills, more than the P5-billion plan, after the tenor attracted demand worth P21.507 billion. The average yield of the six-month debt fell by 10.9 bps to 1.609% from 1.718% previously.

Lastly, the Treasury made a full P10-billion award of the one-year securities on offer as tenders hit P35.466 billion. The 364-day T-bills fetched an average rate of 1.926%, down by 7.1 bps from the 1.997% quoted for the tenor last week.

“[We] see rates moderating as investors again flock to safe-haven assets,” National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction on Monday.

Ms. De Leon said there is still enough liquidity in the financial system. She noted that the recent spike in inflation, which has been a growing concern among investors, is only transitory, as emphasized by the central bank in its latest meeting.

Meanwhile, a bond trader said the rates of short-term government securities went down on strong investor demand as the stricter lockdown imposed in the capital and surrounding provinces raised questions about the economy’s prospects for recovery.

Metro Manila, Bulacan, Cavite, Laguna and Rizal have been placed under the strictest form of lockdown again for one week starting Monday in a bid to curb the surge in coronavirus disease 2019 (COVID-19) cases.

Economists warned the tighter measures will hamper the economy’s rebound as it dampens confidence among consumers, businesses and investors.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) last week kept benchmark rates steady at record lows despite rising inflation as it supports an economy whose recovery is at risk from a renewed surge in COVID-19 infections.

The Monetary Board kept the overnight reverse repurchase rate at an all-time low of 2% for a third consecutive meeting. Rates for the overnight lending and deposit facilities were also maintained at 2.5% and 1.5%, respectively.

The central bank has kept borrowing costs unchanged since its December meeting, but BSP Governor Benjamin E. Diokno has said they will respond accordingly when the need arises, especially if rising inflation causes second-round effects.

Headline inflation reached 4.7% in February, the highest since the 5.1% in December 2018.

The central bank upwardly revised its inflation outlook to 4.2% this year from the forecast of 4% given in February. The average print for 2022 is seen at 2.8%, slightly higher than the previous projection of 2.7%.

The central bank chief also said on Wednesday that 2021 is “too early” for the BSP to unwind the easy policy it implemented at the height of the pandemic as the economy is still recovering. He said there is a need to maintain monetary policy accommodations for the BSP’s price and financial stability objectives.

Excluding the result of the tap facility auction on Monday, the BTr raised P169 billion from the domestic bond market this month, higher than the programmed P160 billion. This is composed of P109 billion in T-bills and P60 billion in Treasury bonds (T-bonds)

The Treasury wants to raise P170 billion from the local bond market next month, broken down into P100 billion in T-bills to be offered weekly and P70 billion via fortnightly auctions of T-bonds.

The government is looking to borrow 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

British royal Kate launches book of portraits to remember pandemic

NPGSHOP.ORG.UK/

KATE, the Duchess of Cambridge, on Sunday launched a book of photographic portraits taken during Britain’s coronavirus disease 2019 (COVID-19) lockdowns that she said would provide a lasting record of the pandemic.

Ms. Kate, who is married to Prince William, the Queen’s grandson and second in line to the throne, began the project with the National Portrait Gallery last year, inviting people to submit photos taken during Britain’s first coronavirus lockdown.

A panel of judges including Ms. Kate chose 100 portraits from over 31,000 entries, which were shown in digital and community exhibitions before the book was announced.

“Through Hold Still, I wanted to use the power of photography to create a lasting record of what we were all experiencing — to capture individuals’ stories and document significant moments for families and communities as we lived through the pandemic,” Ms. Kate wrote in the introduction to the book.

The book, called Hold Still: A Portrait of Our Nation in 2020, will be available from May 7,  exactly a year after the project began. Net proceeds will be split between the National Portrait Gallery and the British mental health charity Mind. — Reuters

Petron to enhance Bataan oil refinery

PETRON CORP. is looking at building additional components in its 180,000 barrels-per-day (bpd) refinery in Bataan in a bid to shift to cleaner technology and speed up the transfer of goods, according to a project description report from the Department of Environment and Natural Resources (DENR).

The firm is proposing to build a refinery solid fuel fired boiler phase 3 (RSFBB-3), a 500-meter fuel transfer line connecting to the SL Harbor Bulk Terminal Corp. (SLHBTC) and six support facilities, which are collectively known as the “Petron Refinery Special Projects.”

In its project description, Petron said that the special projects aim to help the refinery shift to cleaner technology by replacing its fuel oil-fired boilers, and “alleviate the pier and tank utilization” by building new transfer facilities.

The firm, however, clarified that the installation of the new components will not increase its production capacity.

The projects will be located at Brgy. Alangan in Limay. “The facilities (RSFFB-3 and transfer line) will be separately located in areas within the boundaries of Petron Bataan Refinery, Panasia (Energy, Inc.) and SLHBTC,” Petron said.

On Friday, the DENR said that it would hold a public scoping activity for Petron’s special projects on April 5 via Microsoft Teams video conferencing. The environment department said that those who wish to participate are encouraged to attend the event and provide their inputs during the review period.

A public scoping is part of the department’s environment impact assessment process where the project proponent is given the chance to provide an overview of the planned project, and gather issues and concerns, among others.

Two months ago, Petron said that it was infusing close to P3 billion to improve its refinery operations in Bataan, after registering in the province’s freeport area. The approval of the firm’s application by the Authority of the Freeport Area of Bataan allowed its refinery to avail of tax perks.

The company previously announced that the refinery would push forward with the economic shutdown of operations in 2021. Earlier, Petron President and Chief Executive Officer Ramon S. Ang announced the temporary shutdown of refinery operations to “reduce losses due to weak margins.”

Petron reported a net loss of P11.4 billion last year, swinging from a net income of P2.3 billion a year earlier as sales dropped due to the pandemic. For the full-year 2020, the firm’s consolidated sales volume slid 27% to 78.6 million barrels compared to its 2019 value.

Shares of Petron in the local bourse inched down 1.28% or four centavos to finish at P3.09 on Monday. — Angelica Y. Yang

BSP seen keeping rates steady this year to support economy

THE BANGKO SENTRAL ng Pilipinas (BSP) is likely to keep its policy settings untouched in 2021 to support recovery, analysts said, with a rate hike expected to happen if inflation risks persist.

“The BSP will look to the slow domestic recovery as a reason to keep monetary policy accommodative, particularly with uncertainty around the pandemic still high,” Fitch Solutions Country Risk & Industry said in a note.

The central bank maintained benchmark rates at record lows last week as it supports an economy whose recovery is at risk from a renewed surge in coronavirus infections.

The Monetary Board kept the overnight reverse repurchase or policy rate at an all-time low of 2% for a third consecutive meeting. Rates for the overnight lending and deposit facilities were also maintained at 2.5% and 1.5%, respectively.

The central bank slashed rates by 200 basis points last year. The Monetary Board has six more policy-setting meetings this year, with the next one set on May 13.

Fitch Solutions said the renewed lockdown and stricter restriction measures in Metro Manila and some provinces strengthen the case for the BSP to hold its policy settings for the whole year.

“We expect this to spur the BSP to keep monetary conditions loose as domestic activity remains below pre-pandemic levels and spare capacity is large. Compounding this is the lack of credit growth despite loose monetary conditions,” it said.

Outstanding loans by big banks fell for the second straight month by 2.4% in March as lenders remained risk-averse due to the pandemic.

Separately, Nomura Global Markets Research also projects a base case scenario of a pause for the whole of 2021.

“We continue to expect the policy rate to remain unchanged at 2% this year, but still see a rising risk of rate hikes if BSP’s expectation of inflation moderating by the fourth quarter does not materialize,” Nomura Global Markets Research analysts Euben Paracuelles and Rangga Cipta said in a note on Friday.

“While we think BSP sounded more hawkish [on Thursday], it is also unlikely to be signaling that rate hikes are imminent as it continues to see limited signs of second-round effects of inflation,” the analysts said.

The central bank upwardly revised its inflation forecast for the year to 4.2% (from 4%), above the 2-4% target for 2021. Meanwhile, the outlook for 2022 was also raised to 2.8% from 2.7% previously.

Inflation reached 4.7% in February due to higher food prices caused by typhoons and the African Swine Fever that tightened supply. This was the fastest print since the 5.1% in December 2018.

BSP officials have said they remain watchful for signs of broader-based inflation, but said supply-side factors would not warrant an “earlier-than-planned” exit from easy monetary policy. — L.W.T. Noble

Belarus disqualified from Eurovision Song Contest

MOSCOW —  Organizers of this year’s Eurovision Song Contest have disqualified Belarus, ruling that its entry song — by a band whose lyrics have been deemed in the past to mock anti-government protests — is in breach of competition guidelines.

Earlier this month the organizers rejected an entry by Belarus, which has been gripped by a political crisis since Aug. last year, as the submitted song mocked protests against President Alexander Lukashenko.

The song, by the band Galasy ZMesta, sparked a backlash from opposition figures in Belarus, who have faced a violent crackdown during the protests.

After the European Broadcasting Union (EBU) rejected the song, Belarus submitted another option, by the same band. But late on Friday the EBU also turned that down.

It said in a statement that it had “carefully scrutinized the new entry to assess its eligibility to compete” but found it to be “in breach of rules of the competition that ensure the Contest is not instrumentalized or brought into disrepute.”

This means Belarus will not be participating in the Eurovision Song Contest at all, the EBU said. The contest takes place on May 18-22 in Rotterdam.

Opposition has grown in Belarus to Mr. Lukashenko’s rule following an Aug. election that demonstrators say was rigged to extend his 27-year rule, leading to mass unrest and a violent crackdown.

Rights groups say over 34,000 people have been detained. The government says it is being unfairly maligned. The president denies electoral fraud and has accused the West of sponsoring the protests. — Reuters

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