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Senate approves FIST bill

By Charmaine A. Tadalan, Reporter

THE SENATE on Tuesday approved a measure allowing financial institutions to offload bad loans to asset management companies in order to cushion the impact of the coronavirus pandemic on their finances.

With 18 affirmative votes, no negative and abstention, the chamber passed Senate Bill (SB) No. 1849, the Financial Institutions Strategic Transfer (FIST) Act,” in anticipation of an increase in nonperforming assets (NPAs).

“This is a proactive response to the pandemic that should free up P1.19 trillion worth of loans and allow banks to lend to some 600,000 MSMEs (micro, small, and medium enterprises) and save over 3.5 million jobs,” Senator Grace S. Poe-Llamanzares said in a statement on Tuesday evening.

The measure was approved by the Senate on second and third reading on the same day, as President Rodrigo R. Duterte certified the bill as an urgent measure.

Ms. Poe-Llamanzares, who chairs the Senate Banks and Financial Intermediaries Committee, previously said the industry’s NPAs are projected to reach P635 billion by the end of the year.

As of end-September, bad loans stood at P364.672 billion, up from P227.660 billion last year and P304.997 billion as of end-August. Gross nonperforming loan (NPL) ratio reached 3.4% as of September, the highest since May 2013.

SB 1849 provides for the creation of FIST corporations that will be allowed to invest in or acquire NPAs and engage third parties for its management, operation, collection and disposal.

“This is a much-improved version of the SPV (Special Purpose Vehicle). The FIST does away with the requirements that delayed the transfer of assets without diminishing the rights of borrowers under existing laws,” she said.

Ms. Poe-Llamanzares was referring to Republic Act No. 9182, the SPV Law of 2002, that was enacted to help banks recover in the wake of the Asian Financial Crisis.

The FIST bill expanded covered institutions to include lending companies and other credit-granting companies, licensed by the BSP, which were under the SPV law. It also prohibits government financial institutions from setting up their own FIST corporations.

Under the bill, FIST corporations are allowed to transfer or purchase assets that became nonperforming before Dec. 31, 2022.

The counterpart measure, House Bill No. 6816 was approved on third reading in the House of Representatives in June.

House Committee on Banks and Financial Intermediaries Chairman and Quirino Rep. Junie E. Cua said he expects the Bicameral Conference Committee to approve the measure within the month, in time for its signing by the end of the year.

“I hope we can finish it within the month because we are rushing it,” Mr. Cua said in a phone interview on Wednesday. “Para by January, naka-ready na ’yung batas. Gagawin pa ’yung IRR (Implementing Rules and Regulation).”

Ms. Poe-Llamanzares had said the bill, as approved by Senate, can be implemented without an IRR.

The FIST bill was among the coronavirus disease 2019 (COVID-19) response measures the Senate wants to pass by yearend. This is on top of the P4.5-trillion national budget for 2021 and the Corporate Recovery and Tax Incentives for Enterprises bill that will lower corporate income tax to 25% immediately and streamline fiscal incentives.

‘Premyo bonds’ launched

THE BUREAU of the Treasury (BTr) on Wednesday launched one-year peso-denominated “Premyo bonds” with an interest rate of 1.25% per annum, as it seeks to attract more small investors to government securities.

The Treasury is seeking to raise P3 billion from the issuance. The offer period runs until Dec. 11.

During the bond’s launch, National Treasurer Rosalia V. de Leon said they have increased the number of winners in the quarterly draws. The Treasury will award P50,000 each to 20 winners from participants who invest P20,000 or below.

“As more Filipinos get familiar with government securities, they will get into the habit of investing and at the same time help the government expand its financing footprint in the retail sector,” Ms. De Leon said.

Similar to those issued in 2019, Premyo bonds require a minimum investment of P500. The interest is payable quarterly, and subject to a 20% final tax.

The Premyo bonds will be available through the mobile applications of Bonds.PH and Overseas Filipino Bank, and the BTr’s online selling platform.

Selling agents are Development Bank of the Philippines, BDO Capital and Investment Corp., China Bank Capital Corp., First Metro Investment Corp., Philippine National Bank Capital, UnionBank of the Philippines and Land Bank of the Philippines.

Domestic debt reached P6.44 trillion as of end-September, declining by 4% from end-August. This was 22% higher than the P5.26 trillion recorded in September 2019 due to an increase in the issuance of government securities to raise funds for the pandemic response. — KKTJ

Gov’t to forge new contract with water firms

THE Department of Justice will negotiate with two water concessionaires in Metro Manila on the proposed new contract after the President ordered their review due to alleged onerous provisions.

Justice Secretary Menardo I. Guevarra said President Rodrigo R. Duterte last night approved the proposed contract for Maynilad Water Services, Inc. and Manila Water Co., Inc.

The new contract removed the “onerous” provisions in the previous deal, Mr. Guevarra said.

“New provisions that will be incorporated, that will somehow, that will make the water concession agreements more equitable, more transparent and will lessen contingent liabilities on the part of the government plus improving its governance system,” he said during the Kapihan sa Manila Bay forum.

“In principle, the President has approved our recommendation so the next step will be to sit down with the two water concessionaires in Metro Manila to discuss the specific terms and conditions of a proposed new water concession agreement with each of them,” he added.

Mr. Guevarra told reporters via Viber message that the President did not give a deadline, but the review panel intends to meet them as soon as possible.

The Justice department in December last year said it found a dozen of onerous provisions on the contracts of the water concessionaires.

This includes the provision on the non-interference of the government in rate-setting and the liability of the government if the companies suffer losses. It also found as irregular the extension of their contracts until 2037, years before the original expiration in 2022.

President Rodrigo R. Duterte in June said that he was fine with the contracts of the water suppliers as long as they “pay back” to the consumers. He also said that he would  file cases against them if they do not approve the proposed contracts.

The concessionaires previously won an arbitration case, which ordered the government to pay them indemnity for the losses they suffered. Both the companies said they would not pursue the awards. — Vann Marlo V. Villegas

SM to open new mall in Agusan del Norte this week

SM Prime Holdings, Inc. is opening a new mall in Mindanao this week as it remains bullish in the island’s business prospects amid the coronavirus pandemic.

In a statement on Wednesday, the Sy-led property developer said it will open SM City Butuan in Agusan del Norte on Friday, which would expand its mall network to six malls in Mindanao.

“The steady economic growth demonstrated by Mindanao over the past years has driven SM Prime to pursue its expansion in the region delivering integrated property developments in various key areas in Mindanao,” SM Prime President Jeffrey C. Lim said.

The development will have 48,000 square meters of gross floor area spread across three levels. It will feature local and international stores, SM-owned brands, dining areas, four cinema facilities, and an open parking with a helipad. SM Prime noted more than 80% of SM City Butuan’s leased space has already been awarded.

“We hope that the opening of SM City Butuan will further contribute to (Mindanao’s) advancement while providing essential needs and services, as well as entertainment in the region,” Mr. Lim added.

The new mall is targeted to customers in Northeastern Mindanao, particularly those from Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del Norte, and Surigao del Sur.

Unlike in Metro Manila where restrictions remain tighter, Agusan del Norte has been under a “modified general community quarantine” since June, the most relaxed lockdown in the government’s four-tiered community quarantine.

In the first nine months of the year, SM Prime said it generated P18.3 billion from its operation of Philippine malls, down 57% from last year due to the coronavirus-related lockdown. Its attributable net income stood at P14.37 billion, lower by 48% from year-ago levels.

Shares in SM Prime closed flat on Wednesday at P38.30 apiece. — Denise A. Valdez

Villar makes Forbes Asia’s list of top altruists in 2020

THE Philippines’ richest individual Manuel B. Villar, Jr. is the sole Filipino included in Forbes Asia’s list of top philanthropists in the Asia-Pacific region for 2020.

In its “Heroes of Philanthropy” list published on Wednesday, the business magazine identified 15 altruists for their contributions in the fight against the coronavirus disease 2019 (COVID-19) pandemic and other causes.

Mr. Villar is ninth on the list, primarily for his donation of more than two hectares of land to Saint Jude Catholic School and five hectares of land to the University of the Philippines. The magazine said the two properties have a combined value of P8 billion.

Forbes also cited contributions by Mr. Villar to four other schools, churches, and initiatives to combat poverty and the COVID-19 pandemic.

The magazine noted it awards candidates based on donations made from personal fortunes. It excludes those made by companies unless the tycoon is the majority owner of the privately held company.

Mr. Villar is a former senator and chairman of several listed companies, namely real estate firm Vista Land & Lifescapes, Inc.; mall operator Vistamalls, Inc.; death-care service provider Golden Bria Holdings, Inc.; and home improvement retailer AllHome Corp.

In September, Forbes said Mr. Villar’s net worth was $5 billion, down by $1.6 billion due to the impact of the COVID-19 pandemic to his businesses.

Other names in this year’s Philanthropy List are Vietnam’s Pham Nhat Vuong, India’s Pramod Bhasin, Singapore’s Robert and Philip Ng, Hong Kong’s Li Ka-shing, and Japan’s Tadashi Yanai.

Last year, two Filipinos made Forbes’ Philanthropy List: Hans T. Sy of SM Prime Holdings, Inc. and actress Angel Locsin. — Denise A. Valdez

Japan firm to build P15-B cement plant – DTI

JAPANESE company Taiheiyo Cement Group will build a new P15-billion production line in Cebu to expand its local output capacity.

Its local subsidiary Taiheiyo Cement Philippines, Inc. will build the new production line and expand shipping bases to Luzon, Iloilo, and Davao, the Department of Trade and Industry (DTI) said in a press release on Wednesday.

Taiheiyo will also install a two-kilometer marine belt conveyor and expand its Cebu port.

The company’s infrastructure expansion project was part of a letter of intent signed with the Trade department during President Rodrigo R. Duterte’s 2017 Tokyo visit.

The expansion will increase the company’s cement production capacity by 50% in the short term, and 150% in the medium term, the DTI said. The company plans to increase its Philippine market share to 10% from seven percent.

According to DTI, Taiheiyo’s executives based in Japan have reported that the expansion is underway.

“The project promises to adhere to green economy requirements via the introduction of energy-efficient operations, which will bring about a reduction by 10% of carbon dioxide emissions from energy use in clinker production from the old line’s energy efficiency rates,” DTI said.

Trade Undersecretary Ceferino S. Rodolfo said that the Board of Investments is reviewing the project’s new technologies, in case they are eligible for incentives.

The Philippines is the third-largest cement importer in the world, after the US and China, as it imported $543.9 million of the product in 2019. — Jenina P. Ibañez

Shakey’s posts P172-M loss, sees profit in Q4

SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) is hopeful to return to profitability in the fourth quarter of the year despite posting continuing losses in the third quarter.

In a regulatory filing on Wednesday, SPAVI said it recorded a net loss of P171.95 million in the July-to-September period, reversing last year’s profits of P161.81 million.

Its revenues were down 48% to P1.06 billion, as dine-in services at its stores remain limited due to coronavirus-related restrictions.

However, SPAVI said it started to post a net income in the month of September, ending consecutive months of losses since the coronavirus pandemic started.

“Though there remain challenges in the overall environment, we are nevertheless pleased to see a gradual improvement in demand. Our recovery rate in the third quarter has been better than expected, mainly driven by the sustained healthy growth of our off-premise business and a marked improvement in dine-in sales,” SPAVI President and CEO Vicente L. Gregorio said in a statement.

“We look forward to seeing continued improvement, most especially with the arrival of ‘–ber’ months, traditional periods of celebration in the Philippines,” he added.

On a year-to-date basis, SPAVI recorded a net loss of P461.91 million, a turnaround of last year’s net income of P550.43 million.

It generated 35% lower revenues at P3.83 billion, largely due to temporary store closures in the early months of the pandemic.

“With the worst of this crisis hopefully now behind us, we are setting our medium and long-term priorities… We are energized by the positive reception to our recent initiatives and we will continue to strive to not only meet, but exceed our guests’ evolving needs and expectations in this new normal,” Mr. Gregorio said.

SPAVI is the listed operator of Shakey’s Pizza and Peri-Peri Charcoal Chicken in the Philippines.

On Wednesday, shares in SPAVI at the stock exchange grew 68 centavos or 8.76% to P8.44 each. — Denise A. Valdez

Second place doesn’t mean second rate for this whisky brand

NUMBER TWO — for some people, it sounds like a curse. The spare not the heir. The mistress not the wife. We always frame it as a sad story, that it means always missing the top spot by just a hair’s breadth. With that thought, we discount all the steps that make something Number Two (instead of three, four, or 12).

Ballantine’s currently stands as the number two best selling whisky brand in the world, with a 2020 sales and results report by Pernod Ricard recording organic sales of 7.2 million cases, down 8% year on year. Asked what it felt like to be No. 2, Tony Atayde, Marketing Head for Pernod Ricard Philippines, said, “It makes me feel hungry. When you’re No. 1, there’s no way to go but down. We’re coming to get you.” And no matter, they’re No. 1 in Europe, anyway.

BusinessWorld attended a virtual tasting of Ballantine’s Finest, its most famous blend, late last month. The blend is made with over 40 single malts and grains, prominent among these the Glenburgie, Glentaucher, and Miltonduff.

Ballantine’s was founded in the 1800s — its founder, grocer George Ballantine, Sr., pioneered whisky aging. “George Ballantine was always aging whisky a lot longer than was needed,” said Hamish Houliston, Chivas Regal ambassador (both brands are owned by spirits giant Pernod Ricard). His contemporaries sold whisky young (and usually harsh); but Mr. Ballantine only sold his whiskies when they had mellowed with age. His efforts got his product a Royal Warrant from Queen Victoria in 1895 (George Ballantine, Jr. was at the helm at that point). While the family had sold the firm by the 1920s, the company itself was awarded a coat-of-arms, which the bottles still bear.

Mr. Houliston told a lot of funny stories about the brand during the virtual tasting: its peculiar rectangular bottle was created in the 1920s for easier smuggling in suitcases during the Prohibition Era. Another dotty brand practice is its Scotch watch: a gaggle of geese — guard geese — that they first began to use in 1959 to guard their warehouse. “There was a man in the warehouse who was a very big fan of birdwatching. He suggested that we keep the geese at the warehouse to protect the finest whisky in the land. The geese did a great job. Very noisy,” Mr. Houliston noted.

Aside from Queen Victoria, another great fan of the whisky was US President John F. Kennedy. This was noted by Mr. Houliston, quoting from Robert Caro’s The Passage of Power, one of the books of the multi-volume biography of Lyndon Johnson, Kennedy’s successor. During visits to Johnson’s ranch, President Kennedy would have a supply of Poland water and Ballantine’s nearby.

Mr. Houliston bade us to pour a glass, but even if the brand had such a pedigree, it was loosey-goosey (pardon the pun) with its approach. Of course, the relaxation was with a reason. “Feel free to add some water,” he said. Whisky snobs might turn their noses up at this, but Mr. Houliston said their master blender drinks it at levels of half-scotch and half-water. “If you’re in a garden on a sunny day, and you’re trying to smell a flower, you have to get really close down to it. But after it rains, everything’s opened up, and you can smell [everything]. The flavor’s just a bit elongated,” he said. The scent had some smoke, grass, and some wildflowers thrown in; all in a rush — like drinking in a landscape from the window of a train chugging down the countryside.

The taste notes were composed a bit like an oriental perfume: think orange peel, vanilla, notes of rough honey, some pepper, and even a bit of marzipan. It reminded me of the smell of Guerlain’s L’Heure Bleue perfume, and this must be what the smell tasted like. I was tempted to rub some on my wrists. There’s a lingering heat that tastes mild at first but intensifies the longer it stays in your mouth.

To add to the relaxed attitude of the afternoon, Mr. Houliston mixed up a cocktail of cola and Ballantine’s finest. “Enjoy it however you like,” he said. “Not everybody wants to drink whisky neat or on the rocks,” added Pernod Ricard Philippines Managing Director John O’Sullivan. Alluding to the brand slogan “Stay True,” he said, “I think we’re just being open and staying true. Drink it any way you want to drink it.”

It’s got a coat-of-arms, it does what it wants, and it has a rich Scottish heritage, and had transatlantic fun with the Americans. It’s practically having an aristocrat sit in your liquor cabinet — even if he is number two.

Ballantine’s Finest is available in S&R Membership Shopping stores for a suggested retail price of P599. For online orders, check out Boozy.ph, which retails Ballantine’s Finest at P699. It is also available in leading supermarkets like Puregold, Robinsons, Rustans, Metro Gaisano, Landmark, and Landers. — Joseph L. Garcia

Cebu Air net loss hits over P5 billion on low passenger traffic

CEBU AIR, Inc., the listed operator of budget carrier Cebu Pacific, said Wednesday that its net loss for the third quarter of the year widened to P5.54 billion from the P375.67 million loss it had incurred a year earlier, mainly as a result of the continued low passenger traffic amid a global health crisis.

In a disclosure to the stock exchange, Cebu Air said its total revenues for the third quarter dropped 89.4% to P2.01 billion.

Cebu Air’s third-quarter passenger revenues dropped 97.1% to P379.19 million.

The company saw a decrease of nearly 10% to P1.33 billion in its cargo revenues. Ancillary revenues also dropped 92.9% to P296.28 million.

These brought Cebu Air to a net loss of P14.69 billion for the first nine months of the year from the P6.77 billion profit it generated in the same period last year.

The company’s nine-month total revenues declined 69.6% to P19.34 billion.

“The group saw a 71.9% decline in passenger traffic from 16.7 million to 4.7 million driven by lesser number of flights by 66.3% coupled with a 8.7 percentage points decrease in seat load factor from 87% to 79%,” Cebu Air said.

“Lower average fares by 9.2% to P2,537 for the nine months ended September 30, 2020 from P2,794 for the same period last year also contributed to the reduction of revenues,” it added.

The company’s total assets as of Sept. 30 decreased 15.10% to P133.91 billion from its reported total assets of P157.73 billion as of Dec. 31 last year. Its total liabilities declined 11.4% to P37.81 billion.

The company attributed the decrease in its consolidated assets to the “reduced cash balance and the depreciation recognized for its aircraft during the period.”

Cebu Air’s total equity also dropped 33.6% to P29.81 billion as of Sept. 30, from the total equity of P44.90 billion as of Dec. 31, 2019.

Shares in Cebu Air closed 1.68% lower at P44 apiece on Wednesday. — Arjay L. Balinbin

Liquidity growth slows amid sluggish bank lending

MONEY SUPPLY growth continued to ease in September as bank lending slowed to a 13-year low, with lenders turning cautious in granting credit amid the coronavirus pandemic, which has plunged the economy into recession.

M3, which is considered as the broadest measure of liquidity in an economy, grew by 12.3% in September, easing from the downward-revised 13.7% pace logged the previous month, preliminary data from the Bangko Sentral ng Pilipinas (BSP) released on Tuesday showed. Liquidity growth has slowed for four consecutive months since June’s 14.9%.

The central bank said demand for credit boosted money supply growth in September.

Domestic claims rose 8.2% in September, slowing from the 10% expansion in August.

Net claims on the central government grew 45.7%, also easing from the 50% seen in the prior month, due to the government’s lower funding requirements in September.

Meanwhile, claims on the private sector, driven mainly by lending to firms and households, inched up by 1.4% in September, slowing from the 3.6% expansion in the prior month, dragged by “constrained economic activity and weak corporate sector performance,” the BSP said.

On the other hand, net foreign assets in peso terms grew by a faster pace of 20.6% from 18% the previous month, reflecting the continued buildup of the country’s gross international reserves that stood at $98.95 billion at end-August.

“Similarly, the growth in the NFA of banks accelerated, as banks’ foreign liabilities declined on account of lower bills and bonds payables,” the BSP said.

BANK LENDING GROWTH AT 13-YEAR LOW
Meanwhile, bank lending eased to hit a 13-year trough in September as financial firms were more conservative, tightening their credit standards amid the pandemic.

BSP data released separately showed outstanding loans extended by universal and commercial banks climbed by 2.8% in September, easing from the 4.7% growth in August and marking the slowest pace since the 2.4% seen in June 2007.

Inclusive of reverse repurchase agreements, bank lending growth slowed to 2.9% from the 5.6% logged the previous month.

“The general decline in bank growth partly reflects banks’ reduced tolerance for risk, decline in loan demand due, in turn, to weak business and income prospects and observed shift by non-financial corporates to alternative sources of funds,” the central bank said.

Loans for production activities, which made up 87.1% of total lending that month, rose by 2.4%, slowing from the 4.1% pace in August.

The BSP said loans disbursed to key sectors continued to contract, particularly in manufacturing (-2.6%) and wholesale and retail trade and repair of motor vehicles and motorcycles (-3.4%).

On the other hand, the following sectors contributed to the overall growth in production loans: human health and social work activities (44.5%); information and communication (9.7%); transportation and storage (8.4%); real estate (7.3%); and electricity, gas, steam, and air- conditioning supply (3%).

Meanwhile, bank lending to households rose by 10.2%, down from the 12.9% growth logged the previous month, due to a slowdown in credit card and auto loans, the BSP said.

“Going forward, the BSP remains prepared to calibrate its monetary instruments as needed to ensure adequate domestic liquidity and credit in support of economic activity amid the COVID-19 pandemic,” the central bank said.

“The BSP emphasizes that its accommodative monetary policy stance, together with the National Government’s ongoing health and fiscal initiatives, remains crucial in supporting market sentiment and credit activity. Looking ahead, the BSP reassures the public of its commitment to deploy its full range of instruments as necessary to ensure that domestic liquidity and credit remain adequate amid significant economic disruptions due to the ongoing health crisis,” it added. 

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said banks are being cautious in lending despite regulatory relief and stimulus measures from the BSP as the pandemic continues to cloud the country’s economic outlook.

“Banks will be working doubly hard to sift through and gauge creditworthiness given the very plausible risk factors in these times while households and firms put off aggressive expansion plans until the outlook improves,” Mr. Mapa said in an e-mail.

“The deceleration in bank lending reflects the current trends reported in the [third-quarter] gross domestic product figures with capital formation cratering as both firms and corporates hold back big-ticket investments to wait out the storm,” he added. “It looks as if for now, with the economic recovery uncertain, bank lending and overall investment activity will be on ice, no matter what BSP brings out of its proverbial deep toolkit.”

The central bank has slashed rates by a total of 175 basis points (bps) this year, bringing down rates on the overnight reverse repurchase, lending, and deposit facilities to record lows of 2.25%, 2.75%, and 1.75%, respectively.

It also slashed the reserve requirement ratio (RRR) of big banks by 200 bps to 12%, while the RRR of thrift and rural banks was cut by 100 bps to three percent and two percent, respectively.

Philippine gross domestic product (GDP) shrank by 11.5% year on year in the July to September period, marking its third consecutive quarter of contraction.

Year to date, GDP contracted by 10%. The government expects the economy to shrink between 4.5%-6.6% this year. — L.W.T. Noble

DIY pho at home with PHO24 meal kit

VIETNAMESE restaurant chain PHO24 is trying to make Vietnamese food more accessible while trying to up their customer’s cooking game with pho meal kits.

“Filipinos love flavorful dishes, and they can satisfy their taste buds with something different through Vietnamese food that are deliciously authentic,” said Ned Bandojo, business development head for PHO24, in a statement.

The pho meal kit (pronounced “fuh”), priced at P540 for delivery, contains ingredients for two servings of the chain’s Beef Fillet Pho, said to be made with “100% premium beef slow-cooked in beef broth that has 100% beef shin bones and 24 special ingredients of herbs and spices for that deliciously authentic Vietnamese food experience.”

Pho is a noodle soup widely considered as Vietnam’s national dish and it can come in a variety of forms through the use of different broths and meat parts. But what is non-negotiable are the herbs that make pho pho, and that includes coriander, basil, bean sprouts, and lime.

This writer was sent the kit a week ago and the box contained individually packaged ingredients — the broth, the glass noodles, the herbs (including a couple of slices of chili for those who want a bit of heat), and, of course, the beef.

The box also contains cooking instructions which are pretty easy even for someone who just learned to cook in quarantine like this writer. The most important thing to remember is to thaw the ingredients — the meat and the broth — as the kit comes frozen.

It was a highly enjoyable experience being able to craft your own pho at home, especially when there’s a lack of nearby Vietnamese restaurants in your area. (Though PHO24 only has a branch in Pasay City at the Double Dragon Plaza.)

The Beef Fillet Pho was incredibly umami because of the broth and the herbs gave a refreshing twist to the soup. Also, it was raining when I cooked it so it was the absolute best weather to have pho.

My pho was moderately successful since I did not follow instructions properly and added the noodles to the broth as it cooked. But then again, if you’re a more experienced cook than I am (the bar is set very low), I would assume you’d have no problems doing this better than I did.

Aside from the pho meal kit, the restaurant also offers a Fried Spring Rolls pack (P360 for delivery transactions) and the kit includes 12 pieces of rice paper-wrapped spring rolls and Vietnamese dipping sauce which mainly consists of fish sauce and lime.

Frying these rolls up wasn’t not very hard, though I did lose quite a few because the pan wasn’t very hot when I put them in. Again, it’s my problem and hopefully not yours.

The PHO24 Meal Kits can be purchased via delivery through Facebook Online ordering and food delivery apps GrabFood, Foodpanda, and LalaFood. Those in Pasay City and nearby areas can opt for takeout from its location in Double Dragon Plaza. — Zsarlene B. Chua

Term deposit yields mixed on GDP

YIELDS ON term deposits offered by the Bangko Sentral ng Pilipinas (BSP) ended mixed on Wednesday following the release of third-quarter gross domestic product (GDP) data.

Demand for the central bank’s term deposit facility (TDF) reached P622.436 billion on Wednesday, beyond the P480-billion offering as well as the P593.985 billion in bids the previous week.

Broken down, the seven-day deposits fetched tenders worth P225.195 billion, going beyond the P180 billion on the auction block as well as the P189.03 billion in tenders logged a week ago for the P220-billion offer.

Banks asked for yields ranging from 1.9% to 2.027%, a narrower margin than the 1.88% to 2.1% band logged in the previous offering. With this, the average rate for the tenor settled at 1.972%, inching up by 1.8 basis points (bps) from the 1.954% recorded on Nov. 4.

For the 14-day papers, bids amounted to P397.241 billion, higher than the P300 billion auctioned off on Wednesday but failing to beat the P404.955 billion in tenders for the P270-billion offering last week.

Accepted rates for the two-week term deposits ranged from 1.875% to 2.084%, a slimmer band compared with the 1.875% to 2.1225% logged a week ago. This brought the average rate for the 14-day papers to 2.0138%, slipping by 3.16 bps from the 2.0454% logged in the previous auction.

For the fifth week in a row, the BSP did not offer 28-day term deposits. This follows the start of the central bank’s weekly auctions of its own bills with the same tenor.

The TDF and the BSP’s securities are among regulator’s main tools to gather excess liquidity in the financial system and to better guide market interest rates.

“The results of the TDF auction reflect continued ample liquidity in the financial system with an observed preference for the longer tenor,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the rates fetched for the term deposits reflected market sentiment on the third- quarter gross domestic product (GDP) data released on Tuesday.

“Auction yields were mixed a day after softer-than-expected GDP data but still better a quarter ago,” Mr. Ricafort said in a text message.

The Philippine economy continued to shrink for a third straight quarter although at a slower pace as lockdown measures were further loosened amid the coronavirus disease 2019 (COVID-19) pandemic.

The economy remained in a recession as GDP contracted by 11.5% in the third quarter after the 16.9% plunge in the second quarter, data from the Philippine Statistics Authority (PSA) released Tuesday showed. GDP grew by 6.3% in the third quarter of 2019.

Year to date, the GDP performance stood at 10% contraction. The government expects the economy to shrink between 4.5%-6.6% this year. — L.W.T. Noble

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