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Decision on who covers cost of postponing Tokyo Olympic Games seen a ‘challenge’

TOKYO 2020 Olympics organizing committee president Yoshiro Mori has told international federations that deciding who foots the bill for postponing the Games to 2021 will be a “major challenge,” Olympic news Web site insidethegames reported on Saturday.

The International Olympic Committee (IOC) and Japanese organizers last week postponed the July 24-Aug. 9 event due to the coronavirus pandemic — the first such delay in the modern Games’ 124-year history.

Japan invested $12 billion in the run-up to the Games and IOC President Thomas Bach had warned that the price tag will rise further.

“The extra cost that will arise from this postponement is inevitable,” Mori wrote in a letter addressed to the 33 international federations of sports that make up the Tokyo Games program.

“Deciding who will bear these costs and how it will be done will be a major challenge.”

Mori also issued a rallying cry to deliver the Olympic and Paralympic Games Tokyo 2020 next year and show that humans had “triumphed over the coronavirus.”

The Tokyo 2020 organizing committee launched a task force to resolve issues linked to the postponement, such as reviewing dates for the Games and securing venues.

The Olympics is one of many major sporting events which have been postponed, suspended or cancelled due to the coronavirus. — Reuters

Local sports agency monitoring condition of national athletes

THE coronavirus disease 2019 (COVID-19) pandemic has put sporting affairs in the country on hold but it has not stopped the Philippine Sports Commission (PSC) from dispensing its duties, particularly in securing the safety and wellness of the country’s national athletes.

In a situation update shared to Radyo Pilipinas 2 late last week, PSC National Training Director Mark Velasco said the agency is on top of things three weeks since the government’s declaration of a state of public health emergency and calling for enhanced community quarantine as the country battles the spread of COVID-19.

Mr. Velasco said that they are taking care of some 30 athletes and coaches in their facility at the PhilSports Complex in Pasig City.

Food is being provided to them while they are also being checked on regularly to see if they are in good health.

The PSC official said that some have complained of occasional headaches and minor ailments but thankfully none has shown any symptoms of COVID-19 by the time the update was shared.

The PSC has also made resources available to give continued service and assistance to national athletes be it online or through phone calls, providing the latter an avenue to share their concerns to sports psychologists and pertinent personnel. Medical doctors, Mr. Velasco said, are also on standby in case the need arises.

Mr. Velasco also said their monitoring extends as well to Filipino athletes training abroad, including Olympians EJ Obiena (pole vault) and Hidilyn Diaz (weightlifting).

Currently in Italy for training, Mr. Obiena is safe, Mr. Velasco said.

But monitoring of his condition is keenly done with Italy among the hardest hit by COVID-19 in the world.

Olympic silver medallist Ms. Diaz, meanwhile, is in Malaysia with her team. Like Mr. Obiena, Ms. Diaz is doing well and keeping herself safe.

Mr. Velasco said that Mr. Obiena and Ms. Diaz should ask to be returned to the country they will be ready to make arrangements for it.

Meanwhile, with the 2020 Olympics deferred to next year as COVID-19 rages on, Mr. Velasco said the country’s preparation is ongoing.

“We are in constant contact with CDM Nonong Araneta as to our moves moving forward,” said Mr. Velasco, referring to Philippine chef de mission to the Tokyo Olympics Mariano Araneta.

Last week the International Olympic Committee and the Japanese government agreed to postpone the Tokyo Games to no later than the summer of 2021 so as the world could focus on the battle against COVID-19, which has affected more than 600,000 people worldwide to date.

In the Philippines, as of this writing, there are now 1,075 confirmed cases of the disease. — Michael Angelo S. Murillo

PBA players use esports to lend a hand in COVID-19 fight

WITH the Philippine Basketball Association season suspended indefinitely because of the ongoing concern on the spread of the coronavirus disease 2019 (COVID-19), league players are channelling their attention to their other passions to remain preoccupied with some using these as platforms to lend a hand during these uncertain times.

Veteran Magnolia forward Mark Pingris and six-time PBA most valuable player June Mar Fajardo of San Miguel are among those tapping on their passion for esports to help in their own way in the battle locally against COVID-19.

The two are part of the “Lockdown Games” which aims to raise P1 million to help the UP Medical Foundation iin its push to help stop the spread of the new coronavirus in the country.

The Lockdown Games is being done on the lead of esports organization Mineski.

The tournament began on March 24 with Marvel Super War games which were played until March 26.

Mr. Pingris shared that by the end of the Marvel Super War games nearly P400,000 had already been raised.

Next to be played from March 30 to April 2 is Call of Duty. On April 5, DOTA 2 is the tournament to be played.

On April 6, Messrs. Pingris and Fajardo will be competing in the DOTA 2 Showmatch along with fellow PBA players and esports enthusiasts Kiefer Ravena of NLEX and Japeth Aguilar of Barangay Ginebra.

The match will be broadcast over MineskiTV beginning at 5 p.m.

Mr. Pingris encouraged the gaming community to support the Lockdown Games and pledge their support to the fund-raising campaign to sustain the fight against COVID-19.

For information on how to support and donate to the Lockdown Games, check out MineskiTV’s Facebook page.

Handling the crisis

The National Basketball Association has invariably been at the forefront of social activism. Unlike most other significant organized bodies in sports, it hasn’t been afraid to stand up for the needs of the greater community of which it’s part even at the expense of its stakeholders. In this regard, it’s fortunate to have progressive officials who take the long view and understand that, often, moving forward means first taking a step back. Earlier this month, for instance, it didn’t think twice about suspending the 2019-20 campaign after it recorded its first positive new coronavirus case. And then late last week, some 100 of its top officials saw fit to voluntarily take whopping pay cuts — equivalent to a fifth of their salaries — in order to ease the effects of the pandemic on other employees.

Make no mistake. The NBA is a business, and the league office works to bring in the revenue for its 30 franchise owners. In large measure, the profit motive is why it views cancelation of the remainder of the season as a last resort. After having already seen hundreds of millions of dollars go down the drain as a result of China’s partnership pullout in protest of Rockets general manager Daryl Morey’s exercise of free speech, the last thing it needs is to see loss projections include nine zeros. And yet what it will not do is put public safety on the line just so it can secure immediate return on its investment.

Indeed, the NBA is blazing a trail in the way it’s handling the crisis. Many of its endeavors have rightly been highlighted, their prominence in social media aided in no small measure by the active engagement of its players. Still many others have not, as clear an indication as any of its principal objective to help at a time when help is needed, period. Eyeballs are optional — immaterial, even. Take the Jr. NBA at Home component of its global NBA Together campaign. Found on https://jr.nba.com/jrnbaathome/, it serves as a repository of content to inspire the youth and other members of families around the globe to stay active and connected.

Those who head over to the site will find a no-frills layout featuring workouts and drills shared by NBA and WNBA stars and tacticians. The videos are short, perfect for a target audience with short attention spans. More importantly, they’re replicable in confined spaces — enabling practitioners to stay healthy and safe while following social distancing protocols. From the outside looking in, the project comes off as one that both means business and knows its business, a testament to the work done behind the scenes by league senior vice-president David Krichavsky and his youth development staff.

With quarantine measures in place to restrict the spread of COVID-19, the impact of Jr. NBA at Home cannot be emphasized enough. It’s reaching out through daily posts on Facebook, Twitter, and Instagram, as well as on other digital channels, and, in the process, underscoring the value of togetherness. Isolation doesn’t mean being alone. Staying at home doesn’t mean being inactive. And if the five and a half million views (and counting) are any indication, the league is connecting with fans extremely well and succeeding the way it has long been: as a family.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

alcuaycong@bworldonline.com

‘Significant’ hit to economy seen in 1st quarter; magnitude uncertain

THE ECONOMY is expected to “significantly” slow down in the first quarter after the government imposed lockdown measures that halted much economic activity, on top of global supply chain disruptions dating back from China’s COVID-19 outbreak, economists said.

In their February issue of The Market Call released yesterday, First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) said: “Undoubtedly, Philippines GDP growth will take a big (hit) in Q1 thanks to COVID-19, albeit the magnitude remains uncertain.”

FMIC and UA&P said the blow to both the global and Philippine economies will be “significant” in the first half.

Socioeconomic Planning Secretary Ernesto M. Pernia has said the economy can still expand by 5% in the first quarter while Bangko Sentral ng Pilipinas (BSP) Governor said positive growth is still possible at around 3% during the first quarter.

ING Bank NV- Manila estimates that a 5.3% GDP expansion is still possible this year given a “substancial fiscal punch” translating to 1.5% of GDP. However, it said the economy could contract by -0.1% if the four-week enhanced community quarantine is extended by another month, combined with a “meager fiscal response” equivalent to a 0.1% boost to GDP.

“On top of size of the fiscal package, the scope of the recovery plan will be just as crucial. We expect the government rescue package to at least cover these 3 areas: 1) income replacement, 2) tax forbearance and 3) loan and liquidity support,” ING Bank NV- Manila Senior Economist Nicholas Antonio T. Mapa was quoted as saying.

The National Economic and Development Authority (NEDA) released preliminary estimates that 2020 GDP growth could expand by up to 4.3% if the pandemic is contained. In the worst case, it could contract by 0.6% if the month-long enhanced community quarantine is extended.

The Market Call report said factors that could cushion the blow include low unemployment of 5.3% in January, low inflation of 2.6% last month and the 50-basis point (bp) cut on interest rates delivered by the central bank.

“In addition, front-loading of infrastructure and government spending should also ease the pain. We see a V-(shaped) recovery as soon as the spread and fatality rates of the virus clearly decelerate,” it added.

The economists also see inflation slowing further amid plunging oil prices, which “should more than compensate for added inflation due to supply chain disruptions.”

On the monetary side, another 25-bp cut is expected next quarter to cushion the blow on the economy.

The report also expects the peso to continue to weaken in the first half due to the outbreak and a higher balance of trade deficit.

“But while we feel more optimistic for H2, this may vanish if the virus’s spread and death toll do not significantly ease. Morbid fear and hysteria have driven investors to turn to cash rather than coldly stick to a risk-return approach,” it added.

The government rolled out an initial P27.1-billion funding package to help distressed sectors while a recently-signed stimulus package law allows the government to realign as much as P275 billion from the national budget and make off-budget outlays for COVID-19 relief measures. — Beatrice M. Laforga

Power producers urged to lower electricity rates

A CONSUMER GROUP on Saturday urged power producers to reduce the cost of electricity as power demand and prices continue to drop during the Luzon-wide lockdown.

In a letter sent to the Philippine Independent Power Producers Association, Inc. (PIPPA), Laban Konsyumer, Inc. (LKI) noted that the power demand and supply gap dropped 50% during the enhanced community quarantine, which can be treated as a “force majeure” event.

“(I)t is a difficult situation nowadays for the Filipino consumer, especially when it comes to making money, since most people are not able to work any longer. Because of this, our group is calling on the owners of the power plants to find a way to lower the power generation costs that they will be passing on to consumers,” LKI President Victorio A. Dimagiba said in the letter posted on the group’s website Saturday.

The group urged power generation companies “to avoid stranded cost(s) or refuse fixed costs that will be shouldered by customers” in their contracts with distributors.

The Department of Energy (DoE) reminded generation companies on March 26 that they cannot shut down their operations despite energy demand falling by around 30%.

“A decline in power demand does not mean that operations could and should be put to rest,” Energy Secretary Alfonso G. Cusi said in a statement.

Meanwhile, LKI said distribution utilities and electric cooperatives, which obtain their electricity from supply agreements and independent producers, would not invoke a force majeure provision on their supply contracts to pull down contract capacity or minimum charges because it might affect their income.

On Friday, Power Sector Assets and Liabilities Management Corp. said it will not allow the suspension or lowering of the minimum energy off-take or the so-called minimum charges by distribution utilities unless there is a declaration of force majeure.

Earlier, Manila Electric Co. extended the due date of its customers’ payments of bills falling from the quarantine period by 30 days from April 14, in compliance with the DoE’s order to provide relief to consumers affected by the lockdown.

The Energy Regulatory Commission also suspended feed-in-tariff allowance collection, effectively cutting the electricity rate by P0.04 per kilowatt-hour in the next billing cycle.

“These are emergency times, and desperate measures must be undertaken to keep ourselves afloat. With this low demand for power, one good outcome of all this chaos can be the lower generation rates being paid to the big power plant owners,” Mr. Dimagiba said.

PEZA seeks gov’t aid to house eco-zone workers

THE Philippine Economic Zone Authority (PEZA) is requesting assistance from the national and local governments in housing and transporting employees during the Luzon lockdown.

In a statement Saturday, PEZA said Director General Charito B. Plaza wrote to President Rodrigo R. Duterte on Friday encouraging the President to both protect public health and support the economy.

Ms. Plaza said that PEZA has been complying with the enhanced community quarantine (ECQ) requirements, by providing temporary housing and shuttle services for workers.

But she noted that PEZA cannot provide such services to the entire workforce. PEZA’s 406 economic zones directly employ 1.6 million people.

She proposed that public schools and other buildings be used as medical facilities after hospitals with no remaining beds began turning away persons under monitoring or investigation for COVID-19.

Some of these buildings, she said, should house eco-zone workers.

“For economic purposes, some of them may be utilized to temporarily house eco-zone workers who are challenged by the IATF (Inter-Agency Task Force) restrictions on movement of eco-zone personnel,” she said.

“The idle buildings and warehouses, whether public or private, may also serve as logistics facilities particularly for food products to ensure food security.”

Ms. Plaza added that the IATF and local government units should assist companies that need housing, transportation, and personal protective equipment. Ms. Plaza also asked for “safe passage through the checkpoints for eco-zone cargoes and shuttle buses ferrying the workers.”

Under the ECQ declared in response to the COVID-19 outbreak, outsourcing and export-oriented businesses may continue to operate as long as work-from-home measures are in place and a minimal level of in-office staff are given temporary accommodation.

Business groups had earlier expressed concerns about the implementation of national government directives to allow all cargo to pass unhampered through checkpoints. The trade department said last week that it expects the movement of cargo to improve. — Jenina P. Ibañez

Tax breaks in these trying times

(First of two parts)

The government has announced several measures to contain the spread of COVID-19. President Rodrigo R. Duterte has placed Luzon under enhanced community quarantine and imposed stringent social distancing measures, with the entire country under a state of emergency.

With the goal of protecting the health and safety of all taxpayers from the further spread of COVID-19, the Bureau of Internal Revenue (BIR) issued specific guidelines/circulars to be observed during the quarantine period.

In Revenue Memorandum Circular (RMC) No. 25-2020 dated March 16, the BIR originally maintained its position that no extension of deadline shall be provided for the filing of 2019 annual income tax return (ITR) despite the quarantine being strictly implemented.

However, considering the limitations in preparing the annual ITR and possible errors in determining the income tax due, taxpayers can amend the annual ITR filed, provided the concerned taxable period has not yet been subject to an audit. The additional income tax liability resulting from any amendment is to be paid without penalties if paid on or before June 15.

The same circular also encouraged taxpayers, even those not required, to use the electronic filing facilities of the BIR (e.g., the electronic filing and payment system [eFPS] and eBIR Form Facility) to limit taxpayers’ movements and possible exposure to the virus.

However, various stakeholders and associations raised concerns that the measures being implemented by the national government will have a significant impact on meeting the existing tax, accounting and auditing requirements. There may be delays in auditing the balances of companies and businesses due to, among others, fieldwork or meetings suspended and the work from home scheme enforced.

ITR DEADLINE EXTENSION
Fortunately, the BIR issued RMC No. 28-2020 dated March 18, amending RMC No. 25-2020. This amendment extends the filing deadline of the 2019 annual ITR and payment of the tax originally due on April 15 to May 15, without the imposition of penalties.

Under this circular, taxpayers may file and pay the corresponding taxes due at any Authorized Agent Banks (AABs) nearest to the location of the taxpayer or to any Revenue Collection Officer (RCO) under the Revenue District Office (RDO). In other words, taxpayers may file and pay at their most convenient location.

According to the press release of the Department of Finance (DoF), these emergency measures are offered to provide relief to taxpayers who will not be able to prepare, let alone file, the necessary ITR documents on or before the original annual deadline of April 15 because of minimal-staffing arrangements and enhanced community quarantine rules.

In addition, the DoF estimated a shortfall in tax collections of around P145 billion, for which the national government may have to make up for with additional borrowing. Hence, the BIR urges taxpayers who are ready and able to file their ITRs to do so on or before the original deadline.

DEADLINE EXTENSION FOR TAX RETURNS AND ATTACHMENTS
The BIR likewise provided deadline extensions for other tax filings. On March 19, BIR Commissioner Caesar Dulay issued RMC No. 29-2020, amending RMC No. 26-2020 by extending the deadlines (by approximately one month) for the filing of various returns and payment of taxes due. Consequently, the BIR collection of taxes related to such tax filings may be delayed by approximately one month.

The provisions of RMC No. 28-2020 (extension of deadline for filing of annual ITR and payment of the related income tax due) and RMC No. 29-2020 (extension of deadlines for filing of various returns and payment of related taxes due thereon) were further amended and clarified by RMC No. 30-2020 dated March 23.

Under this circular, the required attachments for the filing of annual ITR are to be submitted on or before May 15. Moreover, deadlines were extended for other reportorial requirement submissions and one-time transaction (ONETT) payments. In general, a 30-day extension will be granted in case the deadline falls within the quarantine period.

RMC No. 30-2020 also provided clarity by addressing inadvertent errors on the due dates in the filing of certain tax returns and payment of the related tax due thereon under RMC No. 29-2020.

We should note that the BIR qualifies the application of the circular to Luzon, including the National Capital Region (NCR), which are under enhanced community quarantine and/or similar measures, and to other jurisdictions where Local Government Units have also adopted such measures.

VAT REFUND APPLICATION EXTENSION
Aside from the deadline extensions of these various tax returns and attachments, the BIR also extended the deadline for the filing of Value Added Tax (VAT) refund applications and the 90-day processing period through the issuance of RMC No. 27-2020 dated March 18.

This allows the filing of VAT refund applications covering the quarter ended March 31, 2018 to still be accepted until April 30, 2020. The original deadline was March 31, this year.

The 90-day processing period is also suspended for VAT refund claims that are currently being evaluated and those that may be received from March 16 to April 14. The counting of the number of processing days will resume after the enhanced community quarantine is lifted.

CONDUCTING FIELD OPERATIONS
Similarly affected is the conduct of audit/investigation/other field operations by revenue officials and employees. In relation to this, Deputy Commissioner (Operations Group) Arnel SD. Guballa, issued Operations Memorandum No. 20-2020 dated March 17.

Under this memorandum, Revenue Officers will continue to work on their assigned cases, whether prescribing or not, based on the documents previously submitted by the taxpayers to the BIR and other information available to the Bureau. Officers are encouraged to work from home but without sacrificing the security of the data and information being handled. Non-prescribing audit cases which are still lacking documentary evidence were given a 30-day extension for the submission of the report of investigation.

In addition, field audit/investigation, any form of business visitation or any field operations have been suspended. Likewise, personal service of electronic Letters of Authority (eLAs), Notice of Informal Conference, Discrepancy Notices or Missions Orders have been temporarily shut down during the quarantine period.

Should a taxpayer appear in the BIR office to submit documents, such documents are to be received without delay and without further verbal discussion with the taxpayer in order to limit contact and maintain social distancing.

In summary, the extended deadlines are as follows:

• ITR filing — May 15

• Tax returns & attachments — May 15

• Additional tax liabilities — 30-day extension

• VAT refund applications — April 30

• Non-prescribing audit cases lacking documentary evidence — 30-day extension

FACING THE CHALLENGES
While the government endeavors to address every Filipino’s need for basic services, health and safety, it is imperative that we as taxpayers likewise fulfill our duties and obligations as citizens. In our current situation, the maxim that taxes are the lifeblood of the country has never been more apt.

However, life — and taxes, as the main source of government resources — must go on. Without taxes, government agencies cannot continue to operate. Hence, the need to collect taxes must necessarily be balanced against other interests.

The deadlines and timelines mentioned in this article are pursuant to the author’s understanding of the administrative issuances of the BIR as of the date of writing. These may be subject to change in light of the recently passed RA No. 11469 or the “Bayanihan to Heal as One Act,” which authorizes the President to move statutory deadlines and timelines for the submission of documents and payment of taxes, fees, and other charges required by law, among others.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views reflected in this article are the views of the author and do not necessarily reflect the views of SGV, the global EY organization or its member firms. EYG no. 001498-20Gbl

 

Noel Andro D. Bico is a Senior Associate from the Global Compliance & Reporting Sub-Service Line of SGV & Co.

[B-SIDE Podcast] Manila, Manila

Follow us on Spotify BusinessWorld B-Side

While Luzon is on lockdown, let WanderManila head tour guide Benjamin Canapi tell you about his love affair with the City of Manila. This historical city has been a venue for international trade for 400 years. It bore witness to Spanish colonial rule, the Japanese regime, and the Second World War. Mr. “B. Canapi,” who has done walking tours since 2012, chats with Arts and Leisure reporter Michelle Anne P. Soliman about the city’s history beyond classroom lectures and history books. He also remembers the late Intramuros tour guide, activist, performance artist Carlos Celdran; and considers the future of walking tours in Manila. This episode was recorded on February 24, before Luzon was placed under enhanced community quarantine, at the BusinessWorld Studio in New Manila, Quezon City. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

Follow us on Spotify BusinessWorld B-Side

BSP may pump more money into system amid outbreak

THE Philippine central bank is expected to pump more money into the financial system as low lending rates fail to stimulate an economy that has been put into a standstill by a novel coronavirus pandemic.

“Quantitative easing measures, through bond purchases and other tools by central banks are faster to implement and have immediate positive effects on the economy and financial markets,” said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

They are unlike stimulus measures that may require more time through legislation, he said in an e-mailed reply to questions.

The Bangko Sentral ng Pilipinas (BSP) earlier went on a buying spree of three-month government securities worth $300-billion from the Bureau of the Treasury under a repurchase agreement payable in six months.

Both quantitative easing measures and policies are needed at a time of a pandemic, according to Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc.

“With the magnitude of an impact such as a pandemic, all monetary and fiscal means should be on deck, and nothing should be left unused,” he said.

Quantitative easing would also help boost lending, apart from the liquidity boost and rate cuts enforced by the central bank, said Robert Dan J. Roces, chief economist at Security Bank Corp.

“The additional reserves would kick-start lending, causing broad money growth to expand, and eventually lead to an increase in real economic activity,” he said in an e-mail.

STRONGER MEASURES
Meanwhile, BSP needs to come up with a bigger and stronger scope of response to ensure the economy is better cushioned from the impact of the COVID-19 pandemic, analysts said.

The economic effects of the pandemic could be worse than the 2008 global financial crisis, UnionBank’s Economic Research Unit said in a report, adding that the government needs to boost its response.

“By mere optics, the current crop of policies may have to be augmented further and a more targeted policy support is very much needed,” it said in an e-mailed note.

The share of exports, imports and tourist arrivals in the gross domestic product (GDP) last year rose to 59.3% (from 52.9%), 68.7% (from 50.1%), and 12.7% (from 5.9%), respectively from 2007, the bank said, citing government data.

On the other hand, the share of consumption and remittances in the economy fell to 68.4% (from 71.6%) and 8.5% (from 9.7%), respectively. In absolute amount, consumption almost doubled to P6.7 trillion last year from 2007, while remittances more than doubled to P30.1 billion

“Apart from the trade’s bigger part of the economy, tourism has more than doubled in terms of GDP contribution,” according to the report.

“Aggregate consumption, the biggest contributor to GDP, and remittance inflows have continuously supported economic growth for more than a decade,” it added.

“An estimated deeper impact of the COVID-19 pandemic on the bigger real macroeconomy, compared with the economic losses caused by the global financial crisis warrants wider and more encompassing policies,” it added.

The month-long lockdown in Luzon, which contributes 70% to GDP, is expected to slow the economy. Tourism, trade and remittances are also expected to suffer because of the outbreak.

Economic managers have estimated losses of P428.7 billion to P1.355 trillion in gross value added or about 2.1% to 6.6% of GDP. The government had targeted growth of 6.5-7.5% this year.

“If we are going to take their initial assessments seriously, then the response to this pandemic should be stronger and the scope bigger,” according to the report.

The central bank cut policy rates by 50 basis points this month and will buy P300 billion worth of securities from the Treasury bureau to help fund government initiatives related to the outbreak.

On Thursday, it remitted in advance P20 billion in dividends to the National Government to help it deal with the health crisis. — Luz Wendy T. Noble

February outstanding debt rises on bond sales

THE National Government’s outstanding debt rose by 5.2% from a month earlier to P8.165 trillion as of end-February due to bigger sales of both foreign and local bonds, according to the Treasury bureau.

The total debt stock increased 9.6% from a year earlier, it said in a statement on Friday.

Domestic debt accounted for 66.7% of the total at P5.449 trillion, while the rest or P2.715 trillion was obtained from external creditors, the bureau said. Domestic debt rose by 6.4% from a month earlier and by 11.3% year on year, it added.

The Treasury bureau traced the increase to the net issuance of government securities worth P326.06 billion, the bulk of which was in the form of retail Treasury bonds worth P310.8 billion sold in February.

External debt rose by 2.9% from a month earlier to P2.715 trillion as of end-February, and by 6.4% from a year earlier.

Additional foreign loans that month added P70.9 billion to the outstanding debt stock, including 1.2 billion euros ($1.3 billion) worth of three- and nine-year euro-denominated global bonds sold.

Availment of the World Bank’s $100- million International Bank for Reconstruction and Development (IBRD) program loan also added to the stock, the Treasury bureau said.

“For February, external debt grew due to the effect of currency fluctuations on both dollar- and third currency-denominated debt amounting to P2.18 billion and P3.8 billion, respectively,” the agency said. — Beatrice M. Laforga

COVID-19 cases rise to 803; death toll at 54

By Vann Marlo M. Villegas, Reporter

THE Department of Health (DoH) on Friday reported yet again the biggest daily increase in novel coronavirus infections with 96 new cases, bringing the total to 803.

The death toll rose by nine to 54, while three more patients recovered, bringing the total to 31, according to a DoH bulletin.

Health Undersecretary Maria Rosario S. Vergeire traced the increase to more tests being conducted by local laboratories.

The three who recovered were all males aged 25, 48, and 51 with no underlying medical conditions.

The ages of the nine patients who died ranged from 57 to 83 years old, all of whom had underlying medical conditions, DoH said.

Ms. Vergeire said 2,147 people have been tested for the COVID-19.

She said they expect the Research Institute for Tropical Medicine to certify the sub-national laboratories of San Lazaro Hospital, Baguio General Hospital and Medical Center, Vicente Sotto Memorial Medical Center, and Southern Philippines Medical Center for Mindanao within the day.

They were initially given 5,000 test kits and they can conduct as many as 160 tests daily, she said.

She also said that more than 30 public and private hospitals have expressed a desire to become COVID-19 testing laboratories and were sent a self-assessment tool to determine their capacity.

The DoH personnel have visited some of these hospitals, including St. Luke’s Medical Center in Quezon City and Taguig City, Makati Medical Center, Medical City, Western Visayas Medical Center, Bicol Public Health Laboratory and the Armed Forces Research Institute for Medical Sciences.

Also on Friday, the Department of Education (DepEd) said it was open to turning schools into facilities for COVID-19 patients, subject to conditions.

Education Undersecretary Annalyn Sevilla told a separate news briefing DepEd chief Leonor Briones had issued guidelines in using schools as COVID-19 facilities.

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