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WB finds debt in developing countries at 8-year high

A WORLD BANK (WB) Group study found that total debt in emerging and developing economies (EMDEs), which includes the Philippines, hit an eight-year high last year, increasing at its fastest pace in nearly five decades.

According to World Bank’s Global Waves of Debt report, EMDEs had $55 trillion worth of debt, equivalent to 168% of their gross domestic product (GDP) in 2018, rising by 54 percentage points of GDP since 2010, the year when the debt buildup is deemed to have started.

“The size, speed, and breadth of the latest debt wave should concern us all. It underscores why debt management and transparency need to be top priorities for policy makers — so they can increase growth and investment and ensure that the debt they take on contributes to better development outcomes for the people,” said World Bank Group President David Malpass.

The bank said the rise in debt, at a rate of seven percentage points annually on average, was almost three times faster than the increase recorded during the Latin American debt crisis of the 1970s.

“The increase, moreover, has been exceptionally broad-based — involving government as well as private debt, and observable in virtually all regions across the world,” the bank said.

Despite record-low global interest rates, strong policy frameworks and strengthened international safety nets, it said “the latest wave of debt accumulation could follow the historical pattern and result in financial crises,” as the EMDEs continue to face a “wide range of risks” around the world.

However, the bank noted that the risks of debt accumulation could be mitigated or minimized if it is “well-spent to finance truly output-enhancing purposes and it is resilient to economic and financial market disruptions.”

It also proposed that policy makers should develop schemes that can manage debt costs and benefits while promoting greater debt transparency. — Beatrice M. Laforga

Peso inches down ahead of break

THE PESO closed almost flat on Thursday despite news of US President Donald J. Trump being impeached by the US House of Representatives as investors were cautious with the year coming to an end.

The local unit closed at P50.635 against the greenback on Thursday, shedding less than a centavo from its P50.631-per-dollar close on Wednesday, according to data from the Bankers Association of the Philippines.

The peso opened the trading session at P50.61 against the dollar, which was also its intraday high. Its weakest showing was at P50.665.

Dollars traded climbed to $998.7 million from a volume of $762.1 million on Wednesday.

Despite news on the impeachment case versus Mr. Trump, a trader said the peso continued to move sideways due to the quiet trading usually observed during the holidays.

“This mood of quiet trading will push through until the end of the year with banks already closing their books. They will not risk bigger moves as they wrap up their transactions,” the trader said in a phone call.

According to the trader, the news on Mr. Trump’s impeachment did little to affect currency movements as the markets will also “watch out for the case’s move to the Senate, which is a “Republican majority.”

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the impeachment news is a “potential source of market volatility” which “partly caused some profit taking in some global financial markets.”

“Peso was [also] marginally weaker today after the latest net foreign portfolio investments data…,” he said in a text message on Thursday.

Reuters reported that on Wednesday, the US House of Representatives passed two articles of impeachment against Mr. Trump which sets the stage for a trial next month in the Senate, which is a “friendlier terrain for Trump.” This would determine whether he will be convicted and removed from office.

At home, the Bangko Sentral ng Pilipinas reported that foreign portfolio investments or hot money saw a net outflow of $345.26 million in November, a reversal of the net inflow worth $104.53 million seen in the preceding month.

For today, the trader gave a forecast of P50.55-50.75, while Mr. Ricafort sees the peso trading at a range of P50.40-50.70. — L.W.T. Noble with Reuters

PSEi drops on lack of leads, Trump impeachment

By Denise A. Valdez, Reporter

LOCAL STOCKS failed to hold on to gains on Thursday as investors were worried about the impeachment of US President Donald Trump.

The bellwether Philippine Stock Exchange index (PSEi) dropped 79.73 points or 1.03% to close at 7,653.94 on Thursday. The broader all shares index likewise trimmed 29.14 points or 0.63% to 4,558.85.

“Without any impetus, the local bourse gave up its 7,700 support line today, going down to 7,653.94. Investors can’t find any reasons to stay in the market for now,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message Thursday.

He noted foreign fund outflows also increased yesterday, with net foreign selling growing to P2.05 billion from P1.06 billion on Wednesday.

For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the market’s decline came as “many (kept) an eye on the impeachment of US President Trump.”

The US House of Representatives decided on Thursday to impeach Mr. Trump on the grounds of abuse of power and obstructing Congress. This makes him the third president to be impeached in America’s history, following Andrew Johnson in 1868 and Bill Clinton in 1998.

The decision on Mr. Trump’s impeachment will still be subjected to a trial by the US Senate, which previously decided to acquit both Mr. Johnson and Mr. Clinton.

US stocks traded mostly flat on Wednesday. The Dow Jones Industrial Average and the S&P 500 indices slipped 0.10% and 0.04%, respectively, while the Nasdaq Composite index bumped up 0.05%.

In Asia Pacific, markets were mixed on Thursday: Japan’s Nikkei 225 and Topix indices lost 0.29% and 0.13%, respectively; Australia’s S&P/ASX 200 index gave up 0.27%; China’s Shanghai SE Composite index was flat; and South Korea’s Kospi index inched up 0.08%.

Most Southeast Asian stock markets edged lower on Thursday as investors booked profits ahead of holiday season and as a lack of clarity over the interim Sino-US deal and prospects of a hard Brexit weighed.

Back home, all sectoral indices ended in the red. Industrials lost 110.07 points or 1.14% to 9,498.32; holding firms declined 90.09 points or 1.20% to 7,409.59; financials shed 18.43 points or 1% to 1,811.96; mining and oil fell 25.93 points or 0.34% to 7,485.09; property went down 11.09 points or 0.27% to 4,087.80; and services slipped 1.49 points or 0.09% to 1,532.94.

Value turnover on Thursday stood at P12.60 billion with 591.79 issues changing hands from Wednesday’s P7.80 billion with 1.49 billion issues.

A total of 102 stocks declined yesterday, more than the 67 stocks that gained. Some 63 stocks ended unchanged. — with Reuters

Ampatuan brothers get life in jail for massacre

By Vann Marlo M. Villegas, Reporter

TWO senior members of a powerful political clan in southern Philippines were sentenced yesterday to life in prison for the massacre of more than 50 people a decade ago, in what a global media watchdog has called the single deadliest attack on journalists.

In a 761-page decision, a Quezon City court convicted former Maguindanao Mayor Datu Andal “Unsay” Ampatuan, Jr. and his brother Zaldy, who is a former governor of the Autonomous Region in Muslim Mindanao, along with 26 other principal accused for 57 counts of murder.

More than a dozen more people were convicted as accessories to the crime. Their other brother, Datu Sajid Islam Ampatuan, was acquitted along with more than 50 others.

“This momentous verdict should help provide justice to the families of the victims, and build toward greater accountability for rights abuses in the country,” Phil Robertson, deputy Asia director at Human Rights Watch, said in an emailed statement.

“Advocates should use this verdict to spur further political and judicial reforms to ultimately end the impunity that has plagued the country for far too long,” he said.

“More broadly, this verdict should prompt the country’s political leaders to finally act to end state support for ‘private armies’ and militias that promotes the political warlordism that gave rise to the Ampatuans,” he added.

The massacre took place when family members and the media were accompanying Esmael G. Mangudadatu to the Commission on Elections to file his certificate of candidacy on Nov. 23, 2009. Mr. Mangudadatu was then running for governor of the Mindanao autonomous region to end the 20-year rule of the Ampatuan family.

More than 50 people were murdered, including 32 journalists. New-York based Committee to Protect Journalists called the attack the “worst single incident of journalist killing.”

Judge Jocelyn A. Solis-Reyes said the prosecution proved beyond reasonable doubt that the murders had been planned.

“While the promulgation of judgment on the case is done, the narrative on the protection of media workers is far from over,” presidential spokesman Salvador S. Panelo, who used to lawyer for Andal Ampatuan Jr., said at a briefing.

The Ampatuan camp had reached out to Mr. Panelo in August to ask for President Rodrigo R. Duterte’s intercession in the case.

The judge ordered the Ampatuan siblings to pay P129.57 million in damages to the victims’ heirs.

At least 80 suspects were still at large, many of them close security detail for Andal Ampatuan Jr.

The number of accused in the murder case had been cut from 197 after some of them either died, such as the patriarch Andal Ampatuan Sr. who has since died, or were excluded from the trial.

All the accused were acquitted in one murder count on the ground of “reasonable doubt.” Prosecutors have said Reynaldo Momay, a photojournalist, was the 58th victim of the massacre. His body was not found but his denture and jackets were found at the crime scene.

His name and signature were on the attendance sheet for journalists in the convoy.

“Although not all accused got convicted, we are glad that those who should rightfully be convicted got a life sentence,” Mr. Mangudadatu, now a congressman for Maguindanao, said in a statement in Filipino. “This event proves that there is still justice in our country.”

“We knew from the beginning where our strength lies and where certain gaps in our evidence exist so this is something more or less expected,” Justice Secretary Menardo I. Guevarra told reporters. “We’re happy with the decision of the court.”

“The guilty verdict sends a strong message to the political dynasties in the country that they’re not above the law and that their wrongdoings and abuses can be punished by the state,” Dennis C. Coronacion, who heads the University of Santo Tomas Department of Political Science, said in a mobile-phone message.

The trial court heard 357 witnesses — 134 from the prosecution and 165 from the defense, aside from 58 private complainants.

The court ruling may still be appealed. — Gillian M. Cortez

Marcos family ordered to return $24M in embezzled paintings

THE country’s anti-graft court has ordered the family of the late dictator Ferdinand E. Marcos to surrender to the Philippine government 146 paintings worth $24.3 million, including works by Pablo Picasso and Vincent Van Gogh.

The paintings had been illegally acquired and should be returned, the Sandiganbayan said in a 42-page decision.

It ordered the Marcoses to stop selling or transferring the stolen paintings still in their possession and divulge their location. The family should surrender to the state the proceeds of any paintings that had been sold, the court said.

The anti-graft court has junked at least five government lawsuits seeking to recover billions of pesos of alleged stolen assets from the Marcos family and their cronies in the past four months.

In August, the Sandiganbayan rejected a P102-billion ill-gotten wealth case against Mr. Marcos, his wife and their cronies including Roberto Benedicto.

In September, the court also affirmed the dismissal of a civil case against the heirs of Luis Yulo, a known Marcos associate.

A month later, the court rejected a P1.05-billion lawsuit against Bienvenido Tantoco, Sr. and the Marcos couple involving 11 properties in the Philippines, Hawaii and Rome, shares of stocks in 19 companies, various cash, jewelry and other possessions.

Also in October, the Sandiganbayan junked a P267-million ill-gotten wealth case against the late dictator, his wife and several of their associates for insufficient evidence.

This month, the Sandiganbayan rejected a government attempt to recover P200 billion of alleged ill-gotten assets of the Marcoses for insufficient evidence. — Genshen L. Espedido

Duterte open to peace talks with Maoist rebels

PRESIDENT Rodrigo R. Duterte is still open to peace talks with Maoist rebels despite increasing attacks on government officials, his spokesman said on Thursday.

Nothing will change the president’s decision to resume peace talks with the Communist Party of the Philippines, presidential spokesperson Salvador S. Panelo said at a briefing in Malacañang.

But Mr. Duterte won’t hesitate to “crush” the rebels if attacks continue, he added.

“He always leaves a space, the window ajar for any peace negotiation with them,” Mr. Panelo said. “But he will not allow the attacks, the assaults against our forces that is why if they attempt to that, the order is to crush them.”

The government will tighten security in the metro after receiving intelligence information that Maoist rebels have activated their assassination arm to target state officials during the holidays, National Security Adviser Hermogenes C. Esperon, Jr. earlier said.

He said he had received reports that the Communist Party and its armed wing New People’s Army have operationalized their so-called special partisan units to conduct assassination and terrorist activities in urban areas.

Earlier this month, Interior Secretary Eduardo M. Año said a cease-fire with Maoist rebels was unlikely to happen this holiday season.

On Sunday, the military and Defense department said they would tighten security against communist rebels, who remained a public threat. The military has said it won’t recommend a cease-fire.

“The communist-terrorist group has issued an order launching operations to assassinate people who do not submit to their will as they mark their 51st year of existence and terrorism on Dec. 26,” Mr. Esperon said.

Law enforcement and security forces have been advised to take appropriate countermeasures against the “sinister threat” to peace and order, he added.

This comes after a cop and two civilians were killed in an ambush by suspected Maoist rebels in Borongan, Eastern Samar on Friday. Fifteen others were hurt, including a one-year-old child.

Because of the success of the government’s programs to counter the communist-terrorist groups, they are growing more desperate to stem the tide and cling to whatever dwindling influence they have left, Mr. Esperon said.

He advised the public to remain vigilant and report any suspicious individuals to the authorities.

Mr. Duterte on Dec. 6 said he would send an agent to talk to Maoist leader Jose Maria C. Sison in the Netherlands in a bid to resume peace talks.

He said he would send Labor Secretary Silvestre H. Bello III, who led the government panel on peace talks with Maoist rebels. The panel was dissolved in March.

Mr. Duterte wants to hold the negotiations in the Philippines.

Mr. Esperon is the vice chairman of the National Task Force to End Local Communist Armed Conflict.

Mr. Panelo said that if Mr. Sison, who is in self-exile in the Netherlands, was serious about the peace talks, he should come home. “if you are sincere, venue is not important.” — Gillian M. Cortez

DA says ASF cases tapering off

AGRICULTURE SECRETARY William D. Dar said on Thursday that cases of African Swine Fever (ASF) in the country is already on the decline. “The occurrence, the outbreak is now tapering down, it’s decreasing, so it’s a good pangitain (sign),” he said during a press briefing in Quezon City. He also confirmed that areas in Rizal province previously affected by ASF have tested negative for the past three months, but he said the Department of Agriculture (DA) is being “cautious” in declaring these as officially ASF-free. “Minimum of 90 days for observation. Mayroon namang SURE Aid system na kung anong livelihood ang gusto ng apektado, pero ang sabi namin huwag munang baboy ang alagaan (There is a SURE Aid system that gives affected hog raisers capital to start a new business, but we suggest that they should not raise pigs again just yet),” he explained. Data from the Bureau of Animal Industry (BAI) show that the number of pigs culled totalled 147,334 heads as of December 15, of which 18% were infected by the virus. There were 612 barangays affected in the provinces of Bulacan, Pampanga, Nueva Ecija, Aurora, Tarlac, Rizal, Cavite, Pangasinan, and those in Metro Manila. The DA has a P221.67 million allotment for indemnification to hog raisers whose pigs were culled due to the virus.

ZONING
Mr. Dar also reported that the national task force for ASF finalized last Wednesday the national zoning plan for managing, controlling, and containing the ASF virus. He added that this would be further strengthened when President Rodrigo R. Duterte issues an executive order to encourage all local government units to abide by the plan. Administrative Circular No. 12, series of 2019, dated December 10, contains the National Zoning and Movement Plan for the prevention and control of the virus. Under the plan, provinces and regions will be classified depending on the status of ASF in their areas as well as guidelines on where they could transport their pigs, pork, and pork products. There are two general zones, containment zone and free zone. Containment is further divided into four: infected zone, surveillance zone, buffer zone, and protected zone. Mr. Dar said that it was also agreed during the meeting that only fully-cooked canned pork products would be allowed to be transported to areas across the country, while processed products like longganisa, tocino, and hotdog cannot be transported to clean areas, most especially the Visayas and Mindanao. — Vincent Mariel P. Galang

Shrine for PHL revolution’s hero-journalist Lopez Jaena eyed as added cultural heritage site in Iloilo

By Emme Rose S. Santiagudo, Correspondent

GRACIANO Lopez Jaena is recognized as the first Filipino propagandist who rallied and sought Philippine independence from Spain alongside national heroes Jose Rizal and Marcelo H. Del Pilar.

In his hometown Iloilo, his Dec. 18 birthday is observed as a special public holiday in the city and the entire province.

This year, the city government has committed to help provide the needed funding to complete the development of the hero’s ancestral home in Jaro district into another cultural heritage destination.

Demy P. Sonza, chairman of the Dr. Graciano Lopez Jaena Foundation and a former member of the Iloilo provincial board, said the completion of the shrine has been pending since 2017.

“Last year, around 40% was finished. The previous administration of Mayor Jose S. Espinosa promised to help finish the project but they failed to do so,” he said during Wednesday’s commemoration event.

Under the current administration of Mayor Jerry P. Treñas, the foundation has already signed an agreement for the turn over of the government lot where the shrine and Lopez Jaena’s ancestral home is located.

HISTORY LESSON
“The shrine will be a museum library where Lopez Jaena’s memorabilia and literary works will be displayed for the visitors. It will be an added attraction and cultural heritage place to Iloilo,” Mr. Sonza said.

Lopez Jaena founded the fortnightly newspaper La Solidaridad and made notable literary contributions, the most famous of which is Fray Botod, a satirical character sketch of priests during the Spanish colonization.

“We need to know and appreciate what Lopez Jaena did for our country. Knowing the life of a hero can be very encouraging and it can help us be inspired to do what is best for our country,” Mr. Sonza said.

Nereo C. Lujan, the Iloilo provincial government’s resident historian and was the guest speaker at the event, said it is important to keep history alive and fight revisionism.

“There are a lot of ideas, facts, and figures in our history that have been altered into a different representation for the children. We have ignored the small facts in our history… how do we teach children to love the country if they don’t know their roots,” Mr. Lujan said.

“The challenge of this celebration is for us to love history, study history, and teach our children history,” he added.

Cagayan de Oro starts processing business permit renewals through special kiosks and online

THE CAGAYAN de Oro City government announced that it has started processing business permit renewals, ahead of the usual January period. In a statement on its official social media page, the City Finance Department urged businesses to take advantage of the early opening of the assessment period, which can be done through special kiosks or the online billing and payment system on the cagayandeoro.gov.ph site. After the assessment, payments can also be made online or through the city cashiers, according to Acting Assistant City Treasurer for Operations Leonil Mistul. After payment, business representatives can head to the City Tourism Hall for the processing of the actual business permit and license along with the sanitary permit and Fire Safety Inspection Certificate. The business permit renewal period will close Jan. 20. The Business One-Stop Shop at the City Hall, meanwhile, will be handling new business applications.

BTA committee on Marawi City to hold public hearings on rehabilitation

THE BANGSAMORO Transition Authority’s Special Committee on Marawi will hold a series of public hearings starting January to put together a report intended to help improve the slow implementation of the rehabilitation plan for the city that was devastated in 2017. Amir S. Mawallil, a member of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Parliament, said the committee’s report will be submitted to the parliament. Among those to be invited for the hearings include members of civil society, government officials, and representatives of the internally displaced persons (IDPs). Local extremist group Maute, which has links to the Islamic State, led a siege of Marawi City on May 23, 2017. The battle with government troops lasted for five months, leaving central parts of the city in ruins.

HOUSE
At the House of Representatives, two resolutions have been filed calling for an inquiry in aid of legislation on the rehabilitation process status as well as the disbursement of funds. These are House Resolutions 377 and 470 filed by Representatives Lucy Marie Torres-Gomez (Leyte 4th District), Mujiv S. Hataman (Basilan) and Amihilda J. Sangcopan (Anak Mindanao Party-list). At a hearing of the House committee on disaster management on Dec. 18, the Marawi Reconstruction Conflict Watch (MRCW) gave a statement citing that: “The general sentiment of the Maranaos is that there is very little progress in the actual rebuilding of Marawi City. There is confusion on the ground regarding discrepancies between proposed plans and actual projects and services delivered.” MRCW is a multi-stakeholder group of professionals, experts, and network leaders that aims to help ensure that the reconstruction of Marawi City is inclusive and conflict-proof. “The lack of transparency and public accountability of the TFBM (Task Force Bangon Marawi) and relevant agencies brings uncertainty, insecurity, and frustration to the IDPs and fuels the people’s despair and anger towards the government, which makes those who suffer the most more vulnerable to the lure of extremist thinking and heightens their propensity for violence,” the group said. — MSJ

Nationwide round-up

Group denounce Golden Rice approval

IRRI

A GROUP of farmers and scientists expressed disappointment over the approval of the biosafety permit of Golden Rice despite health issues related to its consumption. “We are appalled that the approval has pushed through despite the numerous unresolved issues that MASIPAG and many other organizations are raising regarding Golden Rice, mainly on its safety and long-term effects on children, women and other consumers,” Magsasaka at Siyentipiko para sa Pag-unlad ng Agrikultura (MASIPAG) Chairman of the Board Elpidio E. Paglumotan said in a statement on Thursday. MASIPAG is a farmer-led group of people’s organizations, non-government organizations, and scientists, which promotes the welfare of the country’s farmers. The Department of Agriculture (DA), through the Bureau of Plant Industry (BPI), has approved the commercial use of Golden Rice as food, feed, or for processing (FFP). Golden rice, a variety produced through genetic engineering, aims to provide 30%–50% of the estimated average requirement of Vitamin A of the body. “With this FFP approval, we bring forward a very accessible solution to our country’s problem on Vitamin A deficiency that’s affecting many of our pre-school children and pregnant women,” Philippine Rice Research Institute (PhilRice) Executive Director Dr. John C. de Leon said in a statement on Wednesday. PhilRice, which applied for the permit in 2017 to be able to conduct field trials, and the International Rice Research Institute (IRRI) have been pushing for the commercial use of Golden Rice. However, groups protesting against the variety have noted that beta-carotene, which is contained by the rice variant and is being converted to Vitamin A by the human body, degrades fast after harvesting and processing. A study by the Indian government showed that 84% of the beta-carotene in Golden Rice can be lost unless vacuum-packed and refrigerated. High temperature and humidity also leads to degradation of the antioxidant, while cooking will lead to a 25% loss of beta-carotene. “Proponents have failed to address concerns on the Golden Rice’s negligible beta-carotene content, its fast degradation and the possible toxicity associated with the beta-carotene degradation,” MASIPAG National Coordinator Cris Panerio said. The group also said that the lack of transparency and speed of approval of its permit shows the “desperation” of the concerned agencies to bring in the rice variety. — Vincent Mariel P. Galang

Nation at a Glance — (12/20/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (12/20/19)