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A $13-trillion crisis-era debt bill comes due for the biggest economies

THE Group of Seven nations plus key emerging markets face the heaviest bond maturities in at least a decade. — BW FILE PHOTO

THE WORLD’S biggest economies shouldering record debt burdens are about to confront an unwelcome legacy of the financial crisis: a $13-trillion debt bill.

The Group of Seven nations plus key emerging markets face the heaviest bond maturities in at least a decade, much of them borrowings to dig their economies out of the worst slump since the Great Depression. According to data compiled by Bloomberg, these governments may need to roll over 51% more debt than in 2020.

The good news is that both central banks and investors are on their side. Policy makers facing lingering economic challenges from the pandemic are likely to stay accommodative — and keep borrowing costs low. Bonds remain a sought-after haven amid the virus’s rising toll on health and economies.

“Government debt ratios have exploded, but I believe that the short-term worrying over a rising debt is fruitless,” said Gregory Perdon, co-chief investment officer at Arbuthnot Latham. “Debt is leverage and assuming it’s not abused, it’s one of the most successful tools for growing wealth.”

Refinancing needs are the biggest in the US, with $7.7 trillion of debt coming due, followed by Japan with $2.9 trillion, according to Bloomberg data. China’s tab rises to $577 billion from $345 billion last year. In Europe, Italy has the heaviest bill of $433 billion, followed by France’s $348 billion. Germany has $325 billion due versus $201 billion last year. Not all these maturities will necessarily be extended by fresh borrowings.

To be sure, growth lift-off is still expected to translate into higher yields, with the median of economists surveyed by Bloomberg calling for a 10-year Treasury yield of 1.24% by the fourth quarter.

Yet the onus remains on the world’s policy makers to keep rates low to foster the global economic recovery. The Federal Reserve is on pace to buy nearly half the $2 trillion of net supply TD Securities expects the US government debt to issue this year.

In Europe, the result of central bank bond buying will help create a supply shortfall of €133 billion ($164 billion), according to Jefferies International.

“The practical reality is that debt levels and rates are linked, because most of the developed world cannot afford higher interest rates,” said Steven Major, the global head of fixed-income research at HSBC Holdings Plc. — Bloomberg

Arts and Culture (01/06/21)

Major watercolor exhibit goes virtual

THE PHILIPPINE Guild of Watercolorists, Inc. (PGW), will be opening its annual exhibit — which is also its first virtual exhibit — on Jan. 9. The exhibit, which will be held at the Art Cube Philippines gallery, will run until Feb. 12. A virtual exhibit opening will be held on Jan. 9, 4:30 p.m., via FB Live on the PGW and ArtCubePhilippines Facebook pages. PGW is the official country branch of the International Watercolor Society (IWS) Globe Art Network (PGW is known internationally as IWS Philippines). PGW aims to build awareness, interest, and appreciation for watercolor art and to discover, hone, and support local talent. Nearly 80 artists will be participating in the exhibit.

Muni-Muni podcast tackles Hotdog

THE 7th episode of the Filipinas Heritage Library and the OPM Archive’s Muni-Muni Stories: A Podcast on Filipino Music will be released on Jan. 8, 6 p.m., on Spotify. Episode 7 is titled Hotog/Manila & Muling Kagat. Muling Kagat, the topic of this episode, is a one-of-a-kind tribute album to the 1970s band Hotdog. The album, produced by Paolo Garcia, includes a new version of the band’s hit song “Manila” along with unreleased song covers. It commemorates his late father’s work and gives this generation a fresh introduction to the Hotdog legacy. This episode discovers parallels between the “Manila” remake and the changing moods of the city Filipinos celebrate up-close and in other shores.

Golden Milestone at Shangri-La Mall

ARTIST Dominic Rubio celebrates his 50th birthday with an exhibit of paintings and sculptures called “Golden Milestone” which opened on Dec. 27 and is ongoing until Jan. 15 at the lobby of the Shangri-la Mall East Wing. Rubio depicts various Filipino archetypes in his works, marked by elongated necks and large heads. Rubio is not only celebrating his 50th birthday, but also his 25th year in the art scene as well as his 20th year with Galerie Joaquin. For this exhibit, Rubio introduced a new element in his paintings, using gold leaf paint to highlight details of characters and images, or as background to his familiar imagery. A deluxe edition of his brass sculptures based on his well-known themes of Old Manila, Plantation Life, and the Filipino-Chinese community are also featured. For inquiries, contact Galerie Joaquin at info@galeriejoaquin.com or 8723-9253 or Galerie Raphael at galerieraphael.shang@gmail.com or 8941-6194.

Art and the environment lectures this January

CRUCIAL environmental issues and climate emergencies and the vital role of arts in addressing these problems will be tackled in a pair of free online public talks spearheaded by key industry experts, hosted by the Museum of Contemporary Art and Design (MCAD) of the De La Salle-College of Saint Benilde. The two lectures, namely, “Humanizing Climate” scheduled on Jan. 12, and “Designing Solutions: A Conversation on Re-imagining the Environment” on Jan. 26, will both be conducted online at 3 p.m. For “Humanizing Climate,” Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA) Weather Division Weather Services Chief Dr. Esperanza Cayanan will expound on the importance of print and non-print materials to educate and update the people, while Climate Policy Analyst and Institute for Climate and Sustainable Cities (ICSC) Executive Director Red Constantino will elaborate how the institute’s award-winning and pioneering literary anthology on climate change, Agam, serves as a platform for advocacies. Oscar M. Lopez (OML) Center Associate Director Perpi Tiongson will discuss how the non-profit organization raises awareness on the environmental crisis to the most vulnerable sectors through translation projects that go beyond science into user-based communications and co-production. Manila Observatory Energy Collaboratory Director and Senior Fellow on Climate Change Attorney Tony La Vina will explain the important points to address climate justice. In “Designing Solutions: A Conversation on Re-imagining the Environment,” multimedia artist, curator, Black Artists in Asia Founder and Green Papaya Arts Projects Artistic Director Norberto Roldan will share his insights about his unrealized project Storm Signal. Pasig-based editor, writer and filmmaker Erwin Romulo will discuss the artist’s engagement with the environment as well as the creative ways of addressing the climate crisis, plus the developments of the Masungi Electrocardiograms Project to engage the participants into a re-thinking of art practice and production of new knowledge for a better future. The public programs are in line with MCAD’s current exhibition, “The Cone of Concern,” the first solo Philippine exhibit of South Korean artist Haegue Yang. The titular name of the exhibition refers to a meteorological graphing tool and initiates the timely conversations about climate change. For more information about the exhibit and public programs, visit www.mcadmanila.org or follow @MCADManila on leading social media platforms.

Mo_Space opens year with 2 exhibits

MO_SPACE opens 2021 with two exhibits: “Mute Earth,” featuring the works of Lec Cruz, Winner Jumalon, Jason Montinola, and Kaloy Sanchez at the Main Gallery; and Jed Escueta’s “Shoo Shine” at Gallery 2. Both exhibits open on Jan. 9 and will run until Feb. 7.

How PSEi member stocks performed — January 5, 2021

Here’s a quick glance at how PSEi stocks fared on Tuesday, January 5, 2021.

Peso weakens on faster inflation

THE PESO weakened against the greenback on Tuesday as inflation picked up in December.

The local unit closed at P48.065 a dollar yesterday, depreciating by 4.5 centavos from its P48.02 finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s session weaker at P48.04 per dollar. Its worst showing was at P48.07 while its intraday best was seen at P48.025 against the greenback.

Dollars traded dropped to $586 million on Tuesday from the $873.75 million seen on Monday.

The faster December inflation print caused the peso to weaken, a trader said in an email.

Headline inflation rose 3.5% in December, quicker than the 3.3% in November and the 2.5% print a year earlier, the Philippine Statistics Authority (PSA) reported on Tuesday.

Data showing a continued decline in the country’s manufacturing output also contributed to the peso’s weakness on Tuesday, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

Factory output gauged through the volume of production index shrank by 10.9% in November, a steeper decline than the -9.3% in October as well as the 7.6% slump a year ago, PSA data released separately on Tuesday showed. This is also the worst drop in four months or since the 13.6% contraction logged in July.

For today, the trader expects the peso to move within the P48 to P48.10 band while Mr. Ricafort gave a slimmer forecast range of P48.03 to P48.09 per dollar. — LWTN

PSEi drops on manufacturing data, profit taking

By Revin Mikhael D. Ochave, Reporter

SHARES ended in negative territory on Tuesday as investors booked their gains and as market sentiment was dampened by recent manufacturing data.

The benchmark Philippine Stock Exchange index (PSEi) fell 63.32 points or 0.88% to close at 7,134.18, while the broader all shares index declined 43.22 points or one percent to end at 4,273.94.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the market ended lower as investor sentiment was dampened by recent manufacturing data.

IHS Markit reported on Monday that the country’s Manufacturing Purchasing Managers’ Index (PMI) dropped to 49.2 in December, compared to 49.9 in the previous month.

The figure is now farther from the 50-neutral mark that differentiates expansion from contraction, and signified weaker factory activity.

For Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan, the market declined as investors remained cautious and booked their profits instead.

“The market ended lower as investors chose to lock in on profits to stay cautious amid the ongoing surge in coronavirus cases across the globe, and after the UK went into new lockdown situations in hopes to curb the spread of the new coronavirus disease 2019 (COVID-19) strain,” Mr. Pangan said in a mobile phone message.

British Prime Minister Boris Johnson on Monday placed England in a national lockdown as part of efforts to mitigate the spread of the new COVID-19 strain, despite the recent rollout of the vaccine created by Oxford University and AstraZeneca.

Meanwhile, the global tally of COVID-19 cases was at 85.68 million cases as of Jan. 5, according to data from the Johns Hopkins COVID-19 dashboard. The United States logged the highest case count at 20.82 million cases, followed by India at 10.36 million cases, and Brazil at 7.75 million cases.

Back home, most sectoral indices ended in red territory. Industrials was the sole gainer, rising 19.35 points or 0.2% to close at 9,485.59. Meanwhile, financials retreated by 27.14 points or 1.88% to 1,412.85; mining and oil dropped 128.42 points or 1.29% to 9,766.24; holding firms went down 72.78 points or 0.98% to 7,327.62; property declined 33.09 points or 0.88% to 3,705.28; and services shrank 10.74 points or by 0.7% to 1,523.55.

Decliners outnumbered advancers, 133 against 87, while 43 names ended unchanged.

Value turnover reached P11.34 billion with 30.76 billion issues switching hands, an improvement from the P10.03 billion with 21.55 billion issues in the previous trading session.

Net foreign selling reached P80.27 million, lower than P214.08 million logged on Monday.

“7,000 remains the nearest technical support area, while 7,300 may be considered the closest resistance level,” Mr. Pangan said.

FDA ordered to decide on vaccines in 20 days

THE PHILIPPINES’ Food and Drug Administration (FDA) risks being penalized if it fails to decide on product registration applications for coronavirus vaccines within 20 days, according to the agency against bureaucratic red tape.

This would ensure that vaccines and other medical supplies could be quickly rolled out, the Anti-Red Tape Authority (ARTA) said in a statement on Tuesday.

“The processing time for the certificate of product registration should not go beyond 20 days since this is a highly technical transaction,” ARTA Director-General Jeremiah B. Belgica said.

The agency said it had received reports that the initial process before a product could be registered at the FDA had been causing delays.

“Except for justifiable reasons provided in writing, any applications pending beyond the prescribed processing time is already punishable,” Mr. Belgica said.

A law that mandates the efficient delivery of government services and ease of doing business for companies requires agencies to process “highly technical” transactions in 20 days. Failure to do so could result in suspension, dismissal, imprisonment, or fines.

The FDA should approve vaccines and medical products that have been cleared by its counterparts in “other reputable countries,” ARTA said.

The FDA last week said that it would issue emergency use authorization for Pfizer, Inc.’s COVID-19 vaccine within a month.

Emergency authorization will shorten vaccine approval to 21 days from six months. The Pfizer vaccine has been approved by regulators in the United States, United Kingdom, Bahrain, Canada and Saudi Arabia.

VIRUS TALLY
The Department of Health (DoH) reported 937 coronavirus infections on Tuesday, bringing the total to 479,693.

The death toll rose by 58 to 9,321, while recoveries increased by 114 to 448,375, it said in a bulletin.

There were 21,997 active cases, 81.4% of which were mild, 8.5% did not show symptoms, 6.2% were critical, 3.3% were severe and 0.55% were moderate.

Davao City reported the highest number of new cases at 85, followed by Isabela at 54, Agusan del Sur at 49, Pampanga at 48, and Misamis Occidental at 43. DoH said five duplicates had been removed from the tally, while 14 recovered cases were reclassified as deaths. Nine laboratories failed to submit their data on Jan. 4.

More than 6.4 million people have been tested for coronavirus disease 2019 (COVID-19) in the Philippines as of Jan. 3, according to DoH’s tracker website.

The coronavirus has sickened about 86.1 million and killed 1.9 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

About 61.1 million people have recovered, it said.

Health authorities this week said they expect more coronavirus infections by mid-January as testing laboratories become fully operational after the holidays.

Some labs failed to submit data because these were closed during the holidays. Fewer people also got tested last month.

Average laboratory submissions during the holidays fell to about 22,000 from 36,000 daily.

Positive cases nationwide during the holidays dropped by 5%, while cases in Metro Manila declined by 4%.

DoH suspended the license of one laboratory for failing to submit coronavirus test results. Four other laboratories could face similar suspensions, DoH said.

Health authorities earlier urged local governments to work with the National Government in procuring and deploying coronavirus vaccines.

They said only the National Government could order vaccines that were given emergency use authority by the FDA.

But the National and local governments can pool their funds for vaccines, Health Undersecretary Maria Rosario S. Vergeire said on Monday.

The city of Manila has started a pre-registration for free vaccines, allotting P200 million, while Makati City has allocated P1 billion, according to news reports. San Juan City has set aside P50 million, while Pasig City Mayor Victor Ma. Regis N. Sotto said the city had allotted P300 million.

Only Pfizer, Inc. has applied for emergency use of its coronavirus vaccine in the country.

Vaccine czar Carlito G. Galvez, Jr. said at a Cabinet meeting last month the government was in talks with vaccine makers for 80 million doses. — Jenina P. Ibañez and Vann Marlo M. Villegas

Senators seek probe of Chinese workers’ illegal vaccination

SENATORS on Tuesday urged the government to investigate the inoculation of 100,000 Chinese workers at offshore gaming companies in the Philippines using a smuggled coronavirus vaccine from China.

Authorities should prosecute those behind the smuggling, distribution and sale of unauthorized vaccines in the country, they said.

“The government should act immediately to identify and prosecute the source of these smuggled, unverified and therefore dangerous vaccines, which threaten the effectivity of our health response to COVID-19,” Senator Risa N. Hontiveros-Baraquel said in a statement.

She said the Health department, Food and Drug Administration (FDA) and Health Technology Assessment Council should be stricter in enforcing the vaccine approval process and ensure that violators are held liable.

This comes before a Senate committee of the whole hearing on the COVID-19 immunization plan, set for Jan. 11, which Senator Franklin M. Drilon said should also cover the inoculation of the Chinese workers.

“The Senate should continue with the hearing, especially in the light of the revelation that 100,000 POGO workers were inoculated in the country. That is illegal,” he said in a statement.

“In aid of legislation, the Senate must get information from other sources on how to strengthen the FDA and the Bureau of Customs to prevent similar episodes in the future,” he added.

This followed the vaccination of presidential security guards (PSG) using an unregistered vaccine, which the House of Representatives also wants to probe.

President Rodrigo R. Duterte on Monday night urged lawmakers to stay away from the issue, adding that soldiers were not obliged to testify at the hearings.

“Do not threaten them with prosecution and things like that,” he said. “They have every right to live and to invoke self-preservation.”

Mr. Drilon said it is within Mr. Duterte’s executive privilege to prevent his guards from attending the hearings, but the chamber could still tap other sources to get the information.

“There is no preventing Congress from eliciting information in aid of legislation from other resource persons,” he said.

Senator Richard J. Gordon said Mr. Duterte should “respect” the separation of powers between the Executive and Legislative branches.

“I stand by the independence of Congress,” he told an online news briefing. “No one can overwhelm the other and put it into submission, in the same way that we can’t bully the Executive and threaten them with investigations.”

A bloc of congressmen filed a resolution seeking to investigate the smuggling of the vaccines from China for the presidential guards.

The opposition lawmakers said the Presidential Security Group (PSG) had violated several laws and their oath of office when they agreed to be inoculated with the smuggled drugs. The PSG could have also violated the law against corruption.

The National Bureau of Investigation (NBI) said it would continue its probe of the smuggled vaccines.

“The NBI investigation will proceed as planned,” Justice Secretary Menardo I. Guevarra told reporters in a Viber message.

“Its mission is to investigate the alleged proliferation of unregistered anti-COVID-19 vaccines and their unauthorized administration in the so-called black market,” he added.

Mr. Guevarra said the agency has several sources of information other than the PSG.

NBI Deputy Director and spokesman Ferdinand M. Lavin separately told CNN Philippines they have asked the FDA if it had approved some vaccines for local use. They also expect to reach out to the Bureau of Customs on the smuggling.

The NBI will also reach out to PSG commander Brigadier General Jesus Durante III through the Armed Forces. “If he declines to cooperate, the investigation will continue and we will build up the case on independent evidence,” he said in mixed English and Filipino.

Mr. Lavin said they would talk to civic leader Teresita Ang-See, who divulged the vaccination of the Chinese POGO workers. — Charmaine A. Tadalan, Vann Marlo M. Villegas, Kyle Aristophere T. Atienza and Gillian M. Cortez

Nationwide round-up (01/05/21)

Bills on suspension of PhilHealth contribution increase filed in both Senate, House

PROPOSED laws that will defer the scheduled increase in contributions to the Philippine Health Insurance Corp. (PhilHealth) have been filed in both chambers of Congress. At the House of Representatives, Speaker Lord Allan Q. Velasco said on Tuesday they are ready to review Republic Act No. 11223, or the Universal Health Care (UHC) Act, with particular focus on the provision mandating an increase in premium contributions every year, starting 2021 until it reaches the 5% limit in 2025. “We urge the PhilHealth and the Department of Health to work closely with the legislature to ensure that our citizens and hardworking Filipinos will not further be exposed to this unnecessary burden while still grappling with the pandemic,” Mr. Velasco said in a statement. Marikina City Rep. Stella Luz A. Quimbo, meanwhile, filed House Bill No. 8300, which seeks to grant the President the power to suspend the scheduled increases in member contributions to the state insurer during national emergencies such as the coronavirus pandemic by amending Section 10 of the UHC law. President Rodrigo R. Duterte on Monday called for a halt on the implementation of the increase. “The UHC Act could not have foreseen the COVID-19 (coronavirus disease 2019) pandemic that has battered our health care sector and our people’s livelihoods in the past year,” the bill’s explanatory note stated. Also on Tuesday, more than 50 House members across party lines filed a resolution to immediately suspend the hike in premium contributions this year. In the resolution, lawmakers said the massive displacement of workers and harsh economic conditions brought about by the pandemic should be considered as a “fortuitous event basis” for the suspension of premium rate contribution by the state insurer. At the Senate, a bill numbered 1968 seeks to amend the UHC law to automatically suspend the annual rate increase should there be an epidemic among other public health emergencies. The bill also provides that the increase will be implemented in the year after the health emergency has ended. — Kyle Aristophere T. Atienza and Charmaine A. Tadalan

Law granting President to speed up permit processing during national emergency signed

THE MEASURE authorizing the country’s president to expedite permit processing amid the coronavirus pandemic has been signed into law, a Senate leader said. The new law goes into the books as Republic Act No. 11517, Senate President Vicente C. Sotto III told reporters over phone message Monday evening. It will grant President Rodrigo R. Duterte powers to speed up processing and issuance of national and local permits, licenses, and certifications in times of national emergency. Mr. Duterte placed the country under a state of calamity for six months, starting March 16 due to the pandemic. It was extended for one year until Sept. 12, 2021. “We’re still effectively in an emergency, and our government processes should really be streamlined, so our people can receive essential services in a timely manner,” Senator Juan Miguel F. Zubiri, key sponsor of the bill, said separately in a statement on Tuesday. The bill will also allow the President to suspend or waive requirements in securing documents at the national and local level. Mr. Zubiri noted it serves as a “partner law” of the Ease of Doing Business Law, or RA 11032, which already shortened the number of days in processing documents to three, seven, or 20 working days. — Charmaine A. Tadalan

SSS president says law needed to defer scheduled hike in members’ monthly contributions

THE HEAD of state-run Social Security System (SSS) on Tuesday said a new law is needed to defer the scheduled increase in member contribution rates starting this month. In a briefing on Tuesday, SSS President Aurora C. Ignacio explained that while they understand the plight of members, mainly workers in the private sector and individual contributors, during the coronavirus disease 2019 (COVID-19) crisis, the Social Security Act of 2018 mandates the hikes scheduled in 2019, 2021, 2023, and 2025. “If that is legislated or mandated to us by the Palace and the President, we will follow),” she said in Filipino. In a televised talk Monday night, President Rodrigo R. Duterte ordered the suspension of the SSS contribution hike, adding the government will find funds to help address the income gap for SSS. — Gillian M. Cortez

Solon warns of vaccine black market without clear gov’t plan; FDA says ‘special permit’ available

ALBAY Rep. Jose Maria Clemente S. Salceda on Tuesday nudged the national government to commit to a timeline and clear strategy for the procurement and distribution of coronavirus vaccines to avoid confusion among the general public as reports of “fake vaccines in the black market begin to emerge.” Mr. Salceda, who chairs the House ways and means committee, said a “clearly articulated” national strategy will prevent a setback in the government’s mass vaccination efforts and counter a possible surge in fake or unregistered vaccines. “The strategy will help us identify when and what kinds of storage to procure, what needs can the private sector meet, among other basic components of the vaccination process,” he said in a statement. “We need clarity. If we continue to hear reports that everyone is getting vaccinated except the Filipino public, we will see black market demand surge. That will erode trust in the overall vaccine strategy, and could undermine our efforts to fight COVID,” he said. Meanwhile, an emergency approval may not be needed to administer coronavirus disease 2019 (COVID-19) vaccines if it will be given to a small sample of people, according to Food and Drug Administration (FDA) Director General Rolando Enrique C. Domingo. In a briefing on Monday, Mr. Domingo said a “Compassionate Special Permit” can be issued to the hospitals that will administer the experimental vaccines. “If it’s going to be a smaller group, for example po the PSG (Presidential Security Group)… then we can give a compassionate special permit for this because the group is small and then a hospital can take care of it and a doctor can administer them safely,” he said in mixed Filipino and English. The statement comes after the PSG admitted its personnel received vaccines in line with their mandate to protect the President. The local FDA has yet to approve any COVID-19 vaccine for use in the country. — Kyle Aristophere T. Atienza and Gillian M. Cortez

Duterte signs laws on medical student scholarship, alternative learning, and organic agriculture

MALACAÑANG on Tuesday released three laws, signed by President Rodrigo R. Duterte on Dec. 23, providing scholarship to qualified medical students, strengthening the Alternative Learning System, and amending the Organic Agriculture Act of 2010. The Doktor Para sa Bayan Act, or Republic Act (RA) 11509, establishes a medical scholarship and return service program to deserving students. “This shall ensure the availability of doctors who will provide quality basic, promotive, preventive, and curative health care services in every municipality in the country,” the law states. RA 11510, or the Alternative Learning System (ALS) Act, will “provide adequate, timely, and quality attention and support to the basic learning needs of out-of-school children in special cases and adults including indigenous peoples.” The Department of Education (DepEd)  is mandated to work with local governments for the implementation of the ALS programs that will be in line with the K-12 Basic Education Curriculum. RA 1151, meanwhile, paves the way for the establishment of a new office under that will complement and boost the National Organic Agricultural Board. Under the new law, the Department of Agriculture “will be strengthened and empowered in terms of establishing a functional office, to be known as the National Organic Agriculture Program-National Program Coordinating Office (NOAP-NPCO).” The Organic Agriculture Act of 2009 set up the board that serves as a policy-making body. RA 1151 also institutionalizes the Participatory Guarantee System (PGS), which certifies small farmers and fisherfolk as producers of organic agriculture products for local trading. — Gillian M. Cortez

SWS Q4 survey: 42% of Filipinos optimistic about economic recovery this year

ABOUT four out of every 10 Filipinos are optimistic that the Philippine economy will improve in the next 12 months, a poll by the Social Weather Stations (SWS) showed. In a statement on Tuesday, SWS said 42% of Filipinos believe that the economy will improve, 28% say it will stay the same, while 18% say it will worsen. “The resulting Net Economic Optimism score is +24, classified by SWS as high,” it said. The net economic optimism in November was a recovery from the -9 score in July last year and -5 in September. SWS said net economic optimism increased in all areas with Mindanao rising by 51 points, Visayas by 28 points, Metro Manila by 24 points and the rest of Luzon at 19 points. Their net scores in July dipped to a negative range. Net economic optimism in Mindanao and Metro Manila were within the “very high” range at +36 and +31, high in the rest of Luzon at +24, and mediocre in Visayas at +4. The Fourth Quarter (Q4) 2020 survey was conducted Nov. 21 to 25 through face-to-face interviews among 1,500 individuals nationwide with a ±2.5% sampling error margins for national percentages. — Vann Marlo M. Villegas

Regional Updates (01/05/21)

Quezon City calls on taxpayers, businesses to use e-service platform

THE QUEZON City government urged taxpayers and business owners to tap the available electronic service systems for convenience and minimize health risks amid the coronavirus pandemic. “We urge our citizens to use our QC E-services to transact with the city. This way, they are saved from the hassle of physically going to the city hall and from the possible risk of being exposed to the coronavirus disease,” Mayor Maria Josefina “Joy” G. Belmonte said in a statement. The system may be used for real estate taxes and business permit application and renewal. “We have recently created an Online Payment Group dedicated to respond to all emails sent to us. Be it inquiries or proof of payment,” City Treasurer Edgar T. Villanueva said.

Tacloban’s new transport terminal 98% done

TACLOBAN CIO

TACLOBAN City’s new transport terminal building is 98% complete and will soon be turned over by the contractor to the local government. In a statement from the city information office on Tuesday, Terminal Manager Noli Naval said the contractor has signified intent for a partial turnover “to ensure the proper safekeeping of all equipment and devices installed in the building.” The three-level building has slots for 11 public buses on the ground level and up to 80 jeepneys and vans on the second and third floors. The terminal has a water system and equipped with a fire hydrant at each level. It also has a power generator set, public toilets, and a ramp for persons with disability. Mr. Naval said they are preparing for the second phase of development, which will include renovation of the existing passenger waiting area and installation of a skywalk connecting the terminal to a nearby shopping mall. The government’s transport modernization program has also been rolled out in the city, which serves as the regional center of Eastern Visayas.

Japan releases second tranche of standby loan to Philippines

THE Japanese government, through its overseas development arm the Japan International Cooperation Agency (JICA), has released 10 billion yen (P4.7 billion) to the Philippines from its standby loan facility, with the proceeds intended to support recovery efforts for communities hit by recent typhoons.

In a statement Tuesday, JICA said the disbursement was the second tranche of the post-disaster standby loan 2 agreement with the Philippines. The previous tranche was also worth 10 billion yen, in support of the government’s pandemic response.

The 50-billion-yen standby loan agreement was signed in September.

JICA said the funds can be used on rehabilitation efforts for communities struck by the series of typhoons late last year.

“Through the JICA post-disaster assistance, we hope that vulnerable sectors affected will find relief and support to recover their livelihood and income through the spirit of ‘bayanihan’ in these difficult times,” JICA Philippines Chief Representative Eigo Azukizawa was quoted as saying.

The standby loan is designed as a rapidly-disbursing fund to accelerate the government response to calamities.

The loan can be tapped in tranches within three years, with the loan agreement extendable for another three years.

It charges an interest rate of 0.01%, maturing over 40 years, inclusive of a 10-year grace period.

“As partners for inclusive development, JICA is supporting the Philippines with available financial resources to mitigate the impact of natural disasters and health crises. We’re making it clear that we’re in this together and that JICA will support development partners who need our assistance,” Mr. Azukizawa said.

Aside from the standby loan, Manila in July 2020 obtained a 50-billion-yen loan from Tokyo for its pandemic response.

Japan remains the country’s top source of foreign aid with current grants and loans worth $10.082 billion as of June 2020.

JICA is the biggest bilateral aid agency in the world with total foreign aid of $14.08 billion in 2018. — Beatrice M. Laforga

DBM starts releasing cash allocation notices for first quarter

THE Department of Budget and Management (DBM) said it has started releasing notices of cash allocation (NCAs) covering the expenses of government agencies for the first quarter.

According to documents posted on the DBM website, the department indicated the release of the NCAs in accordance with the P4.5-trillion budget for 2021, which was signed on Dec. 28.

The NCAs authorize agencies to use the funds allocated to them for programs and projects.

Budget Secretary Wendel E. Avisado said the release of NCAs for the quarter was authorized by the 2021 General Appropriations Act (GAA), which served as the General Allotment Release Order (GARO).

“The GAA is the GARO itself so we do not need to issue any SARO (special allotment release order) and just issue the NCA on a quarterly basis, but the programming of the release of funds is done by the Bureau of the Treasury on a monthly basis,” Mr. Avisado said via Viber Tuesday.

Based on the Budget documents, the NCAs released for the first quarter as of Tuesday exceeded P280 billion.

“(Government agencies) are guided by their targets and schedule of implementation. It’s really their call since the funds are already made available to them,” he said, when asked if the NCA release of funds will expedite spending.

Mr. Avisado said earlier that most government projects will continue to be implemented as programmed despite the veto orders from President Rodrio R. Duterte covering 13 special provisions, with the implementation of 45 general provisions subject to conditions.

He said the DBM is working with various government agencies to ensure that budget allotments will be released on time.

This year’s national budget forms part of the recovery program for the economy after the pandemic. — Beatrice M. Laforga

Free public Wi-Fi spots rose to 7,556 — DICT

THE Department of Information and Communications Technology (DICT) said the number of free public Wi-Fi sites rose to 7,556 at the end of 2020, after the addition of 4,305 new hot spots last year.

“With these additional 4,305 sites, the DICT has in one year more than doubled the total number of sites deployed throughout the entire country, as compared to its deployment in 2016-2019,” the department said in a statement late Monday.

It said it utilized about 93.89% of the budget for the Free Wi-Fi for All Program, first released in 2019, the validity of which was extended by law to the end of 2020.

Information and Communications Technology Secretary Gregorio B. Honasan II said the Free Wi-Fi for All Program is “instrumental to fulfilling the marching orders given by the President to DICT, upon our assumption last July 2019, which includes connecting every Filipino to each other, to their government, and to the world.”

The department has set a target for 5,100 new hot spots this year, including government hospitals, national and local government offices, public libraries, public parks, plazas, public schools, state universities and colleges, TESDA institutions, and transport terminals.

Free Wi-Fi is one of the DICT’s flagship programs. — Arjay L. Balinbin

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