TORONTO — Chesson Hadley used a superb putting display to charge up the third-round leaderboard at the Charles Schwab Challenge in Forth Worth, Texas, on Saturday before overnight leader Harold Varner III even teed off.
Hadley opened his round with four consecutive birdies and added another at the eighth and 11th holes en route to a bogey-free, six-under par 64 at Colonial Country Club that left him three shots back of Varner.
American Hadley, who has not won on the PGA Tour since his maiden triumph in 2014, showed his intentions early on the spectator-free course as his approach shot from a greenside bunker settled two feet from the cup.
After making birdie putts of 16 feet and seven feet at the next two holes Hadley then converted a 43-yard putt at the par-three fourth to reach four under on the day after only four holes.
Hadley, who missed the cut in his previous two starts before the PGA Tour halted action due to the COVID-19 pandemic, was a model of precision as he hit 12 of 14 fairways and 15 of 18 greens in regulation and did not miss any putts within 10 feet.
Varner, who is one shot clear of Jordan Spieth and Bryson DeChambeau, is among the late starters.
World number one Rory McIlroy, who is two shots back of Varner, is scheduled to tee off at 1:50 p.m. ET (1750 GMT). — Reuters
ALL IS SET for the staging of the inaugural FIBA Esports Open this week, which will feature various national teams, including that from the Philippines.
A series of exhibition e-basketball games, the FIBA Esports Open 2020 will take place from June 19 to 21.
Competing teams include Argentina, Australia, Austria, Brazil, Cyprus, Indonesia, Italy, Latvia, Lebanon, Lithuania, New Zealand, the Philippines, Russia, Saudi Arabia, Spain, Switzerland and Ukraine.
For the tournament each team will consist of seven players, five on the court and two reserves. Games will be played remotely on NBA 2K using the Pro-AM mode and allowing full customization of player avatars, uniforms and arena designs.
At the weekend, the Samahang Basketbol ng Pilipinas (SBP) named the squad that will be competing in the FIBA Esports Open 2020.
Culled from the growing esports scene in the country, the team is composed of Aljon “Shintarou” Gruzin (point guard), Rial “Rial” Polog Jr. (shooting guard), Custer “Aguila” Galas (small forward), Rocky “Rak” Brana (center/power forward), Philippe “Izzo” Alcaraz IV (center), Clark “Clark” Banzon (power forward) and Al “Alt” Timajo (center/power forward).
The entire FIBA Esports Open 2020 series will be produced from the brand-new FIBA Esports Studio located in Riga, Latvia, with a daily four-hour show featuring up to six games.
Each game will be live-streamed on FIBA’s Facebook, Twitch and YouTube channels with live commentary in English.
Matches can also be seen over the Samahang Basketbol ng Pilipinas (SBP) Facebook page.
“FIBA is extremely proud and excited to start its esports journey with the FIBA Esports Open 2020, a pilot project of exhibition games between national teams in collaboration with NBA 2K,” said Frank Leenders, FIBA Media and Marketing Services Director General in a statement.
“The esports initiative was identified by the FIBA Central Board as important and consistent with the strategic objective to enlarge the FIBA Family. In these challenging times, we feel encouraged by the enthusiasm of some of our National Federations who are already active in this space and have been our charter partners during the last few months,” he added.
The inaugural FIBA esports tournament comes as the basketball community continues to await the return of regular play after being halted by the coronavirus disease 2019 (COVID-19) pandemic in March.
THE LOCAL basketball community is mourning the passing of respected and pioneering coach Nicanor “Nic” Jorge, who died in his sleep on Saturday. He was 78.
Mr. Jorge was considered a pillar in Philippine basketball, particularly in the push for grassroots development for the sport that saw him founding the Basketball Efficiency and Scientific Training Center (BEST Center) in the late 1970s.
The BEST Center since its founding has become the go-to basketball clinic for many who wanted to develop their game, some of whom went on to become stars in the Philippine Basketball Association (PBA) like Jerry Codiñera, Benjie Paras, Jun Limpot, Chris Tiu and Kiefer Ravena.
A product of the University of the Philippines, Mr. Jorge coached the Fighting Maroons when he was just 21 years old.
He also was the coach of the Philippine team that competed in the 1978 FIBA World Cup held here in Manila.
Mr. Jorge paraded his coaching skills as well in the PBA, coaching the Galleon Shippers and Manhattan Shirtmakers in the early 1980s.
He was a steady presence in the local basketball scene in the last 40 years.
Apart from overseeing the operations of the BEST Center, Mr. Jorge was secretary-general of the Basketball Association of the Philippines and a founding board member of the Samahang Basketbol ng Pilipinas Inc. (SBP).
Mr. Jorge was also a strong supporter of women’s basketball.
TRIBUTES POUR IN
With the kind of impact he had on local basketball, tributes to Mr. Jorge poured in once news of his passing came out.
Tributes came from organizations he had been part of, former basketball students and parents of those who took part in the BEST Center.
UP, SBP and the PBA celebrated his life and mourned the loss of a “valued” family member.
Former national team coach Chot Reyes highlighted how a true advocate of grassroots Mr. Jorge was.
“So many have spoken about grassroots development. He went out and did it. #RIP Coach Nic,” he wrote on Twitter.
“My story is unique because of this man. Coach Jorge, thank you for believing in me ever since I was young- ever since I started basketball. BEST Center Sports Inc. was my very first introduction to Philippine Basketball, where I developed all my fundamental basketball skills and understanding of the game,” Filipino-American female player Ella Fajardo, for her part, wrote on her Facebook page.
“Your immeasurable [sic] amounts of love and support towards my family will never be forgotten, for because of you, my sisters and I wouldn’t be the student athletes that we are today. Rest in Peace Coach, your legacy will be continued through us athletes,” added Ms. Fajardo, who is making waves in the basketball scene in the United States and represented the Philippines in the FIBA 3×3 Asia Cup last year.
For Michael Papa, whose son was of the many products of the BEST Center, Mr. Jorge’s contribution to basketball is immeasurable and thanked the coach for providing a platform for aspiring players to develop themselves not only on the court but also outside of it.
“Thank you Coach Nick Jorge… I [dreamt] of being there at the MILO BEST gym. But that dream I gave to my son Nathan Josh Papa. Rest in Peace,” Mr. Papa wrote on Facebook.
Mr. Jorge is survived by wife Marilyn, children Nick, Veronica and Victor, and Monica and grandsons Niccolo and Enzo. — Michael Angelo S. Murillo
First things first: Opinions can and will vary over time. People are entitled — and, given the introduction of significant information, actually enjoined — to alter their thought processes and beliefs, even value systems. Outside of fundamental mores and ideals, anything is fair game. In life, the only thing constant is change. Which is to say Kyrie Irving has every right to oppose the move of the National Basketball Association to resume the 2019-20 campaign under extraordinary circumstances shortly after he got behind it.
Why Irving did a 180-degree turn is relevant to the discussion, to be sure. When the players association, of which he is a vice-president, held a conference call to discuss the issues a week and a half ago, he was, according to ESPN, an “active participant,” but one who confined queries to “mundane” matters. And the final tally, a unanimous 28-0 vote acceding to the decision of the Board of Governors to restart the season, certainly reflected his position. For some reason, however, he then went the other way — even going so far as to lead calls to sit out the proceedings. “I don’t support going to Orlando,” The Athletic quoted him as saying in a subsequent virtual meeting among close to a hundred players. “I’m not with the systematic racism and the bull—.”
Granted, Irving has subjected himself to valid criticism for his seeming flip-flop. At the time of his yes vote, civil unrest was already hogging headlines half a month removed from George Floyd’s utterly avoidable death. Why he didn’t speak up then, only he can answer. It also doesn’t help his cause that he’s convalescing from surgery to his right shoulder, and therefore cannot suit up at the ESPN Wide World of Sports Complex in Walt Disney World even if he were so predisposed. Then again, there can be no discounting the power of his message, and why it resonates to many other players.
In the short term, Irving’s impassioned views should spur discussions and move issues forward. All sides, including his, need to be heard, and the hope is that the ultimate outcome will have been arrived at following healthy debate among open-minded quarters. In this regard, he is serving his role extremely well, prompting relevant, if awkward, second-guessing and subjecting plans to all eventualities. And in compelling the crediting of contrarian considerations, collaboration is counted as critical to creating consensus.
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.
Hungry and hopeless: slum life a struggle in the lengthiest of lockdowns. Mary Jane Basbas, 21, and Jomar Santos, 23, attempt to feed their child in their shanty home, amid the coronavirus disease (COVID-19) lockdown, in Caloocan City, Metro Manila. — REUTERS
THE number of Filipinos going hungry has doubled in the past six months and more than 90% of its residents are experiencing stress as the country battles the coronavirus pandemic, according to a survey released Friday.
About 4.2 million people can’t afford to eat, soaring from December, while 91% of Filipinos aged 15 or older are feeling anxious, according to a Social Weather Stations poll conducted May 4 to 10.
Anti-virus lockdown restrictions since March have devastated jobs and hurt incomes in the Philippines, with the jobless rate surging to a record 17.7% in April. The country’s economy will contract this year, the World Bank forecast. While some businesses have been allowed to restart, many curbs remain in place particularly in the greater Manila region, which is the main driver of the economy.
President Rodrigo Duterte is set to decide on Monday whether more restrictions will be loosened. Transportation is still very limited in Manila, as the government seeks to boost activity while minimizing the risk of infections spreading. Total coronavirus cases, approaching 25,000, have risen faster this month than in May.
Interior Secretary Eduardo Año, vice-chair of the government’s virus response task force, said it may be necessary to maintain Manila’s general community quarantine status, CNN Philippines reported Friday. Another senior member of the task force, Defense Secretary Delfin Lorenzana, lent his support to a modified form of quarantine. He said in a virtual briefing that the level of quarantine restrictions will depend on the situation in the coming days, according to the report.
SWS surveyed 4,010 people using mobile phones and computer-assisted telephone interviews. The poll is non-commissioned. — Bloomberg
China has pledged to prioritize the Philippines once it finds a vaccine for the novel coronavirus, Malacanang said in a statement on Friday, citing a phone call between the nations’ two leaders.
China has also promised to provide critical medical supplies and equipment to its neighbor in the battle against the global pandemic, while assuring the free flow of goods and services between them, according to the statement.
Chinese President Xi Jinping and President Rodrigo R. Duterte talked on the phone for 36 minutes on Thursday evening, during which they both vowed to “uphold peace, stability, prosperity and principles of international law, including the rule of law.”
Mr. Duterte has sought closer trade and investment ties with China since he became president in 2016, unlike his predecessor who sued China before an international court and won.
The United Nations arbitral court in the Hague favored the Philippines in that lawsuit, voiding China’s claim to more than 80% of the South China Sea based on a nine-dash line.
Mr. Duterte had vowed to pursue an independent foreign policy, announcing a pivot to China away from the US.
The tough-talking leader in February officially notified the US that he was ending a two-decade-old military pact with the US on the deployment of troops for war games.
Earlier this week, Mr. Duterte suspended the termination of the visiting forces agreement “in light of political and other developments in the region,” according to the Department of Foreign Affairs (DFA).
The suspension of the 21-year-old visiting forces agreement (VFA) is effective for half a year and may be extended by six more months, DFA told the US Embassy in a letter dated June 1.
Ending the VFA complicates Washington’s efforts to maintain an Asia-Pacific troop presence amid friction over the presence of US personnel in Japan and South Korea and security concerns about China and North Korea. — Gillian M. Cortez
Perfecto R. Yasay, Jr., the former corporate regulator who helped oust President Joseph Estrada in 2001, has died. He was 73.
Mr. Yasay, who was battling cancer, died of pneumonia, the United Church of Christ in the Philippines said in a Facebook post, citing Mr. Yasay’s wife Cecile Joaquin. His death was not coronavirus-related, it said.
Mr. Yasay was chairman of the Securities and Exchange Commission when he testified against Mr. Estrada in his impeachment trial for corruption. The trial was aborted after the former leader was ousted in a popular street uprising known as the EDSA People Power II.
Nine years later, Mr. Yasay apologized to Mr. Estrada for “hurting and offending him” but said he was not retracting his testimony.
Mr. Yasay ran for vice president in 2010 and lost.
The former corporate regulator in 2016 led President Rodrigo R. Duterte’s pivot to China away from the US as Foreign Affairs secretary. But lawmakers rejected his appointment a year later due to issues about his citizenship.
Mr. Yasay was married to Cecile Joaquin and they had three children. — Norman P. Aquino and Charmaine A. Tadalan
Remittance inflows declined in March, as the coronavirus outbreak accelerated and tensions among global oil producers escalated.
Cash remittances of overseas Filipino workers (OFWs) that were coursed through banks dropped by 4.7% to $2.397 billion in March from the $2.514 billion a year ago, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The 4.7% decrease in cash remittances is the first contraction since the -2.9% in June 2019 and the highest drop since the -9.8% in March 2018, when inflation skyrocketed and the peso reached the P52 level versus the dollar.
“The countries that registered the declines in cash remittances in March were mostly from oil producing countries (Saudi Arabia, United Arab Emirates and Kuwait) where demand for workers was affected by depressed oil prices in the world market,” the BSP said Thursday night.
For the first quarter of 2020, inflows grew by 1.4% to $7.403 billion from the $7.299 billion in the comparable year-ago period.
The central bank on Thursday released its latest projection which estimates cash remittances to decline by 5% this year, a reversal from the 2% growth forecast in May and the baseline 3% estimate back in November. The World Bank estimates a 20% drop in global remittances as the pandemic continues.
Personal remittances slumped 5.2% to $2.652 billion in February from the $2.557 billion during the same month in 2019. This is the first decline in personal remittances since June 2019 and the 9.9% contraction in March 2018.
According to the BSP, personal remittances from land-based workers with work contracts of one year or more slipped by 6.7% to $2.014 billion in March coming from the $2.157 billion recorded last year. On the other hand, remittances from sea-based workers and land-based workers with work contracts of less than one year rose by 2.7% to $591 million from $575 million in March 2019.
Year-to-date, personal remittances rose by 1.5% to $8.218 billion in March from the $8.098 billion last year.
Economists said the virus took its toll on remittances in March, adding to tensions in the oil market.
“The decline in March remittance inflows can be attributed to the oil price collapse due to the disagreement between Russia and Saudi Arabia. Biggest hit by this oil price shock are Filipino workers from the Middle East that comprise more than 50% of total overseas workers,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.
In March, Saudi Arabia slashed oil prices by nearly 10% in retaliation against Russia for not joining the large production cuts made by the Organization of the Petroleum Exporting Countries in response to waning demand.
Mr. Asuncion said the sea-based luxury travel industry as well as the land-based hotel and accommodation sector were already feeling the pain in March, as the coronavirus outbreak spread rapidly around the world.
“You have countries like Hong Kong, Macau, and the Middle East as major sources of these inflows from this said sector,” he said.
The drop in remittances will likely bottom out in the next few months as countries imposed restrictions to combat the spread of the virus.
“In view of the recent repatriation of some OFWs, as displaced by COVID-19 pandemic, OFW remittances could still continue to decline by single-digit levels in the coming months of 2020, with the bigger declines that could be seen at the height of the lockdowns from April-May,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail.
Despite this, Mr. Ricafort noted OFWs who managed to save money still have the ability to continue to send to their families at this difficult time.
“Another offsetting factor is the fact that some OFWs in many host countries belong to essential industries especially medical professionals who would still continue to work and send remittances during the lockdown periods,” Mr. Ricafort added.
More than 36,000 OFWs have been repatriated since the outbreak as of June 8, according to data from the Department of Foreign Affairs.
The coming months will likely remain bleak for remittance inflows as uncertainties over COVID-19 continue, according to John Paolo R. Rivera, an economist at the Asian Institute of Management.
“Unless all economies have been bootstrapped and the pandemic has been contained, then we cannot expect a significant improvement in remittance inflow,” Mr. Rivera said in an e-mail.
“That is why there is a need for a global collective effort to contain the pandemic if economies will continue to rely on the phenomenon of temporary labor migration (we rely on remittances, they rely on the services of our manpower),” he added.
Cash remittances is a vital part of the economy as it boosts consumption which forms part of about 70% of the country’s gross domestic product.
Manila Electric Company (MERALCO) announced today another downward adjustment of power rates, as the overall rate for a typical household decreased by P0.0216 per kWh, from last month’s P8.7468 per kWh to P8.7252 per kWh this June. This is equivalent to a reduction of around P4 in the total bill of residential customers consuming 200 kWh.
With three straight months of generation rate reduction, and a total rate decrease of more than one peso per kWh since the start of the year, this month’s total rate is also significantly lower than that of June 2019, which was P10.0918 per kWh. This month’s total rate is also the lowest since February 2018.
Lower Generation Charge as MERALCO Claims Force Majeure
From P4.3848 per kWh last May, the generation charge decreased by P0.0435 per kWh to P4.3413 per kWh this June.
Because of the very significant reduction in power demand in its service area during the Enhanced Community Quarantine (ECQ) and Modified ECQ period, MERALCO invoked the Force Majeure provision in its Power Supply Agreements (PSAs) for the duration of the lockdown, reducing fixed charges for generation capacity that would have been charged by suppliers. This June, the Force Majeure claim totaled P614 million, equivalent to customer savings of P0.2208 per kWh, representing reduction in fixed costs from its baseload supply contracts and avoided charges from the temporary suspension of the mid-merit supply contracts recently approved by the Energy Regulatory Commission (ERC). Without the FM claims, generation charge and the total rate would have increased by 18-centavos and 24-centavos, respectively, from last month’s rate. For the past 3 months, the savings due to Force Majeure claims totaled around P1.6 billion.
PSA charges decreased by P0.0613 per kWh mainly due to MERALCO’s Force Majeure claim. Cost of power from Independent Power Producers (IPPs) also decreased by P0.2334 per kWh due to higher average plant dispatch. PSAs and IPPs accounted for 50.4% and 47.1% of MERALCO’s total supply, respectively.
Meanwhile, charges from the Wholesale Electricity Spot Market (WESM) increased by P0.3132 per kWh due to tighter supply conditions in the Luzon grid mainly due to higher incidents of plant outages and slight increase in demand. The share of WESM to MERALCO’s supply needs was only at 2.5%.
Movements in Other Charges
Other pass-through charges registered an increase of P0.0219 per kWh. This was mainly due to the resumption of the P0.0495 per kWh Feed-In-Tariff Allowance (FIT-All). The ERC suspended the collection of FIT-All for April and May billing months in consideration of the ECQ. Meanwhile, ERC suspended the collection of Universal Charge-Environmental Charge amounting to P0.0025 per kWh beginning this June, until further notice.
MERALCO’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 59 months, after these registered reductions in July 2015. MERALCO reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.
MERALCO keeps its doors open for customers during General Community Quarantine (GCQ)
Customers may visit their nearest Meralco Business Center, which will continue to open its doors during the ongoing GCQ, and accept service applications, payments, and other transactions.
Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, Social Distancing and Temperature Check. Frontliners are available and ready, but strictly follow Social Distancing guidelines. Visitors can rest assured that these frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner.
But, for maximum safety and convenience, Meralco still encourages customers to use Meralco Online to transact from the safety of their homes. Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App via https://onelink.to/meralcomobile, Meralco Online via www.Meralco.com.ph, and the Meralco authorized payment channels at bit.ly/MeralcoPaymentPartners.
For more information and concerns, customers may visit MERALCO’s website at www.MERALCO.com.ph, its social media accounts, twitter @MERALCO and facebook at www.facebook.com/MERALCO or may also call the MERALCO Hotline at 16211.
Foreign direct investment inflows dropped in February, as the coronavirus began spreading around the world. — REUTERS
By Luz Wendy T. Noble,Reporter
FOREIGN DIRECT investment (FDI) inflows slumped by a third in February, as the uncertainty over the then-emerging coronavirus outbreak started spooking investors.
Data from the Bangko Sentral ng Pilipinas (BSP) showed FDI inflows declined by 31.5% to $505 million from a year ago. It also dropped by 23.13% from January.
Year to date, inflows slipped by 12.2% to $1.162 billion from a year earlier.
The inflows were the lowest since the $430 million recorded in August.
“FDI declined as uncertainties on the impact of the COVID-19 (coronavirus disease 2019) outbreak dampened investor sentiment,” the BSP said in a statement on Friday.
The Philippines had only three confirmed cases of coronavirus in February, all Chinese nationals.
BSP data showed net investments in debt instruments, which include intercompany borrowings, dropped by 26.4% to $317 million from a year earlier.
Reinvested earnings also decreased by 26.4% year on year to $59 million.
Equity other than reinvestment of earnings plunged by 43% to $129 million from a year ago. This, as placements fell by 45.2% to $145 million and withdrawals slid by 58% to $16 million.
The central bank identified Singapore, Japan and the United States as top sources for equity capital placements during the month. These flows went mainly into manufacturing, real estate, and wholesale and retail industries.
Inflows funneled into equity and investment fund shares likewise declined by 31.5% to $188 million from a year earlier.
Although there were no cases of local transmission of COVID-19 in the country at that time, investors were already concerned about the rising number of cases in other countries.
“Travel restrictions were already being implemented by many countries then. The hospitality sector was already badly affected,” Alvin P. Ang, an economist from Ateneo de Manila University, said in a text message.
Investor sentiment may have also been hurt by the Senate investigation of Philippine offshore gaming operators during the month, he added.
In the first two months of 2020, net investments in debt instruments plummeted by 44.1% to $550 million from a year ago. Reinvested earnings slipped by 16% to $131 million.
On the other hand, equity other than reinvestment of earnings for the two months surged by 162% to $481 from the same period last year.
Meanwhile, equity and investment fund shares fell by 12.2% to $1.162 billion from a year ago.
The central bank in November projected FDI inflows worth $8.8 billion this year, from $7.647 billion last year.
Ateneo’s Mr. Ang said inflows in the coming months will likely go further down as the economic impact of the pandemic widens.
“The February data is already superseded by falling trade and the lockdown in March,” he said.
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said May and June may see a slight recovery as the economy gradually reopens.
In an e-mail, Mr. Asuncion said FDI inflows will likely follow developments related to the vaccine, while consumers will seek transparency from the government regarding efforts against the virus.
“The emergence of new low-touch and/or contactless types of businesses may offer some hope for investors, even as existing global firms struggle to survive in the new way of doing things post-pandemic,” he said.
Meanwhile, Fitch Solutions said investor sentiment on the Philippine market was already affected by other factors before the health crisis.
“Indeed, the outbreak will aggravate the already notable structural barriers that deter investment into the Philippines, namely logistics and an uncertain policy backdrop, weakening the longer-term outlook for both growth and the country’s exporting capabilities,” it said in a note sent to reporters.
Fitch Solutions cited the lack of infrastructure and connectivity in global supply chains that has hampered the Philippines’ ability to attract investments.
“There has been a failure to move forward with the second package of tax reforms, which plans to lower the country’s corporate income tax rate from a regionally high level of 30%, to 20% by 2029 in line with Taiwan and Vietnam. Without reforms and an ability to address the barriers to FDI, the Philippines economy may grow at a slower pace long term,” Fitch Solutions said.
Congress has not yet passed the proposed Corporate Recovery and Tax Incentives for Enterprises Act, which will immediately reduce corporate income tax to 25%.
JAPAN CREDIT Rating Agency said the impact of the coronavirus pandemic on the Philippine economy will likely be temporary. — REUTERS
JAPAN CREDIT Rating Agency (JCR) on Thursday upgraded the Philippines’ credit rating to “A-” from BBB+, saying it expects the economic impact of the coronavirus pandemic to be temporary.
At the same time, JCR assigned a “stable” outlook on the rating, suggesting this will likely be maintained in the near term.
“JCR holds that a downturn will be limited given the country’s strengthened economic base, resilient external position, and the government’s economic stimulus package totaling more than 9% of gross domestic product,” said the government’s Investor Relations Office (IRO) in a statement on Thursday, citing the JCR report.
“JCR also considers that the fiscal soundness will not be impaired because while the fiscal deficit may widen, the package at this time is justifiable and the government debt will remain comparatively subdued,” it added.
The debt watcher cited the stability of the country’s banking industry, which has a capital adequacy ratio “at a comfortable 15%.”
It said the country’s external debt balance was manageable at 22.2% of the gross domestic product (GDP) as of end-2019 and also cited its ample dollar reserves.
“JCR holds that the country will show its high resilience even when global risk-off moves would be triggered again by a second wave of COVID-19 pandemic,” JCR said, noting it expects the country to grow at a pace of 6-7% within the medium term after a likely contraction in 2020.
JCR cited the country’s “massive relief measures” and its tax reform program.
The country’s upgrade to an “A” status is among the three upgrades out of the 14 rating actions from JCR that were mostly either downgrades, negative outlook revision, or rating affirmations.
Other “A-” rated countries with JCR include Thailand, Mexico, Hungary and Peru. Indonesia and India have “BBB+” ratings while Malaysia, Italy, Poland and Portugal are rated “A”.
“The credit rating upgrade from JCR bodes well for the Philippine government’s fund-raising activities, which in recent years have included regular issuance of Samurai bonds,” the IRO said, noting that many Japanese institutional investors go for countries with an “A-” rating or higher from JCR.
“The agency’s decision reflects its confidence that the Philippines is pursuing appropriate policies that will help Filipino individuals, businesses, and the economy at large to recover from this unprecedented crisis,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in the statement.
Fitch Ratings recently affirmed its “BBB” rating for the Philippines, but lowered the rating outlook to “stable” from “positive,” which means the rating is likely to stay for the next six months to two years.
S&P Global Ratings has likewise maintained its “BBB+” rating with a “stable” outlook for the country, citing expectations of a strong economic rebound after the coronavirus crisis. — Luz Wendy T. Noble
RESTAURANTS may soon be allowed to resume limited dine-in operations in Metro Manila and other areas under a general community quarantine.
Trade Secretary Ramon M. Lopez said in a radio interview on Thursday the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) had given the go signal for restaurants to resume dine-in operations at up to 30% capacity starting June 15.
“Malaking portion ng operation ng mga restaurant ang dine-in. Mga 70-80% po ’yan kaya mahalaga po, diyan po nakasalalay ’yung trabaho ng maraming kababayan natin (Dine-in is a large part of restaurant operations. It’s about 70-80%. That’s why it’s important. The work of many depend on that,” he said.
The IATF recommendations will be presented to President Rodrigo R. Duterte for final approval.
Metro Manila, Central Luzon, Cagayan Valley, Calabarzon, Central Visayas, Pangasinan, Mandaue City, Zamboanga City, Davao City, and Cebu City are now under a general lockdown, while all other areas are under a modified general community quarantine.
Restaurants can have dine-in operations up to 50% of capacity for areas that have shifted to the modified lockdown.
Salons and barbershops may also operate at 30% capacity for areas under a general lockdown, and must limit services to haircuts.
The Department of Trade and Industry has released guidelines on ensuring health safety for dine-in operations, banning buffets and self-service stations and prescribing sanitation measures.
Restaurants must also add floor markings and table dividers for social distancing, and must implement a “no mask, no entry” policy. Kitchen-based employees must be placed in groups according to their tasks.
Restaurants must also provide contactless transaction methods and small trays for accepting cash.
Mr. Lopez said the government, including the Trade, Tourism and Labor departments and local governments will randomly inspect restaurants for compliance.
“Hindi na naman ni-require mag-accreditation kasi baka tumagal pa at magkaroon pa ng (We don’t require accreditation because that might take time and it might create) bureaucratic red tape,” he said.
He added that restaurants not complying with the guidelines may be warned or closed down. — Jenina P. Ibañez
