Australia’s Afterpay settles with regulator for loans issued without license

March 18, 2020 | 12:02 am

AUSTRALIA’S buy-now-pay-later firm Afterpay Ltd. will refund late fees paid by customers in California for loans, which were deemed “illegal” by the US state’s financial regulator, the two sides said as part of a settlement.

The company will pay A$1.5 million ($916,350), of which $905,000 will go to about 640,000 consumers in California who paid late fees and the rest will be administrative fees.

The settlement is for loans issued before Afterpay had a California financing law license. It was granted a license in November last year.

The increasingly popular buy-now-pay-later space has been facing increased regulatory scrutiny, and Afterpay, considered by many as the sector’s bellwether, has faced the brunt of it back home in Australia too.

Shares plunged 10.2% in early trade, only to recover to be down 4.5% in a little over one hour of trading. The broader index was in positive territory after closing sharply lower on Monday.

Earlier this year, California’s financial regulator, the Department of Business Oversight (DBO), had also rapped Minneapolis-based and Australia-listed Sezzle Inc. for giving out credit without a license.

“While Afterpay does not believe such an arrangement required a license from the DBO or was illegal, Afterpay has agreed to conduct its operations under the DBO license as a part of this settlement,” a company spokeswoman said in an e-mail to Reuters.

Buy-now-pay-later firms have gained traction, mainly with millennials, by giving an option to buy things through interest-free installments and helping them sidestep tougher rules related to taking a credit card or loan. — Reuters

Transcom suspends operations in Metro Manila

March 18, 2020 | 12:02 am

By Jenina P. Ibañez, Reporter

BUSINESS PROCESS outsourcing (BPO) firm Transcom Worldwide AB suspended its Metro Manila operations amid the Luzon-wide community quarantine.

Transcom Global English Region Chief Executive Officer Mark Lyndsell said in a mobile message sent by staff on Tuesday that the company is prioritizing the safety of employees.

“We temporarily suspended our operations in Manila and made sure our employees were able to travel safely and secured in their homes,” he said.

President Rodrigo R. Duterte on Monday announced an enhanced community quarantine in Luzon, which suspends public transportation and implements strict home quarantine.

Business process outsourcing firms, under the community quarantine memorandum, can remain operational under conditions that strict social distancing is applied and offices retain a minimal workforce. The offices are also required to provide temporary accommodations for employees by March 18.

The company is running payroll early.

Transcom’s five Philippine locations run a third of its global operations.

Mr. Lyndsell said work from home arrangements for some personnel had been in effect prior to the quarantine declaration.

“We have been sharing some of our work with other local and global sites,” he said.

Transcom also has Philippine sites in Bacolod and Iloilo.

“Transcom will follow the guidelines set by the government specifically for BPO companies’ continued operations in Metro Manila and we will be ready to resume work immediately within the given parameters.”

Suspension began Monday, while the date of resumption has not yet been announced.

The story has been updated to reflect a clarification made by Transcom.

Tom Hanks, Rita Wilson leave hospital after virus treatment

March 18, 2020 | 12:01 am

SYDNEY — Oscar-winning actor Tom Hanks and his wife, Rita Wilson, have left a hospital in Australia’s Queensland state five days after testing positive for the coronavirus, People magazine reported on Monday.

The pair are now resting at a rented home in Australia and remain under quarantine in the house, the US magazine’s report said, citing a representative of the actor.

Last week, Hanks wrote on Twitter that he and Wilson had tested positive for the virus in Australia, where he is working on a film, after they felt tired and achy with slight fevers. Both Hanks and Wilson are 63 years old.

Hanks had traveled to the Gold Coast, on Australia’s east coast south of Brisbane, to begin filming a movie about Elvis Presley. He is set to play Presley’s manager, Colonel Tom Parker, in the Warner Bros. production. Warner Bros is owned by AT&T.

Hanks and Wilson were the first major American celebrities known to have contracted the coronavirus, which causes a disease, COVID-19, that has killed more than 70 people and infected more than 3,800 in the United States. — Reuters

BoJ pumps $30 billion through 3-month dollar operation, largest since 2008

March 18, 2020 | 12:01 am

THE BANK of Japan’s move came as global monetary authorities eased. — *WIKIPEDIA.ORG*

TOKYO — The Bank of Japan (BoJ) pumped $30.272 billion into markets on Tuesday with an 84-day dollar funding operation, its first after global central banks agreed this week to offer three-month credit to ease funding constraints amid the coronavirus crisis.

The takeup was the largest since the BoJ offered $30.584 billion in an 84-day dollar funding operation on Dec. 2, 2008, in the wake of the market turmoil triggered by the global financial crisis.

It also exceeded the $17 billion offered by the US Federal Reserve in its 84-day operation on Monday.

The BoJ’s move came after the world’s six major central banks took a joint step to provide more cash dollars on Sunday as a rout in financial market over the past week led to a scramble by banks and companies for dollar liquidity.

Yet, even after the Fed’s emergency 100-basis-point rate cut over the weekend and the renewal of its quantitative easing program to increase cash in markets, there was little noticeable easing in the rush for dollar financing.

Funding constrains could ease gradually after big dollar injections from the BoJ and other central banks, said Yusuke Ikawa, Japan strategist at BNP Paribas.

“Today’s results suggest that there are now abundant dollar cash at least among people who have access to the BoJ. The key point now is whether this money will spread to various companies and others that need them,” he said.

In one possible sign of some easing in stress, the dollar/yen basis swap — the additional costs dollar borrowers need in short-term dollar/yen swaps — have eased to 91 basis point from high of 142 basis points on Monday.

The BoJ also supplied $2.053 billion in a seven-day operation. — Reuters

Asian stocks fall after historic Wall Street plunge

March 18, 2020 | 12:01 am

TOKYO — Asian shares fell on Tuesday in a topsy-turvy session following one of Wall Street’s biggest one-day routs in history as headlines about the coronavirus outbreak and its global economic impact whiplashed investor sentiment.

Financial markets cratered on Monday with the S&P 500 tumbling 12%, its biggest drop since “Black Monday” three decades ago, as a series of emergency central bank rate cuts globally only added to the recent sense of investor panic.

While some markets such as US stock futures bounced in Asian trade after the major plunge, there were no convincing reasons for a sustained rally.

MSCI’s broadest index of Asia-Pacific shares outside Japan gave up early gains to trade 0.5% lower. Japan’s Nikkei stock index fell 0.06% and South Korea’s KOSPI was off 2.16%. Australian shares were up 2.73% although this followed a plunge of almost 10% on Monday.

“The move in US stock futures prompted some buying of battered down sharers and lifted dollar/yen,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

“The focus is shifting to the fiscal response to the virus. We’re locked in a pattern where markets bounce and then resume falling.”

US stock futures rose by their daily limit in Asian trading, also driven in part by hopes for big US fiscal spending. This lifted some Asian bourses into positive territory, but the gains did not last.

Some $2.69 trillion in market value was wiped from the S&P 500 on Monday as it suffered its third-largest daily percentage decline on record. Over the past 18 days, the benchmark index has lost $8.28 trillion.

Gold, which is normally bought as a safe-haven, extended declines on Tuesday as some investors chose to sell whatever they could to keep their money in cash.

Oil futures rebounded in Asia, but downside risks remain due to an expected slump in global energy demand and Saudi Arabia’s plans to increase crude output to expand its market share.

The US Federal Reserve stunned investors with another emergency rate cut on Sunday, prompting other central banks to ease policy in the biggest coordinated response since the global financial crisis more than a decade ago.

Investors, however, are worried that central banks may have spent all their ammunition and that more draconian restrictions on personal movement are necessary to contain the global coronavirus outbreak.

Group of Seven finance ministers are likely to hold a call on Tuesday night, which has fueled speculation that a coordinated fiscal response could be in the works. — Reuters

NOTICE

Trading at the Philippine Stock Exchange, as well as clearing and settlement at the Securities Clearing Corporation of the Philippines, are suspended “until further notice” as Luzon is now under “enhanced community quarantine.

Manila Water extends payment date for bills

March 18, 2020 | 12:01 am

MANILA WATER CO., Inc. has extended the due date for the water bill payments of its customers in response to the month-long “enhanced community quarantine” set by the government on Luzon.

In a statement released yesterday, Manila Water announced that water bills with due dates that fall within the quarantine period are the ones that will be covered by the extension.

There are alternative payment modes in lieu of the “enhanced community quarantine” protocol set by the government. Customers who want to pay their bills can access other payment methods such as online banking and online payment channels such as GCash.

Manila Water President and Chief Executive Officer Jose Rene Gregory D. Almendras guaranteed that there is ample and uninterrupted water supply for all its customers, unless there are ongoing emergency repairs and maintenance activities.

“The welfare of our customers is our primary concern as we all work together to prevent the spread of COVID-19. Our concern is for them not to go out and risk infection just to pay. We encourage them to follow President’s call to stay home,” he said. — Revin Mikhael D. Ochave

Comparison of lethal coronavirus-related outbreaks

March 18, 2020 | 12:00 am

Human Settlements dep’t orders 3-month freeze on gov’t mortgage payments

March 17, 2020 | 9:18 pm

THE Department of Human Settlements and Urban Development (DHSUD) ordered a three-month moratorium on loan payments to government agencies providing housing finance during the Luzon enhanced community quarantine.

“’Yung Pag-IBIG, National Home Mortgage Finance Corporation (NHMFC), Social Housing Finance Corporation (SHFC), National Housing Authority (NHA), magkakaroon po kami ng moratorium sa mga payment ng mga housing loan at multi-purpose loans ng ating mga miyembro (Pag-IBIG, NHMFC, SHFC and NHA will observe a moratorium on payments of housing loans and multi-purpose loans), from March 16 to June 15. So for three months we will not collect payments from our members,” DHSUD Secretary Eduardo D. del Rosario said in a radio interview Tuesday.

Pag-IBIG Fund is the trading name of the Home Development Mutual Fund and finances mainly low-cost housing.

He said borrowers will not be charged interest or penalties on deferred loan payments.

Mr. Del Rosario added that members making payments during the moratorium can still do so online and via accredited institutions such as Bayad Centers.

“’Yung mga gusto namang magbayad dahil mas mabilis na matapos ang kanilang pagbabayad ng kanilang loans ay wala ring problema. May online payments na at tsaka meron tayong accredited institutions para dun sila magbayad (Those who would like to continue paying to bring their loan balances down can pay online and at accredited payment centers)” he said.

Meanwhile, Pag-IBIG said members seeking financial assistance can avail of its calamity loan program.

“Para po sa mga miyembro natin, dito po sa Luzon, lalo na po ’yung nasa NCR (National Capital Region), basta po na declare na may state of calamity, ’yung calamity loan program natin ay na-ti-trigger. Ito po ang pinaka murang pautang para sa mga miyembro, 5.95% lang po ang interes (For members in Luzon, especially in the NCR, a state of calamity declaration will trigger the release of calamity loans, which are low-cost at 5.95% only),” Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said in a radio interview Tuesday.

Members can borrow up to 80% of their Pag-IBIG Regular Savings. On average, each member receives up to P20,000 for approved calamity loans, Mr. Moti said.

The enhanced community quarantine is pushing Pag-IBIG to explore alternative loan filing methods, Mr. Moti said.

“Meron po tayong online filing. May kailangan po kasing pirma ng mga employers. Ang mga ang employers po natin ay naka work from home din po so inaaral po natin ngayon kung kakayanin na yung mga fund coordinators po natin dito sa may Luzon na baka pwede sila po ang mag-e-mail sa amin at sila ang mag-certify bale (For our online filing channel, applications require an employer’s signature, and even they are working from home, so we are studying how fund coordinators in Luzon can work around these constraints via e-mail),” he said.

Mr. Moti said that members can also use drop boxes in all Pag-IBIG Fund branches to submit their loan applications, adding that workers from exempt industries like Business Process Outsourcing can go to nearby pag-IBIG locations.

Mr. Moti added that members can avail of both the calamity and the multi-purpose loans.

The Pag-IBIG Fund Multi-Purpose Loan may be used on members’ immediate financial needs, according to the Pag-IBIG website. — Genshen L. Espedido

MRT-3 rehab suspended for duration of quarantine

March 17, 2020 | 9:18 pm

THE Department of Transportation (DoTr) said the rehabilitation of the Manila Metro Rail Transit System (MRT)-3 will be suspended during the one-month enhanced community quarantine imposed on Luzon.

“Wala pong rehabilitation (There will be no rehabilitation) for the duration of the enhanced quarantine,” MRT-3 Director for Operations Michael J. Capati told reporters in a Viber message Tuesday.

President Rodrigo R. Duterte ordered Luzon placed under “enhanced community quarantine” to stop the COVID-19 outbreak that has killed at least 12 people in the Philippines.

The governments ordered the suspension of operations of public utility buses, jeepneys, taxis, transport network vehicle service (TNVS) ride-share vehicles, FX and UV Express vans, Point-to-Point (P2P) buses, motorcycle taxis, and trains.

The Trade department said supermarkets, drugstores and banks will remain open, while cargo will be allowed to cross checkpoints unhampered.

MRT-3 service providers Sumitomo Corp., Mitsubishi Heavy Industries Engineering, Ltd., and TES Philippines, Inc. (Sumitomo-MHI-TESP) have been contracted to overhaul all 72 Light Rail Vehicles (LRVs). The contractors are also to replace all mainline tracks, rehabilitate power and overhead catenary systems, upgrade signaling, communications and CCTV systems, and repair all escalators and elevators.

On whether the maintenance works are also affected, Mr. Capati said: “Skeletal po ang maintenance (Maintenance will be performed by skeleton crews).”

MRT-3 ticket sales fell 7.7% to P1.91 billion last year while ridership in the Baclaran-North Ave. line dropped 7.1% to 96.93 million, according to the DoTr.

In 2017, ridership was 140.15 million, up 4.6%, while ticket sales hit P2.78 billion, up 3.7%. — Arjay L. Balinbin

BIR sets June 15 payment deadline for amended ITRs

March 17, 2020 | 9:18 pm

THE Bureau of Internal Revenue (BIR) said it will waive penalties for income tax return (ITR) amendments provided that settlement payments are made on or before June 15, with the bureau still enforcing the April 15 filing deadline while Luzon is on lockdown.

BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular on March 16 reiterating that the tax filing deadline remains April 15. However, it allows taxpayers to file ITRs tentatively if they believe the return to be prone to error due to “limitations in the preparation” during the one-month lockdown.

The order allows amendments to be filed “at any time” with no penalty if any additional income tax is settled on or before June 15.

“Considering the limitations in the preparation of the AITR (annual income tax return) to be filed by concerned taxpayers due to the aforesaid lockdown, errors in the determination of their income taxes are possible. Hence, taxpayers, at any time, can amend their AITR filed, provided the concerned taxable period has not been the subject of an audit,” according to the circular, a copy of which was sent to journalists Tuesday.

“An amendment that will result in additional income tax to be paid, can still be paid without the imposition of corresponding penalties if the same shall be done not later than June 15, 2020,” it added.

The BIR also urged taxpayers to use its electronic facilities to file their tax returns to limit their exposure to COVID-9, which has infected 142 people and killed 12 in the Philippines so far.

Taxpayers can still file through over-the-counter through an authorized bank or via BIR revenue collection offices.

The bureau’s electronic channels include those offered by Land Bank of the Philippines and the Development Bank of the Philippines, Union Bank of the Philippines and e-wallet services like GCash and Paymaya.

“The filing of tax returns manually can still be done by those who are not mandated to file and pay electronically, if the AITR to be filed has tax due and payable. If there is no tax to be paid, the same are required to be filed through eBIRForm facilities,” according to the circular.

President Rodrigo R. Duterte on Monday placed Luzon under “enhanced community quarantine” until April 13 to slow the spread of the disease, ordering home quarantine for most residents and limiting non-essential movement.

The order suspends classes, public transportation and work in government offices except for those under minimal staffing arrangements. It also asked the private sector to halt operations or adopt work-from-home schemes, but exempted those providing basic services necessities from home quarantine, including workers at groceries, pharmacies, clinics, hospitals, restaurants with delivery service, banks, and utilities. — Beatrice M. Laforga

Checkpoint procedures set for vehicles carrying food

March 17, 2020 | 9:17 pm

THE Department of Agriculture (DA) said accredited cargo vehicles delivering food into Metro Manila can pass through checkpoints and use special lanes if they present passes and display decals, while drivers and passengers must also present accreditation documents and ID.

In a memorandum circular, the DA said the food lane system applies to vehicles delivering produce into the quarantine area, while occupants of the vehicles will also be subject to temperature checks.

The Bureau of Plant Industry (BPI) will issue decals to vehicles carrying vegetables and root crops while the Bureau of Animal Industry (BAI) will issue passes for poultry and meat cargoes.

The Bureau of Fisheries and Aquatic Resources (BFAR) will issue decals for vehicles carrying fish and other aquaculture products while the National Meat Inspection Service (NMIS) will issue passes for vehicles carrying processed meat.

The so-called “green lanes” or “food fast lanes” are a component of the DA’s Food Resiliency Action Plan to ensure the continued supply of food for Metro Manila.

To be accredited, vehicles carrying food must present the vehicle’s Official Receipt of Registration (OR) and Certificate of Registration (CR), along with a food lane reference form and a sworn statement of commitment.

Accredited vehicles will be exempted from restrictions imposed by local government units (LGUs) from the point of origin to the destination and vice versa. — Revin Mikhael D. Ochave

Metro Manila construction materials prices rise in Feb.

March 17, 2020 | 9:17 pm

WHOLESALE prices of construction materials in Metro Manila rose in February, though the rate of growth slowed compared with a month earlier, the Philippine Statistics Authority (PSA) said.

Retail prices also rose, accelerating from January.

The construction materials wholesale price index (CMWPI) for the National Capital region (NCR) rose 1.5% year-on-year in February, compared to 1.8% in January.

The construction materials retail price index (CMRPI) in the NCR rose 1.1% in February, after coming in at 0.7% in January.

Price indices represent the weighted cost of a basket of goods relative to a base period.

The CMWPI took in slower rates of price increases in the prices of sand and gravel (2.5% from 3.9% in January); electrical works (2% from 3.2%); plumbing fixtures and accessories/waterworks (1.9% from 4.3%); and concrete products and cement (0.6% from 0.7%).

Price declines were noted in fuels and lubricants (-0.7% from 9.1%); doors, jambs and steel casements (-0.7% from -0.9%); and plywood (-0.1% from 0%).

Prices rose 7.5% for PVC pipes, unchanged from the rate recorded in the previous month. Steady price changes were also seen in glass and glass products (7.1%), painting works (1.1%), asphalt (0%), and machinery and equipment rental (0%).

Prices rose for hardware (5.3% from 4.9%), lumber (3.8% from 3.4%), G.I. sheets (4% from 3.9%), reinforcing and structural steel (0.2% from 0%), and tileworks (17.5% from 16.1%).

The CMRPI incorporated faster price growth in painting materials and related compounds (1.7% from 1% in January); carpentry materials (1% from 0.6%); miscellaneous construction materials (0.8% from -0.1%); electrical materials (0.6% from 0.5%); and masonry materials (0.5% from 0.2%).

The rate of retail price growth in tinsmithry and plumbing materials was unchanged at 1.3%, and 0.9%, respectively.

“It could be that demand for wholesale construction materials eased as the initial impact of COVID-19 spread. Bulk selling and its easing may be an early indication of a dampening of overall demand,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

In a phone interview, Federation of Philippine Industries Chairman Jesus L. Arranza said the costs of these construction materials are “expected to be higher” as there will be less production of such goods due to the disruptions to most construction projects with the implementation of an enhanced community quarantine in Luzon.

UnionBank’s Mr. Asuncion added: “Demand, overall, may soften as movement of people and goods in Luzon are hampered by the enhanced community quarantine. Both wholesale and retail may experience a slowdown.” — Carmina Angelica V. Olano