5-mo debt payments up 21.6% to ₧624B By Bernadette D. Nicolas
@BNicolasBM
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HE national government’s debt payments for the first five months of the year hit P623.59 billion, a 21.57-percent surge from the same period in 2020. The government’s debt service from January to May this year rose from last year’s P512.96 bi l l ion a s a mor t i z at ion outpaced interest payments, data from the Bureau of the Treasury showed. Broken down, amortization grew by 26.11 percent to reach P444.99 billion from P352.85 billion in the same five-month period a year ago. Meanwhile, interest payments
from January to May 2021 also climbed to P178.6 billion, an 11.5-percent climb from P160.1 billion last year. Amortization refers to the repayment of loan principal over time, while interest payment refers to a payment determined by the interest rate of an account. Under domestic amortization, redemptions accounted for P291.8 billion, mainly comprising payments made to the government’s Bond Sinking Fund at P239.15 billion and domestic bond exchange at P51.54 billion. Amortization payments for a ssu med l i abi l it ies stood at P793 million while P331 million went to agrarian reform beneficiaries. O n t he ot her h a nd , foreig n
amor tization reached P153.18 bi l lion. For domestic interest payments, the bulk was spent for fi xed-rate Treasur y Bonds at P84.27 billion while P37.01 billion went to Retail Treasur y Bonds and P10.16 bi l l ion to Treasury Bills. Foreign entities were also paid P46.38 billion in interest payments during the period. For May alone, the government’s debt service bill spiked by 53.4 percent year-on-year to P37.8 billion from P24.64 billion, as interest payments grew at a faster pace than amortization. I nterest pay ment s soa red by 57.65 percent to P28.93 billion from P18.35 billion in May 2020.
Monday, July 12, 2021 Vol. 16 No. 271
In the same month, amortization amounted to P8.87 billion, 41 percent higher than last year’s P6.29 billion. This year, the government has programmed P1.79 trillion for its debt service, with P1.26 trillion allotted for principal amortization and P531.55 billion in interest payments. In 2020, the government spent P962.47 billion to service its debts as it needed to keep up with more financial obligations to fund its war chest against the Covid-19 pandemic. Outstanding debt of the national government as of end-May this year has already ballooned to a record P11.07 trillion, up by 13 percent from P9.795 trillion as of end-2020.
EXPORT GOAL REVIEWED AMID SHIPMENT DELAYS
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LEECHIU: OFFICE SPACE DEMAND EXPANDS IN Q2 By VG Cabuag @villygc
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EMAND for office spaces grew during the second quarter of the year, its highest since the pandemic struck the country last year as investor’s sentiments continue to improve, according to data of Leechiu Property Consultants. Leechiu data showed office demand reached 169,000 square meters for the second quarter of the year, up 39 percent from the previous quarter’s 122,000 square meters and 77,000 square meters in second quarter of 2020. The company’s CEO David Leechiu said office demand is the highest in the second quarter it has been since the start of the pandemic. As of the first half, it is now at 291,000 square meters. “This is already 75 percent
The Metro Manila Development Authority (MMDA) has installed emergency lay-bys along major thoroughfares in the metropolis for motorcycle and bicycle riders to safely pull over and shelter during heavy rains. “We understand the plight of motorcycle riders when they have to stop in the middle of the road while waiting for the rain to stop, it’s very risky for them because they might get into a road accident. At least with the emergency lay-by, they can take cover during heavy rains,” MMDA Chairman Benjamin Abalos Jr. said at Friday’s unveiling of one such shelter beneath the Quezon Avenue Flyover on Edsa. He reminded riders that the emergency lay-by is for rain shelter only, and that MMDA personnel will enforce rules on illegal parking. NONIE REYES
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By Tyrone Jasper C. Piad @Tyronepiad
HE Department of Trade and Industry (DTI) is assessing a possible downgrade of the Philippines’s export target this year amid the pandemic-induced shipment delays that have plagued local industry players for at least half a year already.
Trade Secretary Ramon Lopez said the DTI is looking into the current situation of the exportoriented companies to gauge the impact of the container imbalance
on their operations and revenues. “[We are] currently assessing impact and we shall revisit targets,” Lopez told the BusinessMirror. Continued on A2
PESO exchange rates n US 49.8700
of demand for the entire 2020. There is no doubt that the Philippines is back on the radar of global occupiers,” he said. The figure, however, is still far from the 845,000 square meters of office demand in the first half of 2019. Leechiu said the business process outsourcing industry accounted for 92,000 or more than half of the demand for the second quarter. It grew more than double from the first quarter’s 35,000 square meters driven by economic stability in the West, he said. “Even if they were relatively quiet in 2020, BPOs are back,” said Leechiu. “The same fundamentals that attracted BPOs to the Philippines during the financial crisis of 2008 are once again working for us,” Leechiu said. See “Office space demand,” A2
Bayanihan 2 mandates continue–Angara By Butch Fernandez
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@butchfBM
HE chairman of the Senate Finance Committee on Sunday gave assurances that key provisions of the Bayanihan 2 for the pandemic response can continue to be implemented despite the June 30 expiry of the law. In particular, Senator Juan Edgardo Angara cited those items providing crucial support for medical frontliners; easing “permitting requirements” for vital infrastructure like telco towers; benefits for agrar-
ian reform clients; and support for pandemic-impacted transportation sector. Asked which provisions will remain in effect even after the June 30 expiration, Angara said in a radio interview the most crucial of these are benefits of medical frontliners “As long as there is that declaration of an emergency situation by President Duterte, until revoked, the provisions for our medical frontliners, including benefits for them should be continued,” Angara said in a mix of English and Fili-
pino, recalling that “these were in Bayanihan 1, and we repeated this in Bayanihan 2.” A nga ra added t here were “other provisions that did not expire, including the permitting requirements for large infrastructure projects,” or what are called measures for “streamlining” activities crucial to the pandemic response. For instance, the senator cited applications for cell site tower permits, as he pointed out this is a key ingredient in boosting connectivity. With the “internet being essential in a pandemic, only
minimal permitting requirements are imposed for building cell sites,” he explained. This streamlining measure is good for three years, he added. At the same time, Angara noted the transportation industry was also among the most adversely affected by the Covid-19 pandemic. “Whether for air, sea, land—everyone in this sector suffered,” he said, with “several businesses even filing for bankruptcy.” Thus, provisions meant to help them recover, will continue, Angara assured. See “Bayanihan 2,” A2
n japan 0.4544 n UK 68.7558 n HK 6.4201 n CHINA 7.6829 n singapore 36.8834 n australia 37.0484 n EU 59.0810 n SAUDI arabia 13.2969
Source: BSP (July 9, 2021)