LOAN NEGO SUSPENSION ORDER LIFTED By Samuel P. Medenilla
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Duterte had ordered the suspension on August 27, 2019, after expressing his outrage against the UNHRC resolution proposed by representatives from Iceland, urging UN rights chief Michelle Bachelet to compel the Philippine government to give a comprehensive report on the alleged widespread extrajudicial killings in the country. The Iceland resolution drew the support of 18 countries: Argentina, Australia, Austria, Bahamas, Bulgaria, Croatia, Czech Republic, Denmark, Fiji, Iceland, Italy, Mexico, Peru, Slovakia, Spain, Ukraine, the United Kingdom and Uruguay.
@sam_medenilla
R ESIDENT Duter te on Wednesday finally lifted the suspension of the country’s signing of or negotiations for loans and grants with countries that cosponsored and/or voted in favor of the July 11, 2019, resolution of the United Nations Human Rights Council (UNHRC). The announcement on the lifting of the suspension was contained in a memorandum signed and issued by Executive Secretary Salvador C. Medialdea on February 27, 2020.
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Thursday, March 5, 2020 Vol. 15 No. 147
P25.00 nationwide | 6 sections 58 pages |
PHL eyes loan as WB preps $12-B virus fund T
By Cai U. Ordinario @caiordinario & Bernadette D. Nicolas @BNicolasBM
HE World Bank has made available $12 billion worth of immediate support for countries in their response to coronavirus disease 2019 (Covid-19), a development that Manila welcomed, as it is in talks with donors for a planned loan package for the coronavirus outbreak and “similar events.” In a statement, the Washington-based lender said the fasttrack financing is designed to help member-countries take effective action to respond to and, where
possible, lessen the tragic impacts posed by Covid-19. T he funds w ill be used to strengthen health systems, provide better access to health ser-
vices to safeguard people from the epidemic, strengthen disease surveillance, bolster public health interventions and work with the private sector to reduce the impact
“Please be informed that such directive [issued on August 27, 2019] is hereby lifted, effective immediately,” Medialdea said in his February 27 memorandum. The lifting will allow the government to get loans and grants from the aforementioned countries provided these go through the “necessary approvals, authorities, and clearances” from concerned government agencies and authorities. The development comes amid Duterte’s recent statement that the country is now striving to achieve a more independent foreign policy, particularly when it comes to securing its borders.
Pass money-laundering amendments now–AMLC By Jovee Marie N. dela Cruz
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“We are currently in discussions....on a loan package with multilateral agencies, and this announcement of WB [World Bank] is certainly welcome.” —Dominguez
on economies. Meanwhile, in Manila, Finance Secretary Carlos G. Dominguez III said in a Viber message to reporters, “We are currently in discussions...on a loan package with multilateral agencies, and this announcement of WB [World Bank] is certainly welcome.” See “WB,” A2
DOF won’t give up on Citira despite tight sked
@joveemarie
HE Anti-Money Laundering Council (AMLC) on Wednesday called on Congress to immediately pass the bill amending the Anti-Money Laundering Act (AMLA) to address strategic deficiencies in the country’s law. At the hearing of the House
Committee on Banks and Financial Intermediaries, AMLC Executive Director Atty. Mel Georgie Racela warned that failure to amend the weak areas in the AMLA may place the Philippines in the grey-list jurisdiction and even face blacklisting by the Financial Action Task Force (FATF). The FATF publicly identifies Continued on A2
Overcoming ‘Sinophobia’ Rene E. Ofreneo
laborem exercens
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enophobia, the “stigmatization” of foreigners or ethnic/cultural communities in society, has been rising in many parts of the world. It is most pronounced in Europe and North America, where migrant workers are blamed by populist politicians as the reason for widespread unemployment and the diminishing quality of life of the “native” citizens. To endear himself to his xenophobic political base, Donald J. Trump is even aggressively pushing for the building of a 900-mile wall between the United States and Mexico, to prevent Latino migrant workers from South America from reaching the land of milk and honey. Somehow, Trump has forgotten that America is a land of migrants and that America’s rise on the world stage was due to the collective labor of migrant families, past and present. Continued on A7
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VEN with just a week left before Congress goes on a break, the Department of Finance (DOF) is not backing down on its push for the passage of the bill rationalizing incentives as it is determined to convince the Senate leadership to prioritize the measure. This, even after Senate President Vicente Sotto III said that they may delay action on the pending economic bills, including the Corporate Income Tax and Incentives Rationalization Act (Citira), should the situation worsen amid the coronavirus outbreak. “We are requesting the Senate leadership to consider prioritizing Citira,” Finance Secretary Carlos G. Dominguez said in a Viber message to reporters. The measure, approved by the House of Representatives last year and now just awaiting Senate approval, will cut corporate income tax to 20 percent by 2029, from 30 percent at present, and overhaul incentives granted to investors. However, Congress is set to go on a break from March 14 to May 3. See “Citira,” A2
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RUSH-HOUR BLUES Motorists chafed in heavy traffic along Edsa-Balintawak in Quezon City on Wednesday after a contractor closed off a portion of the busy thoroughfare as part of the construction works for the Skyway Stage 3 project. NONOY LACZA
Domestic liquidity expands faster in January–BSP
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ASH circulating in the economy grew faster in January, compared to the level seen in December 2019, due largely to the decision of the Bangko Sentral ng Pilipinas (BSP) to cut the overnight reverse repurchase (RRP) facility and reserve requirement ratio. The BSP reported that the country’s domestic liquidity—broadly measured as M3— expanded in
January by 11.9 percent to about P12.8 trillion. The rate of expansion is faster than the 11.3-percent recorded in December 2019. A growing cash supply is often beneficial for an expanding economy such as the Philippines, as it provides fuel to the productive sectors of the country. An excessively slow growth in M3 could be detrimental to growth
especially if it is not enough to fund economic activities. An excessively high cash supply growth, meanwhile, could stoke inflationary pressures and pull up prices. Security Bank economist Robert Dan Roces said the continuous rise in the country’s cash supply is proof that the cuts implemented by the BSP are “optimal.” See “Domestic liquidity,” A2
US 50.6860 n japan 0.4732 n UK 64.9490 n HK 6.5229 n CHINA 7.2657 n singapore 36.5278 n australia 33.3615 n EU 56.6416 n SAUDI ARABIA 13.5102
Source: BSP (4 March 2020)