BSP expects inflation to fall further in May IN BRIEF

DBP appeals proposed merger with LandBank

STATE-RUN Development Bank of the Philippines said Wednesday it will continue to exhaust available remedies under existing laws on its proposed merger with Land Bank of the Philippines.

DBP said that on May 18, it formally submitted an appeal memorandum to the Office of the President, which contains, among others, the extensive discussion of responses and counter arguments of the bank to the justifications raised by the proponents of the merger, principally the Department of Finance.

It said the “perfected appeal” would now be subject to reglementary review mechanisms under Administrative Order No. 22 (s.2011), which prescribes the rules and regulations governing the appeals to the OP. The bank said under Section 9 of AO No. 22, “execution of the decision/resolution/order appealed from is stayed” until the OP makes its decision final and executory.

“We strongly aver that the provisions of AO No. 22 are consistent with and underpins DBP’s unequivocal stand on the need for an independent body that would thresh out all possible issues, concerns and ramifications with utmost impartiality and equanimity in order to formulate a viable solution that advances the welfare of both financial institutions and the banking and finance community as a whole,” DBP said. Julito G. Rada

CPG

buys Mitsubishi’s

stake in PHirst Park Homes

CENTURY Properties Group Inc. said Wednesday it is buying out Mistubishi Corp.’s 40-percent stake in affordable housing joint venture for P1.3 billion, ending its five-year partnership.

CPG said Wednesday Mitsubishi is selling its stake in PHirst Park Homes Inc. and Tanza Properties Inc., giving the real estate developer full ownership of the fast-growing business unit.

“This acquisition is part of the group’s strategic move to consolidate interests in account the slowdown in inflation in the past months. Before this, the BSP raised the overnight borrowing rate by 425 basis points from just 2 percent in 2021 to tame the inflation and temper the demand for loans. the business segment where the market is robust, allowing us to create more value for our stakeholders, contribute more to serving the needs of our fellow Filipinos for decent, quality and affordable first homes while helping address the huge housing backSlog that the administration is working on,” CPG executive chairman and Amb. Jose Antonio said.

Data from the BSP showed that bank loans grew 9.7 percent in April, slower than 10.2 percent in March, pulled down by higher interest rates and elevated inflation.

Mitsubishi Corp. executive vice president and group CEO for urban development group Takuya Kuga said the divestment is aligned with the group’s business direction in the region.

“The great outcome that we initially projected to achieve in 10 years’ time has been substantially realized within 5 years. As MC has already achieved its optimal goal for this particular investment, we believe that it is the ideal opportunity to pursue new seeds of growth in other emerging markets both in the Philippines and the Asian region,” Kuga said. Jenniffer B. Austria

ERC asks 25 electric co-ops

on pass-through

fuel

Costs

THE Energy Regulatory Commission said Wednesday it issued 33 show cause orders directing 25 electric cooperatives and three private distribution utilities to explain why they should not be penalized for failure to provide information on the pass-through fuel costs charged to customers.

It noted an ongoing fuel audit that aims to verify the accuracy of fuel charges imposed on electricity consumers under the power supply agreements. The regulator said the SCOs were issued against the distribution utilities over their failure to provide the necessary information within the prescribed timelines set by ERC regulations, including Resolution No. 16, Series of 2009, Resolution 24, Series of 2011 and the respective ERC approvals of the PSAs.

It said the submission of reports related to fuel charges is a condition for the grant of authority to charge generation rates under their PSAs.

The commission said the DUs’ non-compliance with reportorial requirements undermines their primary obligation to procure energy supply for its captive consumers in the least cost manner.

“The DUs in question have been directed to provide verified explanations to the ERC or face potential administrative penalties,” ERC said. Alena Mae S. Flores