Bank loans post slower growth on elevated inflation

By Julito G. Rada

THE outstanding loans of universal and commercial banks posted a slower growth of 9.4 percent in May from 9.7 percent a month ago, partly due to higher interest rates and elevated inflation, data released by the Bangko Sentral ng Pilipinas released over the weekend show.

On a month-on-month seasonallyadjusted basis, outstanding universal and commercial bank loans, net of reverse repurchase placements or RRPs, increased by 0.7 percent.

“The moderation in bank lending activity reflects the impact of the BSP’s cumulative policy rate adjustments. Looking ahead, the BSP will continue to ensure that domestic liquidity and credit dynamics are in line with its price and financial stability mandates,” BSP said in a statement.

BSP kept the overnight borrowing rate of 6.25 percent in its meeting in the latter part of June 2023, taking into account the continued slowdown in inflation for the past four months from a peak of 8.7 percent in January 2023. The average inflation in the first five months of 7.5 percent remained way over the target range of 2 to 4 percent.

Gov’t urged to

encourage local PUV manufacturing

AC Motors asked the government to encourage automotive stakeholders to manufacture local mini vans and multi-purpose vans for public utility vehicle use.

“We need to define our own niche the way Thailand and Indonesia defined their own. Instead of competing with them in the cars category, why not we focus on commercial vehicles for PUV use,” said AC Motors president for Automobile Group Antonio Zara III. He said the Philippines has yet to catch up with cars manufacturers in the region.

Zara said the country’s most ambitious automotive incentives program is not delivering as expected.

“Even China is not producing this. And the demand for such vehicles is insignificant to these markets. But it’s not insignifi cant for us. What if we can own it for the world,” he said.

Zara said the Comprehensive Automotive Resurgence Strategy program of the Department of Trade and Industry is not yet successful and the Philippines is in a better position to develop the van category for the PUV segment.

While there is a slim chance of exporting the mini vans and MPVs, the local transportation sector is needing more modern PUVS for the commuting population, he said. Othel V. Campos

By Alena Mae S. Flores

POWER retailer Manila Electric Co. forecasts electricity prices to go down this month amid to lower demand due to the onset of the rainy season.

“Initial indications show a possibility of lower generation charge in the July bills. This is due to lower demand we’ve observed with the onset of the rainy season which could have an effect on WESM [Wholesale Electricity Spot Market] prices,” Meralco spokesperson Joe Zaldarriaga said.

Average WESM prices declined by P1.73 per kilowatt-hour in the first two weeks of June driven by demand reduction and supply increase.

Average WESM prices in Luzon and Visayas dropped to P7.10 per kWh as of June 12 from P8.83 per kWh in May.

“In addition, prices of coal in the international market have also gone down and will likely reflect in our suppliers’ charges in the incoming billing month,” Zaldarriaga said.

Meralco is expected to release its July rates next week.

The company announced an increase in rates by P0.4183 per kWh last month due to the completion of the last refund and higher prices at the spot market.

Meralco’s overall rate for a typical household went up to P11.9112 per kWh from P11.4929 per kWh in May.

Peak demand in May reached 12,431 megawatts, the highest so far on record.

The grid was also placed on yellow and red alerts last May 8.

Meralco sourced the bulk of its requirements from its power supply agreements, followed by the independent power producers and the WESM.

Meralco is the country’s biggest power producer with over 7.6 million customers in its franchise area.

NUCLEAR ENERGY MEET. Experts from around the Asia Paci c region gathered on June 30, 2023 to discuss the viability of nuclear energy and emerging technologies for a sustainable future. In photo (from left, rst row) Aboitiz Group president and chief executive Sabin Aboitiz; Toronto Region Board of Trade president and chief executive Jan De Silva; Energy Secretary Raphael Lotilla; Aboitiz Group chief reputation and sustainability o cer Ginggay Hontiveros-Malvar; (from left, second row) Philippine Energy E ciency Alliance vice president Ruth Yu-Owen, Aboitiz Power president and chief executive Emmanuel Rubio; Indonesia National Research and Innovation Agency main expert researcher Dr. Ir. Anhar Riza Antariksawan, Kyoto University Institute for Integrated Radiation and Nuclear Science professor emeritus Dr. Ken Nakajima, (from left, third row) 2nd District Pangasinan Congressman Mark Cojuangco; Ontario Ministry of Energy chief of sta David Donovan; CANDU Energy senior vice president of major project Julianne den Decker and ROSATOM State Atomic Energy Corporation department head Svyatoslav Pikh.