Beyond Business: Rethinking Microfinance
Banking can do more good for the poor than only helping entrepreneurs.
BY TIMOTHY OGDEN, JONATHAN MORDUCH | MARCH 28, 2013
In just 30 years, the microfinance movement has reached 200 million
people who had been deemed "unbankable." That's a stunning success. But
the narrative that drove this success has implicitly shut the vast
majority of the unbanked out of the system. That's why it's time to
change the story, and our minds, on how microfinance works.
The rise of the microfinance industry has been driven by a simple
narrative, most closely associated with Muhammad Yunus and the Grameen
Bank, joint recipients of the Nobel Peace Prize in 2006: Get capital
into the hands of competent but cash-starved entrepreneurs, who would
need loans of just a few hundred dollars to start shops and other
micro-enterprises. While this sort of lending is more complicated than
that, microfinance has certainly worked in the sense that most loans in
most countries are repaid on time, most lenders have steadily grown, and
most investors have been happy with the results.
By keeping the focus on small businesses, this microfinance narrative
keeps us in our comfort zone. We can intuit how small loans can make a
big difference for tiny enterprises that would otherwise depend on local
loan sharks or never start in the first place. More important, we can
imagine how such loans could be repaid with interest, yet still benefit
the poor. The problem is, by clinging to this concept, we have kept
ourselves from seeing what a more inclusive approach could mean for the
world's poor -- and what it is that actually makes the micro-loan model
work reasonably well today.
Consider Selco, an Indian company that sells solar-powered lighting to
people unable to connect to the grid, or for whom power outages are way
too common. The aim of Harish Hande, the engineer who founded Selco,,
was to give households an alternative to expensive, non-renewable power
sources.
Customers liked the Selco lanterns, but many balked at the price --
about $140 for the cheapest system. Hande saw that customers would only
be interested if they could make payments over time. So Selco built
partnerships with banks, and customers can now acquire lanterns and
solar panels by taking out loans payable in installments over 3-5 years.
Since 1995, about 150,000 customers have received such financing to
purchase solar-powered systems. As a result, their children can do their
homework at night, the air in their houses is cleaner, and their
businesses (if they have them) can stay open later.
A similar story can be told about WaterCredit, a non-profit organization
dedicated to financing improvements in household sanitation. To date,
WaterCredit has made 65,000+ loans that have brought access to clean
water and safe sanitation to close to 400,000 people in India,
Bangladesh, Kenya, and Uganda. The loans fund household water and
sewerage connections, toilets and pit latrines, tubewells, and rainwater
harvesting tanks.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Sunday, March 31, 2013
Friday, March 22, 2013
BSP to revise cross-selling regulations
BSP to revise cross-selling regulations
By Ted P. Torres (The Philippine Star) | Updated March 22, 2013 - 12:00am
MANILA, Philippines - The cross-selling regulations of the Bangko
Sentral ng Pilipinas (BSP) is presently undergoing revisions.
According to BSP Deputy Governor Nestor Espenilla Jr., specific
proposals are already in draft form and that these are being distributed
for comments with the different institutions involved.
"We already have specific proposals, and that it is just undergoing
final legal review for the BSP," Espenilla said.
Espenilla said they are consulting with banks and other interested
parties. "I assure that it will be responsive to what the bankers are
saying," he said.
The present practice of cross-selling under BSP regulations allows
universal banks or expanded commercial banks to offer their products and
services to affiliate entities, such as life insurance firms.
BSP Circular 357 issued in 2002 also states that for an insurer to be
classified as an affiliate, the bank must own at least five percent
equity of the said entity.
The possible amendments to the circular will open the practice of
cross-selling among commercial and thrift banks.
Espenilla said that in the case of life insurance, the new proposal may
allow the sale of life insurance but limited to traditional or pure
protection insurance products. "It should be finalized within the year,"
he added.
Thrift and rural banks are already allowed to sell micro-insurance
products through its branches, as long as there are no investment features.
These products have premiums ranging from P50 up to P500, while coverage
amounts up to a million pesos only.
In the banking system of other regions, bancassurance is widely
practiced without the exclusivity of a cross-selling regulation in place.
"When you enter a bank branch for example in Singapore or Hong Kong, you
can pick out brochures of insurance companies and make transactions over
the counter," one insurer said, adding that there may be three to five
insurers selling their wares at any given bank.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
By Ted P. Torres (The Philippine Star) | Updated March 22, 2013 - 12:00am
MANILA, Philippines - The cross-selling regulations of the Bangko
Sentral ng Pilipinas (BSP) is presently undergoing revisions.
According to BSP Deputy Governor Nestor Espenilla Jr., specific
proposals are already in draft form and that these are being distributed
for comments with the different institutions involved.
"We already have specific proposals, and that it is just undergoing
final legal review for the BSP," Espenilla said.
Espenilla said they are consulting with banks and other interested
parties. "I assure that it will be responsive to what the bankers are
saying," he said.
The present practice of cross-selling under BSP regulations allows
universal banks or expanded commercial banks to offer their products and
services to affiliate entities, such as life insurance firms.
BSP Circular 357 issued in 2002 also states that for an insurer to be
classified as an affiliate, the bank must own at least five percent
equity of the said entity.
The possible amendments to the circular will open the practice of
cross-selling among commercial and thrift banks.
Espenilla said that in the case of life insurance, the new proposal may
allow the sale of life insurance but limited to traditional or pure
protection insurance products. "It should be finalized within the year,"
he added.
Thrift and rural banks are already allowed to sell micro-insurance
products through its branches, as long as there are no investment features.
These products have premiums ranging from P50 up to P500, while coverage
amounts up to a million pesos only.
In the banking system of other regions, bancassurance is widely
practiced without the exclusivity of a cross-selling regulation in place.
"When you enter a bank branch for example in Singapore or Hong Kong, you
can pick out brochures of insurance companies and make transactions over
the counter," one insurer said, adding that there may be three to five
insurers selling their wares at any given bank.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Thursday, March 21, 2013
Peso to go back to P41:$1 territory in April, May
Peso to go back to P41:$1 territory in April, May
by Kathleen A. Martin, ABS-CBNnews.com
Posted at 03/20/2013 3:59 PM | Updated as of 03/20/2013 10:32 PM
MANILA, Philippines -- The Philippine peso is expected to average within
the P41 to the greenback in April and May, slightly depreciating from
the previous months as the central bank implements more actions curbing
the currency's appreciation.
"BSP (Bangko Sentral ng Pilipinas) and other government officials have
become wary of the peso appreciation and appear ready to apply stronger
means to curb the negative impact of large portfolio capital inflows,"
the First Metro Investment Corp. and University of Asia and the Pacific
said in the latest issue of Market Call.
"Due to BSP and other government actions, we do not expect further
appreciation of the peso in Q2 (second quarter). Rather, it may actually
start off on a mild depreciation mode as foreign investors pull out
profits especially in Q2 to pay off their income taxes," FMIC and UA&P
stressed.
From an expected average of P40.96:$1 in March and an actual average of
P40.67:$1 in February, the peso is forecast to average P41.17 to a
dollar in April, and P41.67 against the greenback in May.
"While the peso may have an appreciation bias due to robust portfolio
investments inflows, we are expecting that the BSP will be more
aggressive to stem this appreciation," FMIC and UA&P said.
Last year, the peso has strengthened almost 7% against the dollar,
cutting revenues of the export industry and the business process
outsourcing sector, among others. The appreciation streak of the local
currency has also hurt families dependent on remittances from overseas
Filipino workers, thus, reducing their spending power.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
by Kathleen A. Martin, ABS-CBNnews.com
Posted at 03/20/2013 3:59 PM | Updated as of 03/20/2013 10:32 PM
MANILA, Philippines -- The Philippine peso is expected to average within
the P41 to the greenback in April and May, slightly depreciating from
the previous months as the central bank implements more actions curbing
the currency's appreciation.
"BSP (Bangko Sentral ng Pilipinas) and other government officials have
become wary of the peso appreciation and appear ready to apply stronger
means to curb the negative impact of large portfolio capital inflows,"
the First Metro Investment Corp. and University of Asia and the Pacific
said in the latest issue of Market Call.
"Due to BSP and other government actions, we do not expect further
appreciation of the peso in Q2 (second quarter). Rather, it may actually
start off on a mild depreciation mode as foreign investors pull out
profits especially in Q2 to pay off their income taxes," FMIC and UA&P
stressed.
From an expected average of P40.96:$1 in March and an actual average of
P40.67:$1 in February, the peso is forecast to average P41.17 to a
dollar in April, and P41.67 against the greenback in May.
"While the peso may have an appreciation bias due to robust portfolio
investments inflows, we are expecting that the BSP will be more
aggressive to stem this appreciation," FMIC and UA&P said.
Last year, the peso has strengthened almost 7% against the dollar,
cutting revenues of the export industry and the business process
outsourcing sector, among others. The appreciation streak of the local
currency has also hurt families dependent on remittances from overseas
Filipino workers, thus, reducing their spending power.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
MSMEs provide more employment – BSP
MSMEs provide more employment – BSP
Written by RAADEE S. SAUSA
The Bangko Sentral ng Pilipinas (BSP) cited that the micro, small and
medium enterprises (MSMEs) provides great employment opportunities.
"And if we are to raise our national economic vantage point and take
advantage of the momentum coming into 2013, thrift banks need to
consider lending more to this economic segment [MSMEs]," BSP Governor
Amando Tetangco Jr. said on Wednesday during the Chamber of Thrift Banks
(CTB) Annual Convention.
"I say this because MSMEs provide great employment opportunities. A
healthier MSME sector will help ensure our economic growth is
broad-based and inclusive," he added.
Tetangco said that thrift banks, however, must not just lend more in
terms of nominal amounts. The challenge to the industry really is to
ensure that such lending continuously creates further opportunities.
Meanwhile, Tetangco challenge the CTB to further improve credit
underwriting standards for real estate and consumer loans and raise
vantage point by looking at its processes with the lens of financial
stability; interact with its clients and raise vantage point by
enhancing practices with the heart of consumer protection and financial
education, and increase lending to MSMEs and raise vantage point by
lending with the mind to create greater value.
"But much more can be done," he said.
"It is never an easy task to move forward . . . but rest assured that
the BSP will be with you as we take that journey together into broader
horizons," Tetangco said.
Written by RAADEE S. SAUSA
The Bangko Sentral ng Pilipinas (BSP) cited that the micro, small and
medium enterprises (MSMEs) provides great employment opportunities.
"And if we are to raise our national economic vantage point and take
advantage of the momentum coming into 2013, thrift banks need to
consider lending more to this economic segment [MSMEs]," BSP Governor
Amando Tetangco Jr. said on Wednesday during the Chamber of Thrift Banks
(CTB) Annual Convention.
"I say this because MSMEs provide great employment opportunities. A
healthier MSME sector will help ensure our economic growth is
broad-based and inclusive," he added.
Tetangco said that thrift banks, however, must not just lend more in
terms of nominal amounts. The challenge to the industry really is to
ensure that such lending continuously creates further opportunities.
Meanwhile, Tetangco challenge the CTB to further improve credit
underwriting standards for real estate and consumer loans and raise
vantage point by looking at its processes with the lens of financial
stability; interact with its clients and raise vantage point by
enhancing practices with the heart of consumer protection and financial
education, and increase lending to MSMEs and raise vantage point by
lending with the mind to create greater value.
"But much more can be done," he said.
"It is never an easy task to move forward . . . but rest assured that
the BSP will be with you as we take that journey together into broader
horizons," Tetangco said.
Thrift banks in sweet spot
Thrift banks in sweet spot
THE THRIFT banking industry has the momentum to grow rapidly in 2013,
especially if it can take advantage of opportunities in the consumer
lending business, officials said.
"We have entered 2013 from a position of strength, and with some
momentum. The onus is on you, on us, to make the most of this advantage,
to bring you forward in your chosen objective," Bangko Sentral ng
Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said at the Chamber of
Thrift Banks national convention yesterday.
The industry saw its total assets grow by a tenth last year to P666.17
billion from P607.43 billion in 2011, he pointed out. It amassed P529.80
billion in deposits and issued P449.27 billion in loans.
At this starting point, thrift banks can readily "broaden their
horizons," he added.
This is even more important this year given the low interest rate
environment, Bank of the Philippine Islands President and Chief
Executive Officer Aurelio R. Montinola III said at the same event.
"The already low interest rates are becoming even lower. We have to
accept that this is the long-term scenario, the new normal," he explained.
With interest rates down, it will be harder for banks to raise deposits
and costlier to maintain branch networks, he noted. On the upside, lower
interest rates mean less non-performing loans.
NICHE LENDING
To grow consumer lending -- which accounts for bulk of the thrift
business -- Mr. Montinola urged banks to find a niche in the industry.
"Focus on a few good areas or else you run the risk of being too similar
to major commercial banks, which offer everything," he said.
"Of the big three -- auto, housing and SME (small and medium enterprise)
loans -- be great in one or two areas for a better chance of standing
out and getting good and good-paying customers."
This specialization should be translated into the product design, the
customer experience and the sales strategies of the bank, he said.
Consumers are less brand-loyal now, so the performance of the bank must
stick.
Moreover, Mr. Tetangco said, thrift banks must ensure that consumers are
always protected.
"The BSP is in the early stages of formalizing specific standards for
consumer protection, including how banks should handle consumer
complaints," he revealed.
The regulator will issue standards on consumer protection, and banks
will be assessed on their implementation of the rules.
Consumer protection will be considered a core banking function, and the
bank's given score will be factored into the CAMELS framework (capital,
asset quality, management, earnings, liquidity and sensitivity to market
risk) -- the broad criteria used by the BSP to check financial health.
CROSS-SELLING
Another driver for the growth of the thrift banking industry will be the
cross-selling of products.
Mr. Montinola said, "Banking is becoming a business of scale. For thrift
banks, bigger banks can be value-added product providers."
It will be difficult, costly and time-consuming for a thrift bank to
establish a bancassurance or asset management arm, he stressed. Instead,
it can offer the products of larger banks in its branches, in exchange
for a fee.
BSP Deputy Governor Nestor A. Espenilla, Jr., for his part, assured that
the rules for cross-selling have already been drafted. They will be
released once they clear a final legal review.
The BSP aims to let banks sell each other's simple savings and insurance
products within the year, in order to provide more appropriate offerings
for consumers.
Mr. Montinola said, "Others say this is cannibalization, but isn't this
a risk we face every day anyway?"
SME LENDING
Lastly, thrift banks should consider lending more to the small businesses.
According to the BSP chief: "SMEs provide great employment
opportunities. A healthier SME sector will help ensure our economic
growth is broad-based and inclusive."
The industry is "well-equipped" to support the SME sector, he noted,
which presents a large, untapped market for banks.
"For the thrift banking industry, the growth trajectory that many are
anticipating suggests even better times ahead. It is therefore in our
collective interest... to agree on a common vision where thrift banks
have a definitive role to play," Mr. Tetangco said.
- See more at:
http://www.bworldonline.com/content.php?section=Finance&title=Thrift-banks-in-sweet-spot&id=67548#sthash.RVltDlvZ.dpuf
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
THE THRIFT banking industry has the momentum to grow rapidly in 2013,
especially if it can take advantage of opportunities in the consumer
lending business, officials said.
"We have entered 2013 from a position of strength, and with some
momentum. The onus is on you, on us, to make the most of this advantage,
to bring you forward in your chosen objective," Bangko Sentral ng
Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said at the Chamber of
Thrift Banks national convention yesterday.
The industry saw its total assets grow by a tenth last year to P666.17
billion from P607.43 billion in 2011, he pointed out. It amassed P529.80
billion in deposits and issued P449.27 billion in loans.
At this starting point, thrift banks can readily "broaden their
horizons," he added.
This is even more important this year given the low interest rate
environment, Bank of the Philippine Islands President and Chief
Executive Officer Aurelio R. Montinola III said at the same event.
"The already low interest rates are becoming even lower. We have to
accept that this is the long-term scenario, the new normal," he explained.
With interest rates down, it will be harder for banks to raise deposits
and costlier to maintain branch networks, he noted. On the upside, lower
interest rates mean less non-performing loans.
NICHE LENDING
To grow consumer lending -- which accounts for bulk of the thrift
business -- Mr. Montinola urged banks to find a niche in the industry.
"Focus on a few good areas or else you run the risk of being too similar
to major commercial banks, which offer everything," he said.
"Of the big three -- auto, housing and SME (small and medium enterprise)
loans -- be great in one or two areas for a better chance of standing
out and getting good and good-paying customers."
This specialization should be translated into the product design, the
customer experience and the sales strategies of the bank, he said.
Consumers are less brand-loyal now, so the performance of the bank must
stick.
Moreover, Mr. Tetangco said, thrift banks must ensure that consumers are
always protected.
"The BSP is in the early stages of formalizing specific standards for
consumer protection, including how banks should handle consumer
complaints," he revealed.
The regulator will issue standards on consumer protection, and banks
will be assessed on their implementation of the rules.
Consumer protection will be considered a core banking function, and the
bank's given score will be factored into the CAMELS framework (capital,
asset quality, management, earnings, liquidity and sensitivity to market
risk) -- the broad criteria used by the BSP to check financial health.
CROSS-SELLING
Another driver for the growth of the thrift banking industry will be the
cross-selling of products.
Mr. Montinola said, "Banking is becoming a business of scale. For thrift
banks, bigger banks can be value-added product providers."
It will be difficult, costly and time-consuming for a thrift bank to
establish a bancassurance or asset management arm, he stressed. Instead,
it can offer the products of larger banks in its branches, in exchange
for a fee.
BSP Deputy Governor Nestor A. Espenilla, Jr., for his part, assured that
the rules for cross-selling have already been drafted. They will be
released once they clear a final legal review.
The BSP aims to let banks sell each other's simple savings and insurance
products within the year, in order to provide more appropriate offerings
for consumers.
Mr. Montinola said, "Others say this is cannibalization, but isn't this
a risk we face every day anyway?"
SME LENDING
Lastly, thrift banks should consider lending more to the small businesses.
According to the BSP chief: "SMEs provide great employment
opportunities. A healthier SME sector will help ensure our economic
growth is broad-based and inclusive."
The industry is "well-equipped" to support the SME sector, he noted,
which presents a large, untapped market for banks.
"For the thrift banking industry, the growth trajectory that many are
anticipating suggests even better times ahead. It is therefore in our
collective interest... to agree on a common vision where thrift banks
have a definitive role to play," Mr. Tetangco said.
- See more at:
http://www.bworldonline.com/content.php?section=Finance&title=Thrift-banks-in-sweet-spot&id=67548#sthash.RVltDlvZ.dpuf
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Wednesday, March 20, 2013
What Do Toilets Have to Do With Microfinance?
What Do Toilets Have to Do With Microfinance?
March 19, 2013 in Center for Financial Inclusion,
Posted by Danielle Piskadlo, Senior Program Specialist, CFI
Biogas toilet made possible through WaterCredit
An estimated 2.6 billion people in the world lack access to basic sanitation. This reality is a root cause of much sickness and disease throughout the developing world. Like many things, water and sanitation problems disproportionately affect women and children. According to data from WHO/UNICEF, women globally spend an estimated 200 million hours each day collecting water, a child dies every 20 seconds from a water-related illness, and girls often do not attend school during menstruation, or drop out at puberty, due to the lack of clean and private sanitation facilities.
I had never thought much about how toilets might relate to microfinance but lately water, sanitation, and toilets seem to be all I read about.
I was vaguely aware of the efforts of WaterCredit.org to put microfinance tools to work in the water and sanitation sector by connecting MFIs with communities in need of clean water and toilets. I also knew a little bit about Peepoople, the makers of Peepoo, a personal, single-use, self-sanitizing, fully biodegradable toilet that after use, turns into fertilizer that can improve livelihoods and increase food security. This product is not only improving health and livelihood but has also created a series of work opportunities, both formal and informal.
The pace increased in February, when I heard toilets mentioned in the financial inclusion context three times – all in separate places. First, Jacqueline Novogratz, a keynote speaker at the recent Harvard Social Enterprise Conference, described an Acumen Fund investment in Ecotact, a Nairobi-based company that leads the Ikotoilet project, building and operating high-quality, public toilet and shower facilities, which customers pay five shillings (US$0.06) to use.
Through Ikotoilets, Ecotact is growing inclusive markets and positively impacting financial inclusion in two ways. One, by creating facilities known as “Toilet Malls” – kiosks with toilets that also serve as retail outlets for basics such as airtime, snacks, and shoe shine services. Ecotact hires physically challenged staff to operate and clean the units after each use. According to Wanjiru, a physically challenged Ikotoilet employee, “most people believe that disabled people are beggars. In cases where you are competent as a professional, you really have to prove yourself before you are employed. It was a struggle for me to put food on the table before I got a job as a cleaner in this toilet.”
Shortly after the Harvard conference, the Microfinance Gateway published a report called Savings, Loans…and Toilets about Grameen Koota in India and its efforts to meet customers’ needs that go beyond the boundaries of a typical financial institution. According to the article, “that’s why, when customers requested it, Grameen Koota focused on the water and sanitation needs of their clients, including…toilets.”
Finally, I read The Economist article “Bit Loans,” which describes how microfinance institutions are going mobile, including arming loan officers with tablet computers. Among other uses, these devices are taken into a slum in Nairobi to check with owners of portable toilets that charge per use and sell the waste to Sanergy, which converts it into fertilizer and electricity. Loan officers also use these tablets to estimate how many people live in a toilet’s vicinity – information that is then used to calculate future revenue for toilet providers.
Image Credit: WaterCredit
-- ----------------------------------------------------------- CARLOS ANI - Consultant Chairman of the Board - SEEDFINANCE Corporation Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031 Emails: carlosani@gmail.com , carlosani@seedfinance.net Landline Phone: +63495010127 (PLDT) Cellphone Numbers: +63908-1737072 (Smart) My Websites: CARLOSANI.COM - http://www.carlosani.com SEEDFINANCE Corporation - http://www.seedfinance.net DEVJOBS - http://www.devjobsmail.com PHILDEVFINANCE - http://phildevfinance.posterous.com http://phildevfinance.blogspot.com Family website - http://www.anifamily.net Skype name: carlosaniph ----------------------------------------------------------
Tuesday, March 19, 2013
Tax Audits to be prioritized for those paying less than P200K in taxes
Tax Audits to be prioritized for those paying less than P200K in taxes
SELF-EMPLOYED individuals, small business owners and professionals
(SEPs) who pay less than P200,000 in income taxes annually will be
prioritized for audit by the Bureau of Internal Revenue as the
government seeks to improve its finances.
"I signed a revenue memorandum circular, basically stating that although
all taxpayers will be audited, the priority that will be audited are
those business taxpayers whose average payment are below P200,000," said
Kim S. Jacinto-Henares, Bureau of Internal Revenue (BIR) commissioner,
in a briefing yesterday.
"We'll look at those who pay less than that and whose growth rate in
their income tax payment is below 35% and gross revenues reported did
not go up by more than 40%," she added.
The circular, once released, will be effective "immediately."
The BIR chief said this was part of the government's drive to widen the
collection base and increase the overall tax effort.
"Our data shows that about 1.8 million are registered as SEPs but only
402,934 of those filed returns, paying an average of P33,441 annually.
We want to find those missing 1.4 million registered as SEPs," Ms.
Jacinto-Henares said.
She added that 1.8 million was also a "conservative" number.
"PRC (Professional Regulatory Commission) registrations show two million
active professionals, while in the DTI's (Department of Trade and
Industry) database, there are 816,759 registered micro, small and medium
enterprises," she noted.
Apart from accounting for all registered SEPs, average payments must
also be increased, Finance Secretary Cesar V. Purisima said.
"The current average annual payment of P33,441 implies a monthly income
of P23,647. This is unbelievable considering the lifestyles of most
entrepreneurs and professionals. It is reasonable to expect the average
to reach P200,000," he said.
The Finance chief said visits to the BIR's revenue district offices
revealed extremely low tax payments.
"There were doctors in Pangasinan that paid only P800 for the year,
lawyers in Mindoro who paid only P121, a radio and TV practitioner in
Quezon City who paid only P400 and a businessman in Cagayan de Oro who
paid only P1,000," he said.
"This implies that these professionals earn even less than minimum wage
earners. These numbers are ridiculous."
He said the BIR was also looking into benchmarking average tax payments
by profession and industry.
Ms. Jacinto-Henares added that aside from ongoing initiatives to improve
operational efficiency, the BIR will also use existing information from
various organizations in order to effectively monitor taxpayers, such as
looking into business permits issued at the local level and looking into
memberships in professional organizations.
BIR data showed that total individual tax collections amounted to P223
billion last year, 14.95% higher than the P194 billion recorded in 2011.
Of this, P181.7 billion or 81.5% came from taxes withheld on wages of
compensation income earners. In comparison, SEPs only accounted for
P15.1 billion or 6.8%.
The ratio of payments made by the sector to the bureau's total tax take
from individuals, the BIR noted, declined from 8.4% in 2010 and 6.9% in
2011. Collections from SEPs currently only account for 0.13% of the
country's gross domestic product (GDP), Mr. Purisima also said.
"We want to increase this to 2.1% of GDP or P360 billion by 2016," the
Finance chief said.
"This will help us in achieving our total tax effort ratio goal of 16%
of GDP by 2016."
- See more at:
http://www.bworldonline.com/content.php?section=TopStory&title=Audits-to-be-prioritized-for-those-paying-less-than-P200K-in-taxes&id=67457#sthash.LUAvqN2n.dpuf
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
SELF-EMPLOYED individuals, small business owners and professionals
(SEPs) who pay less than P200,000 in income taxes annually will be
prioritized for audit by the Bureau of Internal Revenue as the
government seeks to improve its finances.
"I signed a revenue memorandum circular, basically stating that although
all taxpayers will be audited, the priority that will be audited are
those business taxpayers whose average payment are below P200,000," said
Kim S. Jacinto-Henares, Bureau of Internal Revenue (BIR) commissioner,
in a briefing yesterday.
"We'll look at those who pay less than that and whose growth rate in
their income tax payment is below 35% and gross revenues reported did
not go up by more than 40%," she added.
The circular, once released, will be effective "immediately."
The BIR chief said this was part of the government's drive to widen the
collection base and increase the overall tax effort.
"Our data shows that about 1.8 million are registered as SEPs but only
402,934 of those filed returns, paying an average of P33,441 annually.
We want to find those missing 1.4 million registered as SEPs," Ms.
Jacinto-Henares said.
She added that 1.8 million was also a "conservative" number.
"PRC (Professional Regulatory Commission) registrations show two million
active professionals, while in the DTI's (Department of Trade and
Industry) database, there are 816,759 registered micro, small and medium
enterprises," she noted.
Apart from accounting for all registered SEPs, average payments must
also be increased, Finance Secretary Cesar V. Purisima said.
"The current average annual payment of P33,441 implies a monthly income
of P23,647. This is unbelievable considering the lifestyles of most
entrepreneurs and professionals. It is reasonable to expect the average
to reach P200,000," he said.
The Finance chief said visits to the BIR's revenue district offices
revealed extremely low tax payments.
"There were doctors in Pangasinan that paid only P800 for the year,
lawyers in Mindoro who paid only P121, a radio and TV practitioner in
Quezon City who paid only P400 and a businessman in Cagayan de Oro who
paid only P1,000," he said.
"This implies that these professionals earn even less than minimum wage
earners. These numbers are ridiculous."
He said the BIR was also looking into benchmarking average tax payments
by profession and industry.
Ms. Jacinto-Henares added that aside from ongoing initiatives to improve
operational efficiency, the BIR will also use existing information from
various organizations in order to effectively monitor taxpayers, such as
looking into business permits issued at the local level and looking into
memberships in professional organizations.
BIR data showed that total individual tax collections amounted to P223
billion last year, 14.95% higher than the P194 billion recorded in 2011.
Of this, P181.7 billion or 81.5% came from taxes withheld on wages of
compensation income earners. In comparison, SEPs only accounted for
P15.1 billion or 6.8%.
The ratio of payments made by the sector to the bureau's total tax take
from individuals, the BIR noted, declined from 8.4% in 2010 and 6.9% in
2011. Collections from SEPs currently only account for 0.13% of the
country's gross domestic product (GDP), Mr. Purisima also said.
"We want to increase this to 2.1% of GDP or P360 billion by 2016," the
Finance chief said.
"This will help us in achieving our total tax effort ratio goal of 16%
of GDP by 2016."
- See more at:
http://www.bworldonline.com/content.php?section=TopStory&title=Audits-to-be-prioritized-for-those-paying-less-than-P200K-in-taxes&id=67457#sthash.LUAvqN2n.dpuf
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Wednesday, March 13, 2013
ADB: In Asia, wealth buys access to clean water
ADB: In Asia, wealth buys access to clean water
(philstar.com) | Updated March 13, 2013 - 8:30pm
MANILA, Philippines (AP) — Ninety-one percent of people living in Asia
have improved access to clean water, a remarkable achievement over the
last two decades in the world's most populous region. But its richest
countries and wealthiest citizens likely have better water supplies and
governments better prepared for natural disasters.
The assessments made by the Asian Development Bank in a study published
Wednesday say countries in the region could be disproportionally
affected by the potential impact of climate change if they did not
rethink how they manage their water resources. Nearly half of the deaths
caused by water-related disasters and 90 percent of people affected by
such disasters from 1980 to 2006 lived in Asia, the report said.
Developed nations like Australia, Singapore, New Zealand and Japan top
the list of nations best prepared to cope with floods, droughts,
hurricanes, storm surges and landslides, while Nepal, Laos, Cambodia,
Tajikistan, the Pacific nation of Vanuatu and Bangladesh are the least
prepared.
No country in the Asia-Pacific region is a model for its management of
water services and resources, according to the Manila-based lending and
development institution, whose aim is cutting poverty. Thirty-eight
developing countries have low levels of water security or have barely
begun to improve, and only 11 have set up infrastructure and management
systems.
"While the Asia-Pacific region has become an economic powerhouse, it is
alarming that no developing country in the region can be considered
'water-secure,'" said ADB Vice President Bindu Lohani.
Nearly 80 percent of Asia's rivers are in poor health. Urban populations
are on the rise and so is pollution, while food and energy needs are
putting more pressure on the water resources.
Unless these competing needs are balanced, "water security will remain
elusive, undermining development gains and the quality of life for
billions of people in the region, especially the poor," said Ravi
Narayanan, vice chair of the Asia-Pacific Water Forum governing council.
The good news is that the proportion of the region's population with
access to drinking water has increased from 74 percent to 91 percent
between 1990 and 2010. Progress has been made in all subregions expect
the Pacific, where access remains low at 54 percent.
However, access to reliable tap water supply paints a different picture.
Although more than 900 million people gained access to piped water, more
than 65 percent of the region's population does not have what should be
considered a secure household supply.
Most cities in Asia, which accounts for half of the world's 20
megacities, have extensive infrastructure for domestic water treatment
and supply, although piped systems often stop short of individual
households, and potable water services are not maintained full-time at
the point of delivery, the ADB said.
For instance, some cities in China and South Korea provide
round-the-clock water service, but in many other cities tap water is
only available for limited hours. In Jakarta, water is available in most
areas for about 18 hours each day, and in Chennai, India, water is
available for an average of only about four hours each day.
Then there is the question of health. About 88 percent of all diarrhea
cases are attributed to lack of adequate access to water and sanitation.
Although the percentage of people with access to improved sanitation
rose from 36 percent in 1990 to 58 percent in 2010, 1.74 billion people
in Asia and the Pacific continue to live without access to improved
sanitation. More than 792 million people still suffer the indignity of
practicing open defecation, and more than 631 million of these people
live in rural South Asia.
There are bright spots, with Southeast Asia making rapid progress,
expanding coverage by 23 percent between 1990 and 2010, and East Asia by
35 percent.
The gap between rich and poor is a big factor when it comes to water
access and management, the report said. In South Asia, led by
Bangladesh, it is estimated that up to 96 percent the rural rich have
access to sanitation, compared to only 2 percent to 4 percent of the
rural poor. There has been little progress on improving access to
sanitation in the Pacific islands, the ADB said.
"In Asia and the Pacific, the correlation between income and access is
unequivocal —the wealthy have better access than the poor to water
supply and sanitation. In addition, the disparity is growing, especially
in the burgeoning smaller cities across the region," the ADB said.
Differences between richer and poorer communities amount to 96 percent
in Nepal and 92 percent in Cambodia, India, and Pakistan, it said.
In India and the Philippines, another study by the U.N. Economic and
Social Commission for Asia and the Pacific found that public utilities
responsible for providing water and sanitation services "lack capacity
in all aspects of sustainability, including effective functioning,
financing, and demand responsiveness."
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
(philstar.com) | Updated March 13, 2013 - 8:30pm
MANILA, Philippines (AP) — Ninety-one percent of people living in Asia
have improved access to clean water, a remarkable achievement over the
last two decades in the world's most populous region. But its richest
countries and wealthiest citizens likely have better water supplies and
governments better prepared for natural disasters.
The assessments made by the Asian Development Bank in a study published
Wednesday say countries in the region could be disproportionally
affected by the potential impact of climate change if they did not
rethink how they manage their water resources. Nearly half of the deaths
caused by water-related disasters and 90 percent of people affected by
such disasters from 1980 to 2006 lived in Asia, the report said.
Developed nations like Australia, Singapore, New Zealand and Japan top
the list of nations best prepared to cope with floods, droughts,
hurricanes, storm surges and landslides, while Nepal, Laos, Cambodia,
Tajikistan, the Pacific nation of Vanuatu and Bangladesh are the least
prepared.
No country in the Asia-Pacific region is a model for its management of
water services and resources, according to the Manila-based lending and
development institution, whose aim is cutting poverty. Thirty-eight
developing countries have low levels of water security or have barely
begun to improve, and only 11 have set up infrastructure and management
systems.
"While the Asia-Pacific region has become an economic powerhouse, it is
alarming that no developing country in the region can be considered
'water-secure,'" said ADB Vice President Bindu Lohani.
Nearly 80 percent of Asia's rivers are in poor health. Urban populations
are on the rise and so is pollution, while food and energy needs are
putting more pressure on the water resources.
Unless these competing needs are balanced, "water security will remain
elusive, undermining development gains and the quality of life for
billions of people in the region, especially the poor," said Ravi
Narayanan, vice chair of the Asia-Pacific Water Forum governing council.
The good news is that the proportion of the region's population with
access to drinking water has increased from 74 percent to 91 percent
between 1990 and 2010. Progress has been made in all subregions expect
the Pacific, where access remains low at 54 percent.
However, access to reliable tap water supply paints a different picture.
Although more than 900 million people gained access to piped water, more
than 65 percent of the region's population does not have what should be
considered a secure household supply.
Most cities in Asia, which accounts for half of the world's 20
megacities, have extensive infrastructure for domestic water treatment
and supply, although piped systems often stop short of individual
households, and potable water services are not maintained full-time at
the point of delivery, the ADB said.
For instance, some cities in China and South Korea provide
round-the-clock water service, but in many other cities tap water is
only available for limited hours. In Jakarta, water is available in most
areas for about 18 hours each day, and in Chennai, India, water is
available for an average of only about four hours each day.
Then there is the question of health. About 88 percent of all diarrhea
cases are attributed to lack of adequate access to water and sanitation.
Although the percentage of people with access to improved sanitation
rose from 36 percent in 1990 to 58 percent in 2010, 1.74 billion people
in Asia and the Pacific continue to live without access to improved
sanitation. More than 792 million people still suffer the indignity of
practicing open defecation, and more than 631 million of these people
live in rural South Asia.
There are bright spots, with Southeast Asia making rapid progress,
expanding coverage by 23 percent between 1990 and 2010, and East Asia by
35 percent.
The gap between rich and poor is a big factor when it comes to water
access and management, the report said. In South Asia, led by
Bangladesh, it is estimated that up to 96 percent the rural rich have
access to sanitation, compared to only 2 percent to 4 percent of the
rural poor. There has been little progress on improving access to
sanitation in the Pacific islands, the ADB said.
"In Asia and the Pacific, the correlation between income and access is
unequivocal —the wealthy have better access than the poor to water
supply and sanitation. In addition, the disparity is growing, especially
in the burgeoning smaller cities across the region," the ADB said.
Differences between richer and poorer communities amount to 96 percent
in Nepal and 92 percent in Cambodia, India, and Pakistan, it said.
In India and the Philippines, another study by the U.N. Economic and
Social Commission for Asia and the Pacific found that public utilities
responsible for providing water and sanitation services "lack capacity
in all aspects of sustainability, including effective functioning,
financing, and demand responsiveness."
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Tuesday, March 12, 2013
Landbank life extended
Landbank life extended
By Zinnia B. dela Peña (The Philippine Star)
Updated March 12, 2013 - 12:00am
MANILA, Philippines - President Aquino signed into law Republic Act
10374, an Act extending the life of the Land Bank of the Philippines
(Landbank), otherwise known as the Agricultural Land Reform Code, for
another 50 years.
Landbank's corporate life was extended for a period of 50 years from the
expiration of its or its original term of Aug. 8, 2013, renewable for
another 50 years.
Landbank, the country's fourth largest bank in terms of assets, funds
the country's agrarian reform program and serves as the depository bank
of government entities and agencies. It also collects taxes and fees for
government agencies.
It also the main distributor of funds under the government's conditional
cash transfer program.
Landbank officials said the extension would provide the state-run bank
flexibility to sign long-term loans or issue long-term bonds and provide
continued development financing to farms, microenterprises, smalland
medium enterprises, banks and local government units.
Last year, Landbank released P39.9 billion in funds to support the
farming and fisheries sector benefiting 772,892 small farmers and
fisherfoll.
"Landbank remains aggressive in channeling assistance to the farming and
fisheries sector as we aim to further strengthen and sustain their
viability to accelerate the development of rural economies," said
Landbank president and CEO Gilda E. Pico.
Of the amount, P39.6 billion was released to small farmers and P323
million to fisherfolk. These loan releases were channeled through 888
farmers and fisherfolk cooperatives, 313 countryside financial
institutions, and 160 irrigators' associations.
By agricultural activity, loans for crop production reached P18.4
billion in 2012 while loans for livestock projects reached P3.8 billion.
Other economic activities financed by Landbank last year include
wholesale and retail trade, manufacturing, agri-processing and fishery.
Regions with the highest loan releases to small farmers and fisherfolk
are Central Luzon with P9.9 billion followed by Cagayan Valley with P5.1
billion, and Central Visayas with P4.9 billion.
Meanwhile, Landbank''s loans to its priority sectors amounted to P205.3
billion in 2012, 19 percent higher than the previous year's P172.1
billion. of the total, 75 percent of P205.3 billion made up Landbank's
gross loan portfolio amounting to P273.8 billion.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
By Zinnia B. dela Peña (The Philippine Star)
Updated March 12, 2013 - 12:00am
MANILA, Philippines - President Aquino signed into law Republic Act
10374, an Act extending the life of the Land Bank of the Philippines
(Landbank), otherwise known as the Agricultural Land Reform Code, for
another 50 years.
Landbank's corporate life was extended for a period of 50 years from the
expiration of its or its original term of Aug. 8, 2013, renewable for
another 50 years.
Landbank, the country's fourth largest bank in terms of assets, funds
the country's agrarian reform program and serves as the depository bank
of government entities and agencies. It also collects taxes and fees for
government agencies.
It also the main distributor of funds under the government's conditional
cash transfer program.
Landbank officials said the extension would provide the state-run bank
flexibility to sign long-term loans or issue long-term bonds and provide
continued development financing to farms, microenterprises, smalland
medium enterprises, banks and local government units.
Last year, Landbank released P39.9 billion in funds to support the
farming and fisheries sector benefiting 772,892 small farmers and
fisherfoll.
"Landbank remains aggressive in channeling assistance to the farming and
fisheries sector as we aim to further strengthen and sustain their
viability to accelerate the development of rural economies," said
Landbank president and CEO Gilda E. Pico.
Of the amount, P39.6 billion was released to small farmers and P323
million to fisherfolk. These loan releases were channeled through 888
farmers and fisherfolk cooperatives, 313 countryside financial
institutions, and 160 irrigators' associations.
By agricultural activity, loans for crop production reached P18.4
billion in 2012 while loans for livestock projects reached P3.8 billion.
Other economic activities financed by Landbank last year include
wholesale and retail trade, manufacturing, agri-processing and fishery.
Regions with the highest loan releases to small farmers and fisherfolk
are Central Luzon with P9.9 billion followed by Cagayan Valley with P5.1
billion, and Central Visayas with P4.9 billion.
Meanwhile, Landbank''s loans to its priority sectors amounted to P205.3
billion in 2012, 19 percent higher than the previous year's P172.1
billion. of the total, 75 percent of P205.3 billion made up Landbank's
gross loan portfolio amounting to P273.8 billion.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Monday, March 11, 2013
BPI pushes for agribusiness devt in Luzon, Mindanao
BPI pushes for agribusiness devt in Luzon, Mindanao
Published on Thursday, 07 March 2013 19:38
Written by Marvyn N. Benaning / Contributor
BANK of the Philippine Islands (BPI) is betting heavily on agriculture
this year and increasing its involvement in the sector by launching a
loan program designed to benefit livestock raisers in Central Luzon, as
well as expanding business corridors in Mindanao like the cities of
Cagayan de Oro in Misamis Oriental province, General Santos in South
Cotabato province and Davao.
Through its BPI Agribusiness Solutions, the bank has created a program
that would support poultry raisers, hog farmers and entrepreneurs and
small companies engaged in cattle fattening.
For starters, BPI was to launch BPI Agribusiness Solutions at the
Holiday Inn Clark hotel in Pampanga province's Clark ecozone on
Thursday, with BPI Executive Vice President and Corporate Banking Group
head Alfonso Salcedo Jr. expected to hold a media briefing and present
an overview of the program, along with BPI Senior Vice President Budong
SL. Castro and BPI Assistant Vice President Pearl Padilla.
Agriculture Undersecretary for Administration and Finance Antonio Fleta
was also expected to deliver a message on behalf of Agriculture
Secretary Proceso J. Alcala.
Andrew Bateson of Genus Pig Improvement Co. (Genus PIC) was to present a
paper titled "Genus PIC: Helping Nourish the World" followed by Vincent
Borromeo, who was scheduled to discuss "World-class Pig Production in
the Philippines."
The bank was also set to tackle "BPI Sustainable Energy Finance," which
was expected to show that agribusiness companies could use farm waste as
an energy source and thus reduce their dependence on fossil fuels.
BPI Vice President JM Sangco, also head of North Luzon Provincial
Lending, was to deliver the closing remarks.
Technical lectures on livestock production and poultry management would
cap the event.
Highly important
"THE agriculture sector is highly important for the Philippines as it
promotes food security. Agriculture promises to be the key to alleviate
poverty among millions of Filipinos who depend on farming and
livestock-raising. A stronger agriculture sector is needed to sustain
growth and food sufficiency," BPI said.
The bank stressed that a strong participation in agribusiness
development is part of its corporate social responsibility.
What compelled BPI to launch its agribusiness campaign this year is its
strong belief that the Philippines will be a big player in the livestock
industry in Southeast Asia. The bank noted that the country is free of
the food-and-mouth disease that has been the bane of cattle raisers in
the region.
Moreover, the Philippine poultry industry has been free from the
bird-flu virus that has decimated the stocks of chicken and duck raisers
in mainland Asia.
BPI also said agriculture has contributed 12.3 percent or P11.9 billion
of the country's gross domestic product in 2011. The labor force in
agriculture is 13 million, or 35 percent out of the total labor force of
37 million.
"BPI Agribusiness Solutions currently lends to piggery, poultry and
other agri-related businesses like fish production, fruits, vegetable
and crop production, post-harvest operations and food processing,
agricultural trading and sustainable/renewable-energy financing," the
bank said.
"Considering that both pork and poultry products are top staple foods
after rice and fish, there is a projected 10-percent increase in demand
for pork and about a 4-percent increase for chicken in 2013," it added.
"Currently, imports supply 153,000 metric tons [MT] of pork [6.82
percent of total consumption] and 179,000 MT for chicken [10.86 percent
of total consumption]. It is in these two big windows of opportunity
that BPI has decided to go big in 2013," the lender said.
Two agriproducts
FOR this year, BPI will unveil two agriproducts. The first, "BPI
Agribusiness Solutions Commercial Hog Breeding and Fattening," involves
the partnership between BPI and the Pig Improvement Co. (PIC) as the
technology provider and breed supplier for prospective clients. The PIC
targets to expand its sow level from 120,000 to 180,000, a 60,000
sow-level increase representing a 30-percent share of the total sow
level population.
The second, "BPI Agribusiness Solutions Poultry Contract
Growing/Commercial Broiler Operations," entails financing
qualified/prospective poultry contract growers of San Miguel Foods Inc.
(SMFI), which is bidding to increase its bird population by 5 million in
2013. Other integrators such as Bounty Fresh and other commercial
poultry integrators will also be tapped, depending on their expansion plans.
BPI said it is venturing into agriculture in consonance with the
Agri-Agra Law, which mandates banks to apportion 20 percent of its total
loan portfolio for agri-agra loans.
"If banks are unable to meet this ratio, they will be penalized by the
Bangko Sentral ng Pilipinas. BPI, like all other major banks, gets
penalized every now and then. BPI would therefore like to ensure full
compliance to this law from 2013 onward through the BPI Agribusiness
Solutions," the bank said.
BPI Agribusiness Solutions is concentrating on farm-growth corridors in
Central Luzon and the cities of Cagayan de Oro, General Santos and
Davao, and supporting existing clients of integrators like the PIC, the
SMC, Bounty Fresh and locals who want to expand their businesses,
whether they are BPI clients or not.
Middle-market companies, or those valued between P15 million and P100
million, are also qualified to benefit from BPI Agribusiness Solutions,
along with clients not engaged in agribusiness but are willing to
venture into it.
Existing BPI Preferred or High Value clients engaged in the agri/agra or
related businesses like piggery, poultry, feed mill, slaughter house,
chicken dressing, meat shop, rice mill, corn mill, fisheries, fruit,
vegetable and crop production, and agricultural trading are welcome to
join, according to the bank.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Published on Thursday, 07 March 2013 19:38
Written by Marvyn N. Benaning / Contributor
BANK of the Philippine Islands (BPI) is betting heavily on agriculture
this year and increasing its involvement in the sector by launching a
loan program designed to benefit livestock raisers in Central Luzon, as
well as expanding business corridors in Mindanao like the cities of
Cagayan de Oro in Misamis Oriental province, General Santos in South
Cotabato province and Davao.
Through its BPI Agribusiness Solutions, the bank has created a program
that would support poultry raisers, hog farmers and entrepreneurs and
small companies engaged in cattle fattening.
For starters, BPI was to launch BPI Agribusiness Solutions at the
Holiday Inn Clark hotel in Pampanga province's Clark ecozone on
Thursday, with BPI Executive Vice President and Corporate Banking Group
head Alfonso Salcedo Jr. expected to hold a media briefing and present
an overview of the program, along with BPI Senior Vice President Budong
SL. Castro and BPI Assistant Vice President Pearl Padilla.
Agriculture Undersecretary for Administration and Finance Antonio Fleta
was also expected to deliver a message on behalf of Agriculture
Secretary Proceso J. Alcala.
Andrew Bateson of Genus Pig Improvement Co. (Genus PIC) was to present a
paper titled "Genus PIC: Helping Nourish the World" followed by Vincent
Borromeo, who was scheduled to discuss "World-class Pig Production in
the Philippines."
The bank was also set to tackle "BPI Sustainable Energy Finance," which
was expected to show that agribusiness companies could use farm waste as
an energy source and thus reduce their dependence on fossil fuels.
BPI Vice President JM Sangco, also head of North Luzon Provincial
Lending, was to deliver the closing remarks.
Technical lectures on livestock production and poultry management would
cap the event.
Highly important
"THE agriculture sector is highly important for the Philippines as it
promotes food security. Agriculture promises to be the key to alleviate
poverty among millions of Filipinos who depend on farming and
livestock-raising. A stronger agriculture sector is needed to sustain
growth and food sufficiency," BPI said.
The bank stressed that a strong participation in agribusiness
development is part of its corporate social responsibility.
What compelled BPI to launch its agribusiness campaign this year is its
strong belief that the Philippines will be a big player in the livestock
industry in Southeast Asia. The bank noted that the country is free of
the food-and-mouth disease that has been the bane of cattle raisers in
the region.
Moreover, the Philippine poultry industry has been free from the
bird-flu virus that has decimated the stocks of chicken and duck raisers
in mainland Asia.
BPI also said agriculture has contributed 12.3 percent or P11.9 billion
of the country's gross domestic product in 2011. The labor force in
agriculture is 13 million, or 35 percent out of the total labor force of
37 million.
"BPI Agribusiness Solutions currently lends to piggery, poultry and
other agri-related businesses like fish production, fruits, vegetable
and crop production, post-harvest operations and food processing,
agricultural trading and sustainable/renewable-energy financing," the
bank said.
"Considering that both pork and poultry products are top staple foods
after rice and fish, there is a projected 10-percent increase in demand
for pork and about a 4-percent increase for chicken in 2013," it added.
"Currently, imports supply 153,000 metric tons [MT] of pork [6.82
percent of total consumption] and 179,000 MT for chicken [10.86 percent
of total consumption]. It is in these two big windows of opportunity
that BPI has decided to go big in 2013," the lender said.
Two agriproducts
FOR this year, BPI will unveil two agriproducts. The first, "BPI
Agribusiness Solutions Commercial Hog Breeding and Fattening," involves
the partnership between BPI and the Pig Improvement Co. (PIC) as the
technology provider and breed supplier for prospective clients. The PIC
targets to expand its sow level from 120,000 to 180,000, a 60,000
sow-level increase representing a 30-percent share of the total sow
level population.
The second, "BPI Agribusiness Solutions Poultry Contract
Growing/Commercial Broiler Operations," entails financing
qualified/prospective poultry contract growers of San Miguel Foods Inc.
(SMFI), which is bidding to increase its bird population by 5 million in
2013. Other integrators such as Bounty Fresh and other commercial
poultry integrators will also be tapped, depending on their expansion plans.
BPI said it is venturing into agriculture in consonance with the
Agri-Agra Law, which mandates banks to apportion 20 percent of its total
loan portfolio for agri-agra loans.
"If banks are unable to meet this ratio, they will be penalized by the
Bangko Sentral ng Pilipinas. BPI, like all other major banks, gets
penalized every now and then. BPI would therefore like to ensure full
compliance to this law from 2013 onward through the BPI Agribusiness
Solutions," the bank said.
BPI Agribusiness Solutions is concentrating on farm-growth corridors in
Central Luzon and the cities of Cagayan de Oro, General Santos and
Davao, and supporting existing clients of integrators like the PIC, the
SMC, Bounty Fresh and locals who want to expand their businesses,
whether they are BPI clients or not.
Middle-market companies, or those valued between P15 million and P100
million, are also qualified to benefit from BPI Agribusiness Solutions,
along with clients not engaged in agribusiness but are willing to
venture into it.
Existing BPI Preferred or High Value clients engaged in the agri/agra or
related businesses like piggery, poultry, feed mill, slaughter house,
chicken dressing, meat shop, rice mill, corn mill, fisheries, fruit,
vegetable and crop production, and agricultural trading are welcome to
join, according to the bank.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Thursday, March 7, 2013
BOI strips microenterprises of tax and other incentives
BOI strips microenterprises of tax and other incentives
Published on Wednesday, 06 March 2013 20:37 Written by InterAksyon.com
The Board of Investments (BOI) has removed microenterprises from the
list of businesses that can qualify for tax and other perks under this
year's Investment Priorities Plan (IPP). A microenterprise is a business
that has assets of under P3 million and so is the most feasible that the
poor can put up.
The removal of microenterprises from the list is one of the changes
introduced in the draft 2013 IPP. According to the draft plan, project
cost also has been removed from the list of criteria in bestowing
"pioneer" status to a business venture. A project that qualifies as
"pioneer" gets the most generous tax and non-tax incentives.
The BOI also tweaked several provisions of the specific guidelines for
agriculture, mass housing, energy, transport, infrastructure, motor
vehicles and tourism projects.
During Wednesday's public consultations on the draft 2013 IPP, BOI
Executive Director Lucita P. Reyes said this year's investment blueprint
is a "carryover" of the 2012 version as far as the preferred activities
and mandatory lists are concerned.
Like the 2012 IPP, the 2013 plan includes 13 investment areas in the
preferred activities list, namely, agriculture/agribusiness and fishery;
creative industries/knowledge-based services; shipbuilding; mass
housing; iron and steel; energy; infrastructure and public-private
partnership (PPP) projects; research and development; green projects;
manufacture of motor vehicles; strategic projects; hospital/medical
services; and disaster prevention, mitigation and recovery projects.
The mandatory list, as provided for by various laws, covers the
following industries: industrial tree plantation; exploration, mining,
quarrying and processing of minerals; publication or printing of
books/textbooks; refining, storage, marketing and distribution of
petroleum products; ecological solid waste management; clean water
projects; rehabilitation, self-development and self-reliance of persons
with disability; renewable energy; and tourism.
The IPP also provides incentives to export activities, as well as growth
sectors in the Autonomous Region in Muslim Mindanao.
But the 2013 IPP will no longer accept applications for
microenterprises, as incentives are already available under the barangay
microbusiness enterprise (BMBE) law, according to the BOI.
"In previous years, we included microenterprises since some LGUs [local
government units] were not implementing the BMBE law. We even provided a
special window for microenterprises and waived application fees," Reyes
said.
With regards to applicants for pioneer status, which may enjoy up to
eight years of income-tax holiday (ITH), the 2013 IPP took away the
magnitude of investment as a criterion, Reyes said. The previous IPPs
provided thresholds in project cost for pioneer projects.
Other changes in the 2013 IPP guidelines are:
o Projects with carbon-emission credits have to qualify under any of the
IPP listings but not as export-oriented activities;
o All agriculture projects should secure endorsement from the Department
of Agriculture (DA), and the BOI must also seek opinion or comment from
the DA before approving a project;
o New mass-housing projects outside the National Capital Region (NCR)
and Metro Cebu will be entitled to a three-year ITH, while new and
expansion projects within NCR and Metro Cebu to have a two-year ITH;
o Energy projects to be given one year from date of registration to
submit financial closure;
o For air-transport projects, revenues entitled to ITH will be limited
to passenger and cargo revenues, and Civil Aeronautics Board
certification is required;
o For water-transport projects, minimum lease period increased to five
years;
o For land-transport projects, alternative fuel buses were included;
o Ports, railways and toll ways transferred from infrastructure list to
PPP program list, upon request of the PPP Center for easier monitoring
of projects;
o Motorcycle assemblers must allocate half of the $2-million investment
requirement to manufacturing equipment; and
o No more ITH for hotels and resorts with accommodation facilities in
Boracay Island, Cebu City, Mactan Island and NCR, given the absorptive
capacity of these areas.
Reyes said the manufacturing road maps that the government and the
private sector are jointly developing will be integrated in next year's
IPP. These road maps will be part of a comprehensive national
manufacturing strategy, she said.
The drafting of the 2014 IPP will start as early as August this year,
Reyes said.
Under Executive Order 226, the annual IPP should be submitted to
Malacañang in March, but Reyes said the BOI aims to have the President
Aquino approve the 2014 IPP before year-end so it can be implemented by
January next year.
The BOI last year generated P360.35 billion worth of projects, slightly
lower than the previous year's P368.93 billion.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Published on Wednesday, 06 March 2013 20:37 Written by InterAksyon.com
The Board of Investments (BOI) has removed microenterprises from the
list of businesses that can qualify for tax and other perks under this
year's Investment Priorities Plan (IPP). A microenterprise is a business
that has assets of under P3 million and so is the most feasible that the
poor can put up.
The removal of microenterprises from the list is one of the changes
introduced in the draft 2013 IPP. According to the draft plan, project
cost also has been removed from the list of criteria in bestowing
"pioneer" status to a business venture. A project that qualifies as
"pioneer" gets the most generous tax and non-tax incentives.
The BOI also tweaked several provisions of the specific guidelines for
agriculture, mass housing, energy, transport, infrastructure, motor
vehicles and tourism projects.
During Wednesday's public consultations on the draft 2013 IPP, BOI
Executive Director Lucita P. Reyes said this year's investment blueprint
is a "carryover" of the 2012 version as far as the preferred activities
and mandatory lists are concerned.
Like the 2012 IPP, the 2013 plan includes 13 investment areas in the
preferred activities list, namely, agriculture/agribusiness and fishery;
creative industries/knowledge-based services; shipbuilding; mass
housing; iron and steel; energy; infrastructure and public-private
partnership (PPP) projects; research and development; green projects;
manufacture of motor vehicles; strategic projects; hospital/medical
services; and disaster prevention, mitigation and recovery projects.
The mandatory list, as provided for by various laws, covers the
following industries: industrial tree plantation; exploration, mining,
quarrying and processing of minerals; publication or printing of
books/textbooks; refining, storage, marketing and distribution of
petroleum products; ecological solid waste management; clean water
projects; rehabilitation, self-development and self-reliance of persons
with disability; renewable energy; and tourism.
The IPP also provides incentives to export activities, as well as growth
sectors in the Autonomous Region in Muslim Mindanao.
But the 2013 IPP will no longer accept applications for
microenterprises, as incentives are already available under the barangay
microbusiness enterprise (BMBE) law, according to the BOI.
"In previous years, we included microenterprises since some LGUs [local
government units] were not implementing the BMBE law. We even provided a
special window for microenterprises and waived application fees," Reyes
said.
With regards to applicants for pioneer status, which may enjoy up to
eight years of income-tax holiday (ITH), the 2013 IPP took away the
magnitude of investment as a criterion, Reyes said. The previous IPPs
provided thresholds in project cost for pioneer projects.
Other changes in the 2013 IPP guidelines are:
o Projects with carbon-emission credits have to qualify under any of the
IPP listings but not as export-oriented activities;
o All agriculture projects should secure endorsement from the Department
of Agriculture (DA), and the BOI must also seek opinion or comment from
the DA before approving a project;
o New mass-housing projects outside the National Capital Region (NCR)
and Metro Cebu will be entitled to a three-year ITH, while new and
expansion projects within NCR and Metro Cebu to have a two-year ITH;
o Energy projects to be given one year from date of registration to
submit financial closure;
o For air-transport projects, revenues entitled to ITH will be limited
to passenger and cargo revenues, and Civil Aeronautics Board
certification is required;
o For water-transport projects, minimum lease period increased to five
years;
o For land-transport projects, alternative fuel buses were included;
o Ports, railways and toll ways transferred from infrastructure list to
PPP program list, upon request of the PPP Center for easier monitoring
of projects;
o Motorcycle assemblers must allocate half of the $2-million investment
requirement to manufacturing equipment; and
o No more ITH for hotels and resorts with accommodation facilities in
Boracay Island, Cebu City, Mactan Island and NCR, given the absorptive
capacity of these areas.
Reyes said the manufacturing road maps that the government and the
private sector are jointly developing will be integrated in next year's
IPP. These road maps will be part of a comprehensive national
manufacturing strategy, she said.
The drafting of the 2014 IPP will start as early as August this year,
Reyes said.
Under Executive Order 226, the annual IPP should be submitted to
Malacañang in March, but Reyes said the BOI aims to have the President
Aquino approve the 2014 IPP before year-end so it can be implemented by
January next year.
The BOI last year generated P360.35 billion worth of projects, slightly
lower than the previous year's P368.93 billion.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Wednesday, March 6, 2013
Philippines’ elite swallow country’s new wealth
Philippines' elite swallow country's new wealth
1:02 pm | Sunday, March 3rd, 2013
MANILA – Optimism is soaring that the Philippines is finally becoming an
Asian tiger economy, but critics caution a tiny elite that has long
dominated is amassing most of the new wealth while the poor miss out.
President Benigno Aquino has overseen some of the highest growth rates
in the region since he took office in 2010, while the stock market has
hovered in record territory, credit ratings have improved and debt
ratios have dropped.
"The Philippines is no longer the sick man of East Asia, but the rising
tiger," World Bank country director Motoo Konishi told a forum attended
by many of Aquino's economic planning chiefs recently.
However economists say that, despite genuine efforts from Aquino's team
to create inclusive growth, little progress has been made in changing a
structure that for decades has allowed one of Asia's worst rich-poor
divides to develop.
"I think it's obvious to everyone that something is structurally wrong.
The oligarchy has too much control of the country's resources," Cielito
Habito, a respected former economic planning minister, told AFP.
He presented data to the same economic forum at which Konishi spoke,
showing that in 2011 the 40 richest families on the Forbes wealth list
accounted for 76 percent of the country's gross domestic product (GDP)
growth.
This was the highest in Asia, compared with Thailand where the top 40
accounted for 33.7 percent of wealth growth, 5.6 percent for Malaysia
and just 2.8 percent for Japan, according to Habito.
According to the Forbes 2012 annual rich list, the two wealthiest people
in the Philippines, ethnic Chinese magnates Henry Sy and Lucio Tan, were
worth a combined $13.6 billion.
This equated to six percent of the entire Philippine economy.
In contrast, about 25 million people, or one quarter of the population,
lived on $1 a day or less in 2009, which was little changed from a
decade earlier, according to the government's most recent data.
Some of the elite families have dominated since the Spanish colonial era
that ended in the late 1800s.
Prominent Spanish names, such as Ayala and Aboitiz, continue to control
large chunks of the economy and members of the families are consistent
high placers on Forbes' annual top-40 wealth list.
Their business interests range from utilities to property development to
banking, telecommunications and the booming business process outsourcing
industry.
Many of the ethnic Chinese tycoons, such as Sy and Tan, got their start
soon after the country gained post-World War II independence from the
United States.
The tendency for the same names to dominate major industries can be
partly attributed to government regulations that continue to allow near
monopolies and protections for key players.
For decades after independence from the United States in 1946, important
sectors such as air transport and telecommunications were under monopoly
control, according to a Philippine Institute for Development Studies paper.
Despite wide-ranging reforms since 1981, big chunks of the market remain
effective oligopolies or cartels, it said.
Habito said the path to riches for the few is also helped by a political
culture that allows personal connections to easily open doors.
The Aquino government's mantra since succeeding graft-tainted Gloria
Arroyo's administration has been good governance and inclusive growth,
and their efforts have been applauded by the international community.
The government is spending more than $1 billion this year on one of its
signature programmes to bridge the rich-poor divide.
The conditional cash transfers programme will see 15 million of the
nation's poorest people receive money directly in exchange for going to
school and getting proper health care.
However Louie Montemar, a political science professor at Manila's De La
Salle University, said little had been done at the top end to impact on
the dominance of the elite.
"There's some sense to the argument that we've never had a real
democracy because only a few have controlled economic power," Montemar
told AFP.
"The country dances to the tune of the tiny elite."
Nevertheless, the government and economists say there are many other
reforms that can be taken to bring about inclusive growth.
Analysts said the most direct path out of poverty was improving worker
skills, using higher tax revenues to boost spending on infrastructure,
and rebuilding the country's manufacturing sector.
To this end, many economists endorse the Aquino government's cash
transfer programme as well as reforms to the education system, which
include extending the primary and high school system from 10 to 13 years.
But for people such as mother-of-five Remy del Rosario, who earns about
1,500 pesos ($36) a week selling cigarettes on a Manila roadside, talk
of structural reform and inclusive growth mean little.
With her bus driver husband out of work, the family has no savings and
her income is barely enough to cover food, bus fare, and prescription
medicines.
"Other people may be better off now, but we see no improvement in our
lives," she said.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
1:02 pm | Sunday, March 3rd, 2013
MANILA – Optimism is soaring that the Philippines is finally becoming an
Asian tiger economy, but critics caution a tiny elite that has long
dominated is amassing most of the new wealth while the poor miss out.
President Benigno Aquino has overseen some of the highest growth rates
in the region since he took office in 2010, while the stock market has
hovered in record territory, credit ratings have improved and debt
ratios have dropped.
"The Philippines is no longer the sick man of East Asia, but the rising
tiger," World Bank country director Motoo Konishi told a forum attended
by many of Aquino's economic planning chiefs recently.
However economists say that, despite genuine efforts from Aquino's team
to create inclusive growth, little progress has been made in changing a
structure that for decades has allowed one of Asia's worst rich-poor
divides to develop.
"I think it's obvious to everyone that something is structurally wrong.
The oligarchy has too much control of the country's resources," Cielito
Habito, a respected former economic planning minister, told AFP.
He presented data to the same economic forum at which Konishi spoke,
showing that in 2011 the 40 richest families on the Forbes wealth list
accounted for 76 percent of the country's gross domestic product (GDP)
growth.
This was the highest in Asia, compared with Thailand where the top 40
accounted for 33.7 percent of wealth growth, 5.6 percent for Malaysia
and just 2.8 percent for Japan, according to Habito.
According to the Forbes 2012 annual rich list, the two wealthiest people
in the Philippines, ethnic Chinese magnates Henry Sy and Lucio Tan, were
worth a combined $13.6 billion.
This equated to six percent of the entire Philippine economy.
In contrast, about 25 million people, or one quarter of the population,
lived on $1 a day or less in 2009, which was little changed from a
decade earlier, according to the government's most recent data.
Some of the elite families have dominated since the Spanish colonial era
that ended in the late 1800s.
Prominent Spanish names, such as Ayala and Aboitiz, continue to control
large chunks of the economy and members of the families are consistent
high placers on Forbes' annual top-40 wealth list.
Their business interests range from utilities to property development to
banking, telecommunications and the booming business process outsourcing
industry.
Many of the ethnic Chinese tycoons, such as Sy and Tan, got their start
soon after the country gained post-World War II independence from the
United States.
The tendency for the same names to dominate major industries can be
partly attributed to government regulations that continue to allow near
monopolies and protections for key players.
For decades after independence from the United States in 1946, important
sectors such as air transport and telecommunications were under monopoly
control, according to a Philippine Institute for Development Studies paper.
Despite wide-ranging reforms since 1981, big chunks of the market remain
effective oligopolies or cartels, it said.
Habito said the path to riches for the few is also helped by a political
culture that allows personal connections to easily open doors.
The Aquino government's mantra since succeeding graft-tainted Gloria
Arroyo's administration has been good governance and inclusive growth,
and their efforts have been applauded by the international community.
The government is spending more than $1 billion this year on one of its
signature programmes to bridge the rich-poor divide.
The conditional cash transfers programme will see 15 million of the
nation's poorest people receive money directly in exchange for going to
school and getting proper health care.
However Louie Montemar, a political science professor at Manila's De La
Salle University, said little had been done at the top end to impact on
the dominance of the elite.
"There's some sense to the argument that we've never had a real
democracy because only a few have controlled economic power," Montemar
told AFP.
"The country dances to the tune of the tiny elite."
Nevertheless, the government and economists say there are many other
reforms that can be taken to bring about inclusive growth.
Analysts said the most direct path out of poverty was improving worker
skills, using higher tax revenues to boost spending on infrastructure,
and rebuilding the country's manufacturing sector.
To this end, many economists endorse the Aquino government's cash
transfer programme as well as reforms to the education system, which
include extending the primary and high school system from 10 to 13 years.
But for people such as mother-of-five Remy del Rosario, who earns about
1,500 pesos ($36) a week selling cigarettes on a Manila roadside, talk
of structural reform and inclusive growth mean little.
With her bus driver husband out of work, the family has no savings and
her income is barely enough to cover food, bus fare, and prescription
medicines.
"Other people may be better off now, but we see no improvement in our
lives," she said.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Monday, March 4, 2013
AGFUND Mulls $5-M Microfinance Bank Here As Asian Regional Hub
AGFUND Mulls $5-M Microfinance Bank Here As Asian Regional Hub
Article by: Emmie V. Abadilla
Published: February 27, 2013
As part of its "social business" drive, the Arab Gulf Programme For
Development (AGFUND), a non-profit organization based in Riyadh, will
open a micro-finance bank in the Philippines capitalized initially at
US$5 million and modelled after the Grameen system, announced Executive
Director Nasser B. Al-Kahtani.
AGFUND has successfully implemented seven Grameen initiatives. It
started in 2006 in Jordan, followed by Yemen, two years later, where its
initial $5-million investment quadrupled to $20 million in 4 years.
The Arab development organization also duplicated their micro-finance
projects in Bahrain Syria, Lebanon, Bahrain and in Sierra Leone, Africa.
Now, it is finalizing its micro-finance banking license in Sudan and
Palestine.
Next year, AGFUND expects to start operating its micro-finance bank in
the country, its first Asian site. "We are not limited to Arab
countries. We want to expand Southeast Asia and make the Philippines our
hub in the region," he explained.
AGFUND, which will take 40 percent stake in the venture, plans to put in
USD$2million seed money to be matched by a counterpart investment from
the Philippine government and the private sector.
A couple of months ago, AGFUND's team has completed the feasibility
study for its microfinance bank. Now, it is discussing with the local
chambers of commerce, the Department of Finance and the Bangko Sentral
ng Pilipinas (BSP) for its licensing.
"We we will have a follow-up meeting with BSP on Friday (March 1, 2013)
this week," according to the Executive Director. "The government is very
supportive. Once we get a partner, we will submit our application for a
license."
AGFUND President and Founder, Prince Talal Bin Abdul Aziz, took Grameen
Bank Founder Muhammad Yunus as a strategic partner in the region for its
social business initiative.
Prince Talal, one of the world's leading humanitarians, has undertaken
the personal mission to alleviate the suffering of the poor,
particularly women and children, in developing nations.
The Grameen Bank (GB) of Bangladesh, formally launched in June 1979, is
one of the world's most successful financial institutions banking with
the poor.
So far, in the Philippines, where 56 percent of households still live
under the international poverty line, the Grameen system has been
replicated by at least 27 entities in the past two decades.
Analysts concluded that "any attempt to replicate or expand the Grameen
program should be carried out with great caution."
The analysts maintained it was donor-driven. Internal resource
mobilization proved minimal with inadequate interest rates. The costs,
shared about equally between government and replicators, were
exorbitant. Excessive brokering of low-cost funds also discouraged
people from saving.
Say Something
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Article by: Emmie V. Abadilla
Published: February 27, 2013
As part of its "social business" drive, the Arab Gulf Programme For
Development (AGFUND), a non-profit organization based in Riyadh, will
open a micro-finance bank in the Philippines capitalized initially at
US$5 million and modelled after the Grameen system, announced Executive
Director Nasser B. Al-Kahtani.
AGFUND has successfully implemented seven Grameen initiatives. It
started in 2006 in Jordan, followed by Yemen, two years later, where its
initial $5-million investment quadrupled to $20 million in 4 years.
The Arab development organization also duplicated their micro-finance
projects in Bahrain Syria, Lebanon, Bahrain and in Sierra Leone, Africa.
Now, it is finalizing its micro-finance banking license in Sudan and
Palestine.
Next year, AGFUND expects to start operating its micro-finance bank in
the country, its first Asian site. "We are not limited to Arab
countries. We want to expand Southeast Asia and make the Philippines our
hub in the region," he explained.
AGFUND, which will take 40 percent stake in the venture, plans to put in
USD$2million seed money to be matched by a counterpart investment from
the Philippine government and the private sector.
A couple of months ago, AGFUND's team has completed the feasibility
study for its microfinance bank. Now, it is discussing with the local
chambers of commerce, the Department of Finance and the Bangko Sentral
ng Pilipinas (BSP) for its licensing.
"We we will have a follow-up meeting with BSP on Friday (March 1, 2013)
this week," according to the Executive Director. "The government is very
supportive. Once we get a partner, we will submit our application for a
license."
AGFUND President and Founder, Prince Talal Bin Abdul Aziz, took Grameen
Bank Founder Muhammad Yunus as a strategic partner in the region for its
social business initiative.
Prince Talal, one of the world's leading humanitarians, has undertaken
the personal mission to alleviate the suffering of the poor,
particularly women and children, in developing nations.
The Grameen Bank (GB) of Bangladesh, formally launched in June 1979, is
one of the world's most successful financial institutions banking with
the poor.
So far, in the Philippines, where 56 percent of households still live
under the international poverty line, the Grameen system has been
replicated by at least 27 entities in the past two decades.
Analysts concluded that "any attempt to replicate or expand the Grameen
program should be carried out with great caution."
The analysts maintained it was donor-driven. Internal resource
mobilization proved minimal with inadequate interest rates. The costs,
shared about equally between government and replicators, were
exorbitant. Excessive brokering of low-cost funds also discouraged
people from saving.
Say Something
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Sunday, March 3, 2013
SB Corp. loan releases to MSMEs reach P3.8 billion
SB Corp. loan releases to MSMEs reach P3.8 billion
Published on Sunday, 17 February 2013 18:41 Written by Jennifer A. Ng /
Reporter
LOANS extended by the Small Business Corp. (SB Corp.) to micro, small
and medium enterprises (MSMEs) declined by 2.5 percent on year to P3.8
billion in 2012, from P3.9 billion the year before.
"Unlike in previous years, the corporation's wholesale lending program
experienced a slight dip with the bigger banks having access to
lower-cost funds," SB Corp. said in a statement posted on its web site.
SB Corp., an attached government financial institution (GFI) of the
Department of Trade and Industry, provides direct financing for MSMEs
needing additional capital.
The GFI said its credit guarantees jumped by 119 percent on year to
P87.9 million in 2012, from P40.2 million the year before. The number of
SMEs guaranteed also increased by 96 percent to 49 last year from 25 in
2011.
Benel P. Lagua, SB Corp. president and chief operating officer, said
loans posted last year brought the corporation's total funding for MSMEs
to P38.5 billion as of 2012.
The SB Corp.'s retail lending to MSMEs increased by 7.9 percent on year
to P580.45 million in 2012, from P537.84 million the year before. The
wholesale lending program amounted to P1.3 billion. This amount was
released to 126 partner-financial institutions, a 13-percent increase
from 111 in 2011.
"Last year the corporation's wholesale microfinance lending reached
P1.77 billion. Out of this amount, P366.2 million was released to 12 out
of the 19 poorest provinces in the country through the Rural
Micro-Enterprise Promotion Program [Rumepp]," Lagua said.
The Rumepp is a seven-year rural microfinance program that is funded by
the International Fund for Agricultural Development. It complements the
government's programs for poverty alleviation by providing sound credit
delivery that is matched with business development services.
South Luzon, including Metro Manila, still has the bulk—55 percent—of
the SB Corp.'s loan portfolio. Mindanao increased its portfolio share to
24 percent; the Visayas, 16 percent; and North Luzon, 5 percent.
"Over the past few years, the SB Corp.'s loan releases have been kept
steady at the P4-billion level with no new fund infusion, despite the
increase mandated by Republic Act 9501, or the Magna Carta for Micro,
Small and Medium Enterprises, which was passed in 2008," Lagua said.
As of 2012, acquisition on the SB Corp.'s mandatory allocation
instruments reached P15.35 billion. Also, the acquisition of MSME notes
reached P1.18 billion last year, a 6-percent increase from P1.11 billion
in 2011.
Eighty-nine banks availed themselves of these MSME notes. Of the number,
53 are rural banks. Eight rural banks have subscribed to the GFI's
preferred shares with a total acquisition of P28.4 million.
"The proceeds from these instruments support the corporation's
capacity-building programs for MSMEs and financial institutions
servicing MSME financing requirements," Lagua said.
The SB Corp. has also capacitated 22 rural banks on the use of
risk-based lending technology, and trained 82 participants from 71
enterprises on enterprise enhancement, business-performance analysis,
computerized accounting systems and financial record keeping. Through
its Enterprise Enhancement Program, SB Corp. trained nine enterprises on
making business plans.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Published on Sunday, 17 February 2013 18:41 Written by Jennifer A. Ng /
Reporter
LOANS extended by the Small Business Corp. (SB Corp.) to micro, small
and medium enterprises (MSMEs) declined by 2.5 percent on year to P3.8
billion in 2012, from P3.9 billion the year before.
"Unlike in previous years, the corporation's wholesale lending program
experienced a slight dip with the bigger banks having access to
lower-cost funds," SB Corp. said in a statement posted on its web site.
SB Corp., an attached government financial institution (GFI) of the
Department of Trade and Industry, provides direct financing for MSMEs
needing additional capital.
The GFI said its credit guarantees jumped by 119 percent on year to
P87.9 million in 2012, from P40.2 million the year before. The number of
SMEs guaranteed also increased by 96 percent to 49 last year from 25 in
2011.
Benel P. Lagua, SB Corp. president and chief operating officer, said
loans posted last year brought the corporation's total funding for MSMEs
to P38.5 billion as of 2012.
The SB Corp.'s retail lending to MSMEs increased by 7.9 percent on year
to P580.45 million in 2012, from P537.84 million the year before. The
wholesale lending program amounted to P1.3 billion. This amount was
released to 126 partner-financial institutions, a 13-percent increase
from 111 in 2011.
"Last year the corporation's wholesale microfinance lending reached
P1.77 billion. Out of this amount, P366.2 million was released to 12 out
of the 19 poorest provinces in the country through the Rural
Micro-Enterprise Promotion Program [Rumepp]," Lagua said.
The Rumepp is a seven-year rural microfinance program that is funded by
the International Fund for Agricultural Development. It complements the
government's programs for poverty alleviation by providing sound credit
delivery that is matched with business development services.
South Luzon, including Metro Manila, still has the bulk—55 percent—of
the SB Corp.'s loan portfolio. Mindanao increased its portfolio share to
24 percent; the Visayas, 16 percent; and North Luzon, 5 percent.
"Over the past few years, the SB Corp.'s loan releases have been kept
steady at the P4-billion level with no new fund infusion, despite the
increase mandated by Republic Act 9501, or the Magna Carta for Micro,
Small and Medium Enterprises, which was passed in 2008," Lagua said.
As of 2012, acquisition on the SB Corp.'s mandatory allocation
instruments reached P15.35 billion. Also, the acquisition of MSME notes
reached P1.18 billion last year, a 6-percent increase from P1.11 billion
in 2011.
Eighty-nine banks availed themselves of these MSME notes. Of the number,
53 are rural banks. Eight rural banks have subscribed to the GFI's
preferred shares with a total acquisition of P28.4 million.
"The proceeds from these instruments support the corporation's
capacity-building programs for MSMEs and financial institutions
servicing MSME financing requirements," Lagua said.
The SB Corp. has also capacitated 22 rural banks on the use of
risk-based lending technology, and trained 82 participants from 71
enterprises on enterprise enhancement, business-performance analysis,
computerized accounting systems and financial record keeping. Through
its Enterprise Enhancement Program, SB Corp. trained nine enterprises on
making business plans.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Filipinos embrace idea of ‘vertical or condo living’
Filipinos embrace idea of 'vertical or condo living'
Published on Tuesday, 26 February 2013 19:01 Written by Roderick L. Abad
SINCE the last real-estate boom in the country in the mid-1990s, the
concept of "condo living" has become more popular in the country,
according to a top official of a national real-estate group.
"The surge in the number of condo [condominium] projects in the country
today can be attributed to several factors," National Real Estate
Association Inc. (NREA) President Benigno T. Cabrieto Jr. told the
BusinessMirror in an interview.
Primarily, he said, the mushrooming of "vertical" residential projects
in the country is due to increasing demand from overseas Filipino
workers (OFW).
Approximately, P240 billion, or 30 percent of the $20 billion in OFW
remittances, is invested in real estate every year, the bulk of which
goes to condominium units in key cities of Metro Manila.
It is noted that such amount was not significant during the mid-1990s'
boom of the real-estate sector.
Cabrieto pointed out that "payment terms for the condo units are more
affordable now for the middle class, partly due to very low interest
rates offered by the banks and the Pag-IBIG Fund."
Urban migration also contributed to the increasing demand for more
dwelling units in Metro Manila (National Capital Region) and its key
cities, he noted.
Because land in the region and the key cities is getting scarcer and
more expensive, Cabrieto explained that condo projects are getting more
popular among developers.
"New and innovative designs of condos make the project more efficient,
environment friendly and more affordable to buyers," he said.
Cabrieto also noted that buyers have developed preference for buying
condo units within Metro Manila over house-and-lot units in the suburbs
due to "traffic, high fuel cost and lack of mass transport."
"Even if the amortization of house-and-lot units in the suburbs is
lesser than that of the condos, adding the fuel cost and road toll makes
it more expensive," he said.
Real-estate developers are targeting the OFWs, people working or
studying in or near the project area, as well as apartment dwellers, for
their condo projects.
They also aim to tap newly married and retired couples or starter
families who also need housing.
Demand for condo units, according to the NREA President, is dictated by
need and affordability.
The OFWs, he said, buy for investment and future needs.
Due to the unabated traffic problem in Metro Manila, people living or
working in the project vicinity is a good target market as they see its
accessibility as an advantage.
For the apartment dwellers who would not want to leave the region,
Carbieto said they are encouraged to buy a condo if its monthly
amortization cost is almost the same as the monthly rental cost of their
apartment.
Other potential markets, he added, are newly married people, especially
DINKs (double income no kids) and senior citizens whose children have
gotten married and left them or have found their house empty and hard to
maintain.
"It becomes more practical for them to sell the big house and live in
the condo during their twilight years," Cabrieto said.
In a nutshell, there are a lot of benefits in living in a condo or
vertical residential project.
But mostly, having better security systems, easier maintenance and
nearness to the conveniences of city living are "come-on" factors why
homeowners prefer to live in condominiums.
The concept of condo living or vertical residential project is
fast-becoming a trend not only in the Philippines but worldwide,
Cabrieto also noted.
This, he said, is fueled by another global phenomenon, "rapid urban
migration," where more people are living in the cities than in the
countryside.
The idea of "green urbanism" is also catching a lot of attention because
it defines the ideal way of urban development.
"Green urbanism requires energy-efficient buildings, with lots of
greeneries, where people just walk to their place of work, with a good
mass transport system with minimal carbon footprint. Lowering the carbon
footprint or the amount of fossil fuel being burned, is the trend today
to alleviate the effects of climate change," the NREA top official said.
While real-estate developers in the country are building numerous
residential projects, particularly in the vertical segment, it seems
that the supply in the industry itself is not sufficient to meet the
growing demand on a national scale.
In fact, based on the Philippine Housing Industry Plan: 2012-2030 by the
Subdivision and Housing Developers Association Inc., the current housing
backlog in the country is 3,919,566, including 832,046 families who
cannot afford a housing unit and need government subsidy.
"The housing backlog comes mainly from the low-income segment of our
society," Cabrieto said.
Such figure is estimated to grow to 6,546,106 by 2030 if not addressed.
Given this, the condo sector, or the real-estate industry as a whole, is
helping meet the housing backlog in the country at present.
"But more low-cost and socialized condo units should be built in Metro
Manila and key cities since the housing backlog is in the low-income
segment of our society," the NREA president said.
The real challenge to the government, he added, is how to eliminate the
squatter colonies in Metro Manila and provide decent housing to its
citizens.
At NREA, Cabrieto said, they help in elevating standards of vertical
living through advocacies led by their member-architects who belong to
the top 100 architects in the world.
"The past president of NREA, architect Felino Palafox Jr., is advocating
green urbanism through his designs and through his series of lectures
and advocacy campaign. A member of the NREA board, architect Abelardo
Tolentino who ranks No. 86 in the world, is also helping in elevating
the standard of condominium development through his innovative designs,"
he added.
With the continued prominence of condo living among the populace,
Cabrieto lauded those premier real-estate developers in the country who,
in their own initiative, have redefined vertical developments with their
well-planned and intelligently crafted designs that provide not only the
comfort and convenience that residents need but also a dignified kind of
lifestyle they deserve.
"Condo living is the wave of the future. As demand for affordable
dwelling units in the metropolis rises, we have to go vertical to
accommodate all this demand because land is a finite resource in the
metropolis," he said.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Published on Tuesday, 26 February 2013 19:01 Written by Roderick L. Abad
SINCE the last real-estate boom in the country in the mid-1990s, the
concept of "condo living" has become more popular in the country,
according to a top official of a national real-estate group.
"The surge in the number of condo [condominium] projects in the country
today can be attributed to several factors," National Real Estate
Association Inc. (NREA) President Benigno T. Cabrieto Jr. told the
BusinessMirror in an interview.
Primarily, he said, the mushrooming of "vertical" residential projects
in the country is due to increasing demand from overseas Filipino
workers (OFW).
Approximately, P240 billion, or 30 percent of the $20 billion in OFW
remittances, is invested in real estate every year, the bulk of which
goes to condominium units in key cities of Metro Manila.
It is noted that such amount was not significant during the mid-1990s'
boom of the real-estate sector.
Cabrieto pointed out that "payment terms for the condo units are more
affordable now for the middle class, partly due to very low interest
rates offered by the banks and the Pag-IBIG Fund."
Urban migration also contributed to the increasing demand for more
dwelling units in Metro Manila (National Capital Region) and its key
cities, he noted.
Because land in the region and the key cities is getting scarcer and
more expensive, Cabrieto explained that condo projects are getting more
popular among developers.
"New and innovative designs of condos make the project more efficient,
environment friendly and more affordable to buyers," he said.
Cabrieto also noted that buyers have developed preference for buying
condo units within Metro Manila over house-and-lot units in the suburbs
due to "traffic, high fuel cost and lack of mass transport."
"Even if the amortization of house-and-lot units in the suburbs is
lesser than that of the condos, adding the fuel cost and road toll makes
it more expensive," he said.
Real-estate developers are targeting the OFWs, people working or
studying in or near the project area, as well as apartment dwellers, for
their condo projects.
They also aim to tap newly married and retired couples or starter
families who also need housing.
Demand for condo units, according to the NREA President, is dictated by
need and affordability.
The OFWs, he said, buy for investment and future needs.
Due to the unabated traffic problem in Metro Manila, people living or
working in the project vicinity is a good target market as they see its
accessibility as an advantage.
For the apartment dwellers who would not want to leave the region,
Carbieto said they are encouraged to buy a condo if its monthly
amortization cost is almost the same as the monthly rental cost of their
apartment.
Other potential markets, he added, are newly married people, especially
DINKs (double income no kids) and senior citizens whose children have
gotten married and left them or have found their house empty and hard to
maintain.
"It becomes more practical for them to sell the big house and live in
the condo during their twilight years," Cabrieto said.
In a nutshell, there are a lot of benefits in living in a condo or
vertical residential project.
But mostly, having better security systems, easier maintenance and
nearness to the conveniences of city living are "come-on" factors why
homeowners prefer to live in condominiums.
The concept of condo living or vertical residential project is
fast-becoming a trend not only in the Philippines but worldwide,
Cabrieto also noted.
This, he said, is fueled by another global phenomenon, "rapid urban
migration," where more people are living in the cities than in the
countryside.
The idea of "green urbanism" is also catching a lot of attention because
it defines the ideal way of urban development.
"Green urbanism requires energy-efficient buildings, with lots of
greeneries, where people just walk to their place of work, with a good
mass transport system with minimal carbon footprint. Lowering the carbon
footprint or the amount of fossil fuel being burned, is the trend today
to alleviate the effects of climate change," the NREA top official said.
While real-estate developers in the country are building numerous
residential projects, particularly in the vertical segment, it seems
that the supply in the industry itself is not sufficient to meet the
growing demand on a national scale.
In fact, based on the Philippine Housing Industry Plan: 2012-2030 by the
Subdivision and Housing Developers Association Inc., the current housing
backlog in the country is 3,919,566, including 832,046 families who
cannot afford a housing unit and need government subsidy.
"The housing backlog comes mainly from the low-income segment of our
society," Cabrieto said.
Such figure is estimated to grow to 6,546,106 by 2030 if not addressed.
Given this, the condo sector, or the real-estate industry as a whole, is
helping meet the housing backlog in the country at present.
"But more low-cost and socialized condo units should be built in Metro
Manila and key cities since the housing backlog is in the low-income
segment of our society," the NREA president said.
The real challenge to the government, he added, is how to eliminate the
squatter colonies in Metro Manila and provide decent housing to its
citizens.
At NREA, Cabrieto said, they help in elevating standards of vertical
living through advocacies led by their member-architects who belong to
the top 100 architects in the world.
"The past president of NREA, architect Felino Palafox Jr., is advocating
green urbanism through his designs and through his series of lectures
and advocacy campaign. A member of the NREA board, architect Abelardo
Tolentino who ranks No. 86 in the world, is also helping in elevating
the standard of condominium development through his innovative designs,"
he added.
With the continued prominence of condo living among the populace,
Cabrieto lauded those premier real-estate developers in the country who,
in their own initiative, have redefined vertical developments with their
well-planned and intelligently crafted designs that provide not only the
comfort and convenience that residents need but also a dignified kind of
lifestyle they deserve.
"Condo living is the wave of the future. As demand for affordable
dwelling units in the metropolis rises, we have to go vertical to
accommodate all this demand because land is a finite resource in the
metropolis," he said.
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
Saturday, March 2, 2013
World Bank Cites CCT Program
World Bank Cites CCT Program
By Edu Lopez
March 1, 2013, 5:14pm
The government's conditional cash transfer (CCT) program is on track to
achieve its objectives of promoting investments in the health and
education of children while providing immediate financial support to
poor families.
These are the main findings of the recently completed assessment of the
CCT – the first in a series of evaluations being done on the program –
by the World Bank in a public forum held in Quezon City led by the
Department of Social Welfare and Development (DSWD) with support from
the Australian Agency for International Development (AusAID) and the
Asian Development Bank (ADB).
Titled "Philippines Conditional Cash Transfer Program, Impact Evaluation
2012," the report confirms that children of Pantawid Pamilya
beneficiaries are enrolling and attending schools, with improved health
due to regular visits to health stations, and pregnant mothers getting
proper care.
Junko Onishi, World Bank's social protection specialist, said Pantawid
Pamilya has contributed to reduction in the severe stunting among poor
children 6-36 months of age in Pantawid barangays.
Stunting in the first two years of life is known to cause irreversible
damage later in life including lower educational attainment, reduced
adult income, and decreased offspring birth weight. The reduction in
severe stunting among poor children at this age will have long-term
benefits, Ms. Onishi said.
"This reduction in severe stunting indicates that CCT is enabling
families to better care for their children," said Ms. Onishi, who
presented the highlights of the impact evaluation during a forum.
"More parents in Pantawid barangays are feeding their children with
high-protein food including eggs and fish, leading to improved
nutritional status."
"Poor households under the program spend 38 percent more in education
per capita and 34 percent more on medical expenses per capita than their
non-Pantawid counterparts. This trend indicates a shift in the spending
pattern among CCT beneficiaries towards greater investments in health
and education of their children," said Nazmul Chaudhury, World Bank's
country sector coordinator for human development, and one of the authors
of the report.
The study recommends that coordination among health service providers
needs to be strengthened to ensure that beneficiary mothers and children
get the services they require and to ensure continuity of care.
It also suggested exploring the possibility of extending coverage from
the current five years, increasing the grant amount for older children,
and improving school facilities and services.
The impact evaluation study was funded by the World Bank and the
Australian Agency for International Development (AusAID). The study was
led by the World Bank and the Department of Social Welfare and
Development (DSWD), in coordination with AusAID and the Asian
Development Bank (ADB).
"I am pleased to know that the children of poor families are indeed
enjoying better and improving access to education and better health
services through Pantawid Pamilya," said DSWD Sec.Corazon Juliano-Soliman.
"Along with other government programs aimed to reduce poverty, Pantawid
Pamilya ensures that no one gets left behind in terms achieving holistic
and inclusive growth."
The assessment was based on the analysis of 1,418 poor households
eligible for the program from a survey covering 3,742 households in the
provinces of Lanao del Norte, Mountain Province, Negros Occidental, and
Occidental Mindoro. There are more than 3 million poor families with
more than 6 million children benefitting from the program.
Pantawid Pamilya provides cash grants to poor households to encourage
them to keep their children age 0-14 in school and have regular health
checks.
Pregnant mothers are required to avail of proper medical care and their
deliveries attended to by health professionals. Mothers are also
required to attend family development sessions where they discuss topics
on parenting and accessing social services in the community. (EHL)
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
By Edu Lopez
March 1, 2013, 5:14pm
The government's conditional cash transfer (CCT) program is on track to
achieve its objectives of promoting investments in the health and
education of children while providing immediate financial support to
poor families.
These are the main findings of the recently completed assessment of the
CCT – the first in a series of evaluations being done on the program –
by the World Bank in a public forum held in Quezon City led by the
Department of Social Welfare and Development (DSWD) with support from
the Australian Agency for International Development (AusAID) and the
Asian Development Bank (ADB).
Titled "Philippines Conditional Cash Transfer Program, Impact Evaluation
2012," the report confirms that children of Pantawid Pamilya
beneficiaries are enrolling and attending schools, with improved health
due to regular visits to health stations, and pregnant mothers getting
proper care.
Junko Onishi, World Bank's social protection specialist, said Pantawid
Pamilya has contributed to reduction in the severe stunting among poor
children 6-36 months of age in Pantawid barangays.
Stunting in the first two years of life is known to cause irreversible
damage later in life including lower educational attainment, reduced
adult income, and decreased offspring birth weight. The reduction in
severe stunting among poor children at this age will have long-term
benefits, Ms. Onishi said.
"This reduction in severe stunting indicates that CCT is enabling
families to better care for their children," said Ms. Onishi, who
presented the highlights of the impact evaluation during a forum.
"More parents in Pantawid barangays are feeding their children with
high-protein food including eggs and fish, leading to improved
nutritional status."
"Poor households under the program spend 38 percent more in education
per capita and 34 percent more on medical expenses per capita than their
non-Pantawid counterparts. This trend indicates a shift in the spending
pattern among CCT beneficiaries towards greater investments in health
and education of their children," said Nazmul Chaudhury, World Bank's
country sector coordinator for human development, and one of the authors
of the report.
The study recommends that coordination among health service providers
needs to be strengthened to ensure that beneficiary mothers and children
get the services they require and to ensure continuity of care.
It also suggested exploring the possibility of extending coverage from
the current five years, increasing the grant amount for older children,
and improving school facilities and services.
The impact evaluation study was funded by the World Bank and the
Australian Agency for International Development (AusAID). The study was
led by the World Bank and the Department of Social Welfare and
Development (DSWD), in coordination with AusAID and the Asian
Development Bank (ADB).
"I am pleased to know that the children of poor families are indeed
enjoying better and improving access to education and better health
services through Pantawid Pamilya," said DSWD Sec.Corazon Juliano-Soliman.
"Along with other government programs aimed to reduce poverty, Pantawid
Pamilya ensures that no one gets left behind in terms achieving holistic
and inclusive growth."
The assessment was based on the analysis of 1,418 poor households
eligible for the program from a survey covering 3,742 households in the
provinces of Lanao del Norte, Mountain Province, Negros Occidental, and
Occidental Mindoro. There are more than 3 million poor families with
more than 6 million children benefitting from the program.
Pantawid Pamilya provides cash grants to poor households to encourage
them to keep their children age 0-14 in school and have regular health
checks.
Pregnant mothers are required to avail of proper medical care and their
deliveries attended to by health professionals. Mothers are also
required to attend family development sessions where they discuss topics
on parenting and accessing social services in the community. (EHL)
--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
----------------------------------------------------------
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