PHILDEVFINANCE (old news)

Saturday, March 17, 2012

RCBC gets BSP nod to merge microfinance units

YUCHENGCO-LED Rizal Commercial Banking Corp. (RCBC) said it has secured
the Bangko Sentral ng Pilipinas (BSP) green light to merge two of its
bank subsidiaries.

In a disclosure to the stock exchange on Friday RCBC said "the Monetary
Board in its letter dated March 6, which was received by RCBC today
(Mar. 16), approved the request of RCBC's subsidiary Rizal Microbank,
[formerly] Merchants Savings and Loan Association, Inc. to purchase
certain assets and assume all deposit liabilities of Pres. Jose P.
Laurel Rural Bank, Inc."

In September, RCBC's board of directors approved the merger of J.P.
Laurel Bank and Rizal Microbank, a thrift bank, the latter will be the
surviving entity.

In a phone interview with BusinessWorld on Friday, John G. Deveras, RCBC
executive vice- president and head of strategic initiatives, said:

"Rizal Microbank will take in P200 million worth of J.P. Laurel's assets
and roughly P400 million worth of its deposit liabilities."

Rizal Microbank purchased J.P. Laurel's microfinance assets, Mr. Deveras
who also sits as the president of Rizal Microbank and Chairman of J.P.
Laurel Rural Bank said.

The merger will bring the total assets of Rizal Microbank to P900 million.

Asked if RCBC is still on track to meet its target of fully integrating
the two banks next month, he said: "Definitely. We are just waiting for
the central bank's approval, but we have started to integrate the
systems of the two banks since last year."

The two banks have been running under one management team, headed by Mr.
Deveras.

Mr. Deveras said he will resign as the president of Rizal Microbank by
end-April and he will be replaced by RCBC Senior Vice-President and Head
for Microfinance Ma. Lourdes Jocelyn S. Pineda.

Rizal Microbank, the surviving entity, will have the flexibility of a
thrift bank in terms of operations and services it can offer to the
public and the expertise of a rural bank in terms of microfinance.

Mr. Deveras earlier said that RCBC has infused some P500 million worth
of capital to support the bank's operations for this year and the next
as it is not yet expected to turn in profits for RCBC until 2014.

By 2014, Mr. Deveras said Rizal Microbank is expected to book earnings
and have a 15% return on equity.

Ms. Pineda earlier said that she targets to have 27 to 30 branches by 2014.

Currently, J.P. Laurel Bank has 10 branches in southern Luzon while
Rizal Microbank has eight branches in southern Mindanao.

RCBC ventured into microfinance -- the first large bank to do so -- in
July 2009 after buying J. P. Laurel Bank based in Batangas in February
2009 and Rizal Microbank, which had branches in southern Mindanao, in
May 2008.

RCBC shares closed at P42.25 apiece on Friday, 2.30% or 95 centavos
higher than its P41.30 close the previous day. -- Ann Rozainne R. Gregorio

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CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
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Friday, March 16, 2012

Jobs picture encouraging

Posted on March 15, 2012 11:17:20 PM

Jobs picture encouraging

EMPLOYMENT LEVELS were basically unchanged in January despite the entry
of more job-seekers, government data yesterday showed, as the economy
was able to generate 1.1 million additional jobs.

As a result, the number of unemployed barely moved at 2.922 million in
the latest Labor Force Survey (LFS), from 2.917 million last year. The
rate slightly eased to 7.2% in January from 7.4% in the same month last
year although this was statistically insignificant, the National
Statistics Office (NSO) said in a report.

Economists said the jobless rate should ease in the coming months
considering a rosy economic outlook for the year.

A total of 37.4 million Filipinos had jobs in January, up from 36.3
million last year and despite the labor force growing to 40.3 million
from 39.2 million. This came with a 3.2% hike in the number of salaried
jobs and an additional 2% in the number of self-employed.

Unemployment in Metro Manila stood at 12.2% -- the highest in the
country. In Central Luzon and Calabarzon (Cavite, Laguna, Batangas,
Rizal and Quezon), the rate stood at 9.7% and 8.5%, respectively.
Cagayan Valley posted the lowest jobless rate at 2.4%, the NSO said. A
third of the unemployed were high school graduates, while nearly a fifth
were college graduates.

Peter Lee U, economist at the University of Asia and the Pacific, said
higher government spending in third and fourth quarters of last year
contributed to the jobs increase. "The economy is expanding and the
government did what the people were telling them to do, to raise
government spending to pump-prime the economy," Mr. U said.

Based on National Statistical Coordination Board data, government final
consumption expenditure grew by 7.1% and 5.8%, respectively, to P137.70
billion and P124.27 billion in third and fourth quarter of last year.

Vicente R. Leogardo, Jr. director-general of the Employers'
Confederation of the Philippines, also credited government pump-priming.

"The pump-priming program of the government translates to economic
growth and more job creation," Mr. Leogardo said. "This is the reason
why there was a [lower jobless rate] recorded in January," he added.

The labor force participation rate went up to 64.3% from 63.7% last year
as the number of Filipinos 15 years and above increased to 62.7 million
from 61.5 million.

Workers in the services sector accounted for more than half (52.7%) of
the total employed. Workers in the agriculture sector accounted for
about a third (32.6%), while 14.7% were in the industry sector.

"The growth of employment may be attributed to increased private sector
investments and intensified public spending in infrastructure and
agriculture," Malacañang said in a statement.

The underemployment rate also went down, with 18.8% or 7.03 million of
those seeking longer work hours or a new job, from 19.4% or 7.05 million
last year.

Sought for comment, DBS Bank economist Eugene Leow said the "economic
situation in the Philippines is starting to look more optimistic,
leading to more investment and job creation."

"Notably, even though the labor force participation rate rose, job
creation was large enough that the unemployment rate actually fell to
7.2% in January 2012, compared to one year ago," Mr. Leow said in an e-mail.

Ruperto P. Majuca, National Economic and Development Authority assistant
director-general, said the LFS result was expected.

"As we had mentioned before, we have been expecting that the
improvements in the labor and employment situation will continue this
year," Mr. Majuca said in a text message.

"This administration, apparently, has been hitting GDP growth in the
right places. It will be recalled that last year, the economy generated
1.2 million employment even if GDP grew only moderately," he added. --
Daniel Anne Nepomuceno-Rodriguez

Wednesday, March 14, 2012

Philippine Business Registry (PBR)

The PBR is a government-initiated project that facilitates business
registration-related transactions by integrating the services of all
agencies involved in business registration such as the DTI, Securities
and Exchange Commission (SEC), Bureau of Internal Revenue (BIR), Social
Security System (SSS), Pag-IBIG Fund, PhilHealth, local government units
(LGUs), and other permit/license-issuing agencies.

These agencies' computerized registration systems, except those of most
LGUs in the meantime, are interlinked so that applicants need not
physically go to each agency to register their businesses. For LGUs
whose business permit processing system is not yet interlinked with the
PBR, applicants still need to get their business permits from the local
government where they wish to operate.

PBR accepts applications for sole proprietorships and partnerships and
corporations.

For sole proprietors, walk-in application thru DTI teller follows the
following steps:*

1. Applicant fills out the PBR application form and submits to DTI
Teller for processing.

2. DTI Teller secures applicant's Tax Identification Number (TIN). (If
there is an existing
TIN, PBR will validate against records).

3. Business Name (BN) Certificate and Employer's Registration Numbers
(ERNs)
are processed.

A Transaction Reference Number (TRN) is presented to Cashier for payment
of BN fee.

Official Receipt of Payment is presented to the DTI Releasing Officer
for the BN Certificate.
Applicant gets SSS, PhilHealth, and Pag-IBIG ERNs from DTI Teller.

4. Certificate of Registration or Employer ID can be secured from agencies
upon presentation of PBR-genarated ERNs.

For SEC-registered companies, walk-in application thru teller at DTI
Office or SEC follows the following steps:*

1. Applicant fills out the PBR application form and submits to the
Teller for encoding
and processing.

2. Applicant also submits photocopies of complete SEC registration
documents
(i.e., SEC registration certificate, Articles of
Partnership/Corporation). Original copies
are required for verification.

3. Teller transmits application for employer registration numbers (ERNs)
to SSS,
PhilHealth, and Pag-IBIG and applicant gets PBR-generated ERNs.

4. Certificate of Registration or Employer ID can be secured from agencies
upon presentation of PBR-genarated ERNs.

*Note: Only partnerships or corporations already registered with SEC can
apply.

25 M poor Pinoys receiving gov't health care

By Dino Balabo (The Philippine Star) Updated March 14, 2012 12:00 AM

MALOLOS CITY, Philippines – About 25 million poor Filipinos are now
enrolled under the Universal Health Care Program (UHCP) of the
government, Health Secretary Enrique Ona said yesterday.

Ona's disclosure came as he led the inauguration of the new facilities
of the Bulacan Medical Center (BMC) here, which he described as the best
health facility in the country operated by a provincial government.

"This year, almost all poorest Filipino families are enrolled in
PhilHealth,'' he said.

Ona said the national government is paying P12 billion annually for the
health insurance of at least 25 million Filipinos.

"It only shows na hindi lang slogan yung Universal Health Care program
ni Pangulong Aquino (It only shows that the universal health care
program of President Aquino is not just a slogan),'' he said.

During his visit, Ona led the inauguration of the BMC's new emergency
room, outpatient department complex and maternity extension ward.

Bulacan Gov. Wilhelmino Alvarado said the provincial government spent
some P31 million for the upgrading of the BMC facilities, aimed at
improving the operations and services of the hospital.

He disclosed plans to build new hospitals in the towns of Plaridel,
Obando, Pandi, Angat, Norzagaray, Marilao and the city of Meycauayan.

Business registry to boost Phl's global competitiveness

By Zinnia B. Dela Peña (The Philippine Star) Updated March 13, 2012 12:00 AM

MANILA, Philippines - Trade Secretary Gregory Domingo expects the
Philippine Business Registry (PBR), an online one-stop shop that allows
entrepreneurs to set up a corporation or partnership faster and at the
least cost, to boost the country's ranking in global competitiveness
surveys.

During the launch of the PBR at the Securities and Exchange Commission
yesterday, Domingo said the Philippines is aiming to rank within the top
50 countries in the Global Competitive index by 2016.

"With the PBR, we expect a significant improvement in our standing in
global competitiveness surveys," Domingo said, noting that business
registration has been picking up with more and more corporations setting
up shop.

Corruption, inefficient government bureaucracy, and inadequate supply of
infrastructure have remained the top three problematic factors for doing
business in the Philippines despite improved macroeconomic indicators.

The Philippines ranked 136th out of the 183 in the World Economic Forum
Global Competitiveness survey released in September 2011.

The PBR is a government-initiated project that aims to streamline
business registration process and cut the red tape by integrating all
agencies involved in business registration, such as the DTI, SEC, Bureau
of Internal Revenue, Social Security System, Home Development Mutual
Fund, Philippine Health Insurance Corp., and Local Government Units (LGUs).

Each of the agencies' computerized registration systems will be
interlinked so that applicants need not physically go to each agency to
register their businesses.

Domingo said PBR kiosks will also be installed in selected LGUs
nationwide to facilitate registration in far-flung areas.

Monday, March 12, 2012

Insurance for the masses pushed

By Ehda Dagooc (The Freeman) Updated March 12, 2012 12:00 AM

CEBU, Philippines - While only about 11 percent of Filipinos are insured
or have availed of risk protection, the government has moved to
encourage insurance companies to offer micro-insurance products for the
masses, that would have a maximum daily premium not exceeding P20.

The Insurance Commission (IC), together with the Department of
Finance-National Credit Council (DOF-NCC) have started this campaign via
a nationwide Financial Literacy roadshow.

DOF-NCC director Joselito Almario said the promotion of micro-insurance
in the Philippines is expected to heighten awareness of more Filipinos
to take formal insurance to protect their future.

Likewise, insurance companies in partnership with people's
organizations, micro-finance, cooperatives, and community groups will be
able to tap the greater number of people to get insurance premium in an
affordable and attractive product, that premium cost will not exceed P20
per day.

Because of this campaign, there are now about 27 insurance providers
that have partnered with different cooperatives, and community
organizations to offer insurance premiums to the mainstream market.

Because of this campaign, as of January this year, there are already 3.5
million approved policies in the micro-insurance category, in both life
and non-life insurance products.

Micro-insurance is considered to contribute to national poverty
alleviation strategy. Almario said in order to put this strategy into
action, the government has forged a partnership with the German
International Cooperation—Microinsurance Innovations Program for Social
Security (GIZ-MIPSS) and the Asian Development Bank-Japan Fund for
Poverty Reduction (ADB-JFPR) to enhance financial literacy on
micro-insurance, especially of the low-income sector.

Of the total 94 million population in the Philippines, about 25 million
of whom are in the poverty line or 26.5 percent. Only 2.9 million of the
25 million population who are in the poverty line are some kind of risk
protection or covered in insurance products, mostly are the informal
insurance schemes offered by cooperatives, or organizations in the
communities.

Despite the active stance of some insurance companies, and even
cooperatives to provide risk protection or insurance to the mainstream
Filipinos, this is still intimidate the low income sector, because of
the high cost of premiums, and strict requirement process.

This time, through this campaign, the micro-insurance products'
requirements are streamlined, that even a barangay clearance can be
accepted.

The campaign is expected to raise awareness of the majority of Filipinos
to get themselves insured, without sacrificing their daily necessity,
while a P20 daily premium requirement is affordable.

ADB-JFPR chief of party stressed that through this campaign, it is
envisioned that future micro-insurance advocates from will help address
the two causes of low insurance coverage among the low-income sector—the
lack of awareness of insurance and low financial literacy level.

Access to appropriate and affordable risk protection instruments for the
low-income sector faces obstacles: unaffordable and inadequate insurance
products, persistence of informal insurance schemes and low appreciation
of the importance of micro-insurance.

The government, through the initiatives of the IC and its partners,
continues the momentum of opportunities opened by the National Strategy
for Micro-insurance and the Regulatory Framework for Microinsurance
launched in 2010.

Recently, the group held a roadshow in Cebu, which sought to educate
representatives of both the public and the private sector about the
framework and status of micro-insurance in the Philippines, emphasizing
the respective roles each on can take in the advocacy of
micro-insurance. - THE FREEMAN

Sunday, March 11, 2012

Australia to provide P5-B dev't aid to Phl

By Pia Lee-Brago (The Philippine Star) Updated March 11, 2012 12:00 AM

MANILA, Philippines - Australia will provide over P5 billion in
development assistance to the Philippines for the current fiscal year,
focusing on economic growth, basic education, national stability and
human security.

Australian Ambassador Bill Tweddell said on Friday during the
celebration of International Women's Month that Australia's ongoing and
future assistance would benefit Filipino women.

The Australian-assisted program in Mindanao that helps improve local
road infrastructure has also tapped village-based women's groups to
maintain and rehabilitate their roads.

Around 300 women in San Francisco, Agusan del Sur work with their
respective barangays on this program to improve road quality, guarantee
all-weather access and cut transport costs, especially during harvest time.

In the last seven years, the Australian embassy, through its Direct Aid
Program (DAP), has provided P7 million to 29 projects directly
benefiting women.

The program provided livelihood opportunities and training assistance to
women across the Philippines, from the women potters in Sagada to the
traditional weavers of South Cotabato.

DAP also supports projects that help protect women from abuse. It
assisted the National Council of Women in the Philippines produce
literature to help prevent violence against women, and the Hospicio de
San Jose to build a sanctuary for abused and disadvantaged women.

Australia is also supporting women's essential role as peace-builders in
communities torn by conflict, seeking to foster a stable and secure
environment for the equitable development of all.

For instance, they help the Mindanao Commission on Women, which has
formed more than 60 youth peace circles, where young women meet and work
towards integrating peace objectives in school and local policies.

"It is encouraging to see women all over the world are increasingly
empowered in so many aspects of their lives – career, family, health and
education. The situation has improved over recent years, though there is
still work to be done. As widely recognized, there is no factor more
important for the development of a country than the empowerment of its
women," Tweddell said.

The ambassador noted that "actively supporting women's full
participation in economic, social and political life is essential for
economic growth, good governance, reducing poverty, and meeting all the
Millennium Development Goal targets. The Australian government is proud
to support Filipino women, not just during women's month but also
throughout the year. We do this through a range of activities that
empower and strengthen women leaders and allow their voices to be heard."

This year, in line with the Philippine Commission on Women's theme for
this year's women's month – Women Weathering Climate Change: Governance
and Accountability, Everyone's Responsibility – the Australian embassy
is hosting a forum, in partnership with Oxfam, on the transformative
leadership role of women during disaster response and rebuilding efforts.

The Australian government's scholarship program provides opportunities
to Filipino women to excel academically and in their professions.

For example, Nastassja Ramos, a woman with a disability, is currently at
Monash University in Melbourne studying for a double master's degree in
Journalism and international relations.

"My personal research points me to Australia as the best in first world
education. There I can hone my skills as a journalist, and develop other
skills necessary for me to fulfill my dream of helping the
differently-abled in our midst," Ramos said.

Australia is a long-standing development partner of the Philippines and
the country's largest bilateral grant aid donor.

--
---------------------------------------------
CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline Phones: +63495010127 and +63495762924
Cellphone: +639152919580
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Family website: http://www.anifamily.net
------------------------------------------

PhilHealth defers plan to hike premium contribution of OFWs

By Sheila Crisostomo (The Philippine Star) Updated March 11, 2012 12:00
AM Comments (1) View comments

MANILA, Philippines - Bowing to public pressure, the Philippine Health
Insurance Corp. (PhilHealth) has deferred the plan to increase the
premium contribution of overseas Filipino workers (OFWs).

PhilHealth president and chief executive officer Eduardo Banzon said
under Circular No. 07, series of 2012, they have amended an earlier
issuance that prescribed the new contribution rates for different paying
sectors for 2012 and 2013.

"With the deferment of the new premium rate, OFWs need only to pay
P1,200 as annual payment for 2012. The new rate of P2,400 per year will
take effect Jan. 1, 2013," Banzon noted.

In recognition of the contributions of OFWs to the country's economy,
they have been paying only P900 in annual premium since 1995 while
members from other sectors were charged P1,200 a year.

But under a previous circular, the minimum annual premium for OFWs,
individually paying members who belong to the informal sector of the
society and indigents, will be P2,400 starting July 1. This is intended
to raise funds for the expansion of PhilHealth benefit packages.

Banzon said they took into consideration the global crisis that had
resulted in the repatriation of many OFWs.

PhilHealth decided to defer the adjustment after consultations with
various civic groups and OFW organizations like Filipino migrant
workers, Catholic Bishops' Conference of the Philippines- Episcopal
Commission for the Pastoral Care of Migrant and Itinerant People,
Philippine Association of Service Exporters Inc., Kapisanan ng mga
Kamag-anak ng Migranteng Manggagawang Pilipino and the Blas Ople Center.

Banzon added that to encourage OFW-members to engage with Philhealth for
a long time, they can avail of a two-year lock-in period wherein their
annual premium will be computed at P1,200 or a total of P2,400.

He said OFWs would have to sign a policy contract to be able to avail of
this special rate. And when the policy contract expires, the prevailing
rate per year would then be applied.

Banzon assured the workers that the new rates would mean more benefits
for them and their dependents in the country.

"The primary care benefits will feature expanded outpatient providers in
which every PhilHealth member will be assigned to facilities and primary
care physicians. Implementation will be enhanced by introducing a system
wherein release of payments is tied to performance, with incentives for
additional quality and quantity indicators," he said.

Saturday, March 10, 2012

ATM provider raises capital

AN AUTOMATED teller machine (ATM) provider has raised fresh capital from
selling shares to two foreign investors, according to a statement
released on Friday.

"ENCASH (Electronic Network Cash Tellers, Inc.)... is pleased to
announce that the company has raised equity capital from Rural Impulse
Fund II S.A., SICAV-SIF, a fund managed by Incofin Investment Management
and from responsAbility Ventures I Services AG, a fund managed by
responsAbility Social Investments AG for collective investments
schemes," the company said.

The capital infusion will allow Encash to expand its business.

In a phone interview on Friday, ENCASH President Eric J. Severino said
the two funds now own a total of "40% equity share" in the company.

According to Incofin's Web site, Incofin and responsAbility invested a
total of $2.56 million in ENCASH.

"We are pleased to partner with Incofin and responsAbility… The funds
infused by the investors will enable us to expand and serve more rural
Filipinos," Mr. Severino was quoted as saying in the statement.

For her part, Sara Vermeir, Incofin private equity manager, said in the
same statement: "We strongly believe that by placing ATMs (automated
teller machine) in remote areas, improves access to financial services
in the rural community."

"ENCASH is a young but very promising company. We will further support
them along their growth path and will be taking a position in the board
of directors," she added.

Anand Chandani, responsAbility regional director, in the same statement
said: "We are excited about the opportunity to help ENCASH scale its
business and broaden its reach in providing access to finance for rural
and underserved Filipinos."

ENCASH deploys retail ATMS in rural areas with a total of 140
cooperative and rural banks as partners. It has 337 ATMs deployed
nationwide as of end-January.

Based on its Web site, Incofin is a fund manager with six funds
amounting to 300 million euros, or $445 million, that invests in
microfinance institutions (MFIs) in developing countries.

Incofin's Rural Impulse Fund II is a 120-million euro ($163 million)
fund set up in 2010 in a bid to alleviate poverty in rural areas by
investing in MFIs

responsAbility, meanwhile, is a social investments company with a total
of $1 billion assets under management, according to its Web site.

Established in 2003, the company focuses on microfinance financing,
small and medium enterprise financing, fair trade and independent media.
-- A. R. R. Gregorio

Higher deposits mirror confidence in financial system

HIGHER TOTAL bank deposits were recorded last year as the public
remained confident in the financial system, the state-deposit insurer
said on Friday.

Deposits were up by 4.88% to P5.37 trillion last year from P5.12
trillion in 2011, the Philippine Deposit Insurance Corp. (PDIC) said in
a statement.

"The growth in deposits was brought about by the depositing public's
confidence in the local banking system," PDIC said.

Deposits in commercial banks totaled P4.75 trillion, or 88.4% of the
total amount; followed by those held by thrift banks, P496.6 billion;
and rural banks, P125 billion.

Savings deposits grew by 8.3% to P2.59 trillion he previous year.

Time deposits and long-term negotiable certificates of deposit, on the
other hand, declined by 4.1% to P1.71 trillion from P1.78 trillion.

Demand deposits, PDIC said, rose by 13.3% to P1.07 trillion.

Meanwhile, in terms of type of depositors, aggregate deposits maintained
by individuals rose by 3.5% to P3.02 trillion from. It accounted for
56.1% of total deposits.

Deposits from corporations were steady at P1.54 trillion.

Lastly, government deposits rose by 22.9% to P624.9 billion. -- A. R. R.
Gregorio

Bankers Cite Role Of Micro-Entrepreneurs

Bankers Cite Role Of Micro-Entrepreneurs
March 9, 2012, 11:10pm

MANILA, Philippines — Local bankers have underscored the important role
of micro-entrepreneurs in the development of the countryside.

During the micro-entrepreneurs' convention held at the LandBank Plaza,
Land Bank of the Philippines (LandBank) president Gilda Pico cited the
importance that microenterprises play in the economic development of the
country.

She also noted LBP's thrust in helping micro-entrepreneurs like the
P21.b Billion loan portfolio exclusively meant for their use and the
Gawad Entrep Awards.

Dan Songco, president and CEO of the PinoyME Foundation said the PinoyME
Consortium has set a goal of reaching a funding of P5 Billion in order
to improve the lives of five million poor Filipinos.

Ambassador Jesus Tambunting, president and CEO of Plantersbank, told the
story of how Plantersbank wove social responsibility and rural
development in its banking services.

Citi Country Officer Sanjiv Vorah cited the importance of small
businesses to the economy and the various challenges that
micr-oentrepreneurs face.

Vorah said that Citi has established the Citi Microentrepreneurs Awards
in order to inspire people to do businesses and for micro-entrepreneurs
to continue with their struggles to keep their businesses running.

Mr. Patrick Ang, Vice President for Home Voice Acquisition and
Microbusiness for PLDT KaAsenso, highlighted the importance of
connectivity in today's world and explained the many services packaged
in their program.

The EchoStore's Ms. Jeannie Javellosa talked about developing products
for customers through her marketing talk. Mark Ruiz, co-founder of
Hapinoy, talked about the application of the value chain concept in the
country. (EHL)

Friday, March 9, 2012

Coco sugar’s potential should not be wasted

Coco sugar's potential should not be wasted

Published : Friday, March 09, 2012 00:00 Article Views : 83 Written by :
James Konstantin Galvez

The Department of Agriculture (DA) urged producers of coconut sap sugar
to ensure the quality of their products to maximize its full potential
and seize a big chunk of the $1-billion export market.

In his speech during the First National Coconut Sap Sugar Congress,
Agriculture Secretary Proceso Alcala cautioned stakeholders to be
vigilant and must not compromise the quality of their products so coco
sap sugar would not suffer the same fate as nata de coco or coconut gel.

Decades back, coconut gel's demand was great in countries like Japan
because of its supposed health benefits. But businessmen who tried to
cash in on the high demand for coconut gel failed to assure the quality
of the product, which eventually led to the collapse for the market of
the product abroad.

The DA chief also said that producers and exporters should standardize
the process of production, secure certification from reputable organic
farming certification bodies, and ensure enough production volume and
sustainability of supply.

The global market for coconut sap sugar is now about $1 billion,
dominated by Indonesia, Thailand and the Philippines. Alcala said that
there is an increasing demand for coco sap sugar as alternative
sweetener both in the local and international markets because of its
health benefits.

Citing the 2007 test findings of the Food and Nutrition Research
Institute of the Department of Science and Technology and the DA's
Philippine Coconut Authority, Alcala said that coco sap sugar has a low
glycemic index of about 35, making it a natural and safe sweeter, which
is ideal for diabetics.

In the local market, coconut sap sugar has a viable market with more
than 8 million Filipinos diagnosed with diabetics. There is also a great
demand for coco sap sugar in international markets such as the United
States, Middle East, Europe, Australia and New Zealand, among others.

Erelyn Manohar, chairperson of the Coconut Sap Sugar Congress, said that
currently there are 36 coco sap sugar producers nationwide, mostly in
Mindanao, and the rest in Luzon and Visayas. She said that Region 10
(Northern Mindanao) has 11 producers, followed by Region 12
(Soccsksargen) with seven, while Regions 13 (Caraga) and 11 (Davao) have
five producers each.

She said that in 2011, the country had an estimated 340 million bearing
coconut trees, according to DA's Bureau of Agricultural Statistics. The
industry is only aiming to utilize 2.3 million bearing trees to produce
the targeted 210,000 kilograms of coco sap sugar.

Manohar added that this figure will be increased gradually yearly
through 2016, when production would total 17 million kilograms of coco
sap sugar, but still utilizing only a minimal portion at 0.055 percent
of the total bearing coconut trees of the country, so as not to affect
the coconut oil or copra industry.

Quirino cassava cooperative sets 500-hectare expansion

The use of a flatbed drier (FBD) by a farmer’s cooperative planting cassava in Quirino province has resulted in a big increase of areas planted to the crop.

The Abrasa Multi-Purpose Cooperative (AMPC) in Diffun, Quirino has been into cassava planting to supply San Miguel Corp. for the company’s feed processing needs. It started farming cassava in 2008 with 20 hectares. But with the discovery that an FBD can be effectively used to dry cassava, especially during the rainy season, the cooperative expanded their lands planted to cassava to 200 hectares. They plan to add another 500 hectares this year to be also devoted to cassava.

The FBD used by the cooperative was provided by the Department of Agriculture-Philippine Center for Postharvest Development and Mechanization (DA-PhilMech). PhilMech Executive Director Ricardo Cachuela said that the cooperative discovered in July 2010 that FBDs can be used to efficiently dry cassava, which prompted more farmers in Quirino to plant the perennial crop. The use of FBDs also allow cassava farmers to make harvests all year round. Likewise, since FBDs use biomass to generate heat, the cooperative need not purchase fuel to operate the dryers.

“When we don’t have yet the flatbed dryer, we prevent those who are scheduled to harvest, we reschedule them so that we have enough time to dry when the sun is up. But when we discovered the flatbed dryer, they can now harvest anytime. Shrinkage of cassava was also minimized,” said Jomar Corpuz, the operations manager of AMPC.

Fresh or undried cassava are bought by the cooperative from its members. The cooperative will then cut the undried cassava using a palay thresher. The freshly-cut cassava will then be dried using an FBD to achieve the required 14-percent moisture content. Before discovering the use of the FBD to dry cassava, the cooperative simply relied on sun drying, which was tedious, time consuming and made the freshly cut cassava open to contamination from the air.

With more efficient drying operations, the cooperative delivers 100 metric tons of dried cassava to the San Miguel Corp. plant in Echague, Isabela province.

With the expansion of its plantations, the cooperative will increase its frequency of deliveries of dried cassava to every week.

While cassava is also a staple, it has many industrial uses and can be used to as feed for livestock. It is also a good source of bioethanol. The DA is pushing for the expansion of areas planted to cassava to supplement corn as an animal feed. The wonder of cassava is it can be planted in areas where there is a not much water and along hilly areas.

DA-PhilMech is also cooperating with a local manufacturer of farm machinery, Agricomponent Machinery and Construction Corp., for the development of a drying system for granulated cassava, which is used as an animal feed ingredient. Agricomponent is based in Cauayan City, Isabela and is an accredited DA-PhilMech manufacturer of FBDs and multi-fuel biomass furnace.

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Banking Experts: PHL must bolster, mainstream Islamic banking

Experts: PHL must bolster, mainstream Islamic banking

THURSDAY, 08 MARCH 2012 20:59 ESTRELLA TORRES / REPORTER

AMID the global financial crisis that has weakened US and European
economies, Islamic bank experts urged the Philippines to relax tax and
regulatory landscapes to tap the US$1 trillion worth of
Shariah-compliant assets by mainstreaming the Islamic banking system.

The experts, however, said lingering perceptions that Islamic banks act
as financial instruments of terrorists and restrictive regulatory and
taxation rules in the Philippines are the major roadblocks to the
mainstreaming of Islamic banking which have been fueling investments and
growth in many countries including Britain and Malaysia.

British Ambassador to the Philippines Stephen Lillie said mainstreaming
Islamic banking in the country could fuel growth and development in the
poverty- and conflict- stricken provinces in Mindanao.

He said many Filipino Muslims feel exclusion from the financial
activities in the country and this has contributed in the worsening
poverty situation in Mindanao.

"There is an increasing opportunity of Islamic banking [now being
mainstreamed] in the network of international economic relations. This
is one way to tap liquidity from the Islamic world," said Ambassador
Lillie in an interview with the BusinessMirror during a British Embassy
forum on "Enabling Islamic Finance in the Philippines" held Thursday at
the Mandarin Hotel in Makati City.

According to Al-Amanah Islamic Investments Bank of the Philippines,
Muslims comprise 10 percent of the 90 million people in the Philippines.
The bank has its main branch in Zamboanga City and has nine branches
across Mindanao. Its office in Makati was built in 1990 and is now
undergoing rehabilitation. It is the only Islamic bank in the country.

Maharlika Alonto, head for Accounting and Finance of the Al Amanah Bank,
said the lack of legal and regulatory framework for the Islamic banking
system serves as a major roadblock in mainstreaming Islamic banking in
the country.

In her speech, she cited the demographics of the Autonomous Region of
Muslim Mindanao (ARMM) which is plagued with the lingering problems of
poverty and Muslim extremism. "Islamic finance system is perceived to be
a means to Islamic extremism."

She said domestic laws have to be harmonized with the global measures to
mainstream Islamic financial systems to gain from the momentum of
liquidity in the Islamic economy.

Alonto said the Bangko Sentral ng Pilipinas still has no detailed
provision on Islamic banking system and there is no Islamic window for
investments.

On tax implications, the government, she said, imposes double taxation
on the transfer of capital assets and the Philippine Deposit Insurance
Corp. (PDIC) does not cover Islamic deposits.

Alonto said there is a need to establish a National Shariah Advisory
Council in the Philippines, similar to the one established in Malaysia,
to push for Islamic banking in the country.

She said the government has to support measures such as financial
literacy on Islamic finance and technical capacity build-up on Islamic
banking.

Speaking on the experiences of Britain that has levelled the playing
field for Islamic banking systems through equal taxation and providing
incentives for Islamic mortgages, Ambassador Lillie said that Islamic
finance will grow and Southeast Asia will be a top source of growth.

"As we look at opportunities for Islamic finance in the Philippines, we
look to the UK, a predominantly Christian country, as a reference of how
this sector can be set up and developed in another predominantly
Christian market," said the British envoy in his speech during the forum.

"Islamic finance has grown rapidly in the past decade, and the city of
London, with its commitment to financial innovation and outstanding
global reach, has been a big part of this. As the Philippines seeks to
expand its investor base, it should look seriously at how it could
follow our example to attract more funds from Muslim countries by
offering Shariah compliant products."

He said global Islamic finance has grown significantly during the last
decade. In 2006–2009, Sharia-compliant assets doubled to more than $1
trillion. Sukuk bond issuance, Islamic debt and equity papers, grew 50
times from 2001 to 2010 despite slow global growth in the aftermath of
the 2008 global financial crisis.

Wasim Saifi, global head for Islamic banking of Standard Chartered PLC,
said the rapid growth of Islamic banking made it a part of the global
mainstream banking system. Although with only a one percent share of
global banking, its US$1 trillion Sharia assets made it part of the
mainstream and not just a niche in the global banking system.

He said there is rapid growth in the penetration level of Islamic
banking due to the high liquidity of the Islamic world.

"Islamic banks are becoming more sophisticated in terms of service,
technology and product range," said Saifi.

But he said the rapid growth of the Islamic banking system is due to the
widening interest of the young generation of Muslims who are trying to
relate with their religious identity and the increasing support of many
governments for Islamic banking through regulatory reforms.

Reforms boost ranks of microcredit clients

Posted on January 11, 2012 10:56:38 PM

THE NUMBER of microfinance borrowers inched closer to the one million
mark last year amid sustained policy reforms by the Bangko Sentral ng
Pilipinas (BSP).

In the "2011 Year-End Report on BSP Financial Inclusion Initiatives"
posted on its Web site yesterday, the central bank pointed out the
number of microfinance borrowers rose by 3.33% to 963,717 as of June
last year from 932,622 as of September of the previous year.

Outstanding loans jumped to P7.149 billion as of June from P6.532
billion as of September.This was despite a slight decline in
microfinance banks to 198 last year from 202 in the previous year.

The BSP also said it received 100 applications to establish 700
micro-banking offices after releasing Circular 694 in October 2010 that
allowed banks to establish MBOs.

Summing up its work in the area of financial inclusion last year, the
BSP said it continued to promote access to financial services through
enabling policies, among others.

"... the BSP has assiduously and steadily worked through the areas of
policy and regulation; training and capacity building; and promotion and
advocacy," it said.

The BSP issued new circulars last year to "further solidify the efforts
towards financial inclusion," which envisions access by the poor to
formal financial services such as credit and insurance.

The central bank issued Circular 706 in January 2011 that allowed banks
to use a risk-based system for classifying clients (low, average, high
risk) and to contract out to third party service providers certain
functions such as face-to-face know-your-customer that is usually done
when new clients open deposit accounts.

Circular 725 issued in June 2011 governs the relationship between banks
and their related microfinance nongovernment organizations (NGOs). The
rules state that the bank and the NGO must observe contractual
agreements and no bank personnel shall hold a full-time job in the NGO.

The BSP also updated the implementing rules of the Truth in Lending Act
by issuing Circular 730 in July. The new rules require banks to charge
interest on the outstanding balance of a loan at the start of the
interest period.

It issued the implementing rules to provisions in Republic Act 10000 or
the Agri-Agra Reform Credit Act that affect banks.

The central bank also doubled the existing cap on microfinance loans to
P300,000 to allow banks to provide more financing to clients.

Moving forward, the central bank said it will do the following:

• continue to review consumer protection principles as possible
regulatory tools;

• establish a comprehensive financial inclusion data framework to
monitor progress and inform policy making; and

• enhance the role of non-bank financial institutions in financial
inclusion.

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Lawmaker seeks probe on increase in PhilHealth premiums

A LAWMAKER has sought a probe on the 100% increase in members'
contribution imposed by a state-owned insurance corporation despite the
government's "generous" budgetary support, according to a statement
released yesterday.

Senator Ralph G. Recto filed Senate Resolution (SR) 709 asking the
committees on government corporations and public enterprises, and the
committee on health to spearhead the probe on Philippine Health
Insurance Corp. (PhilHealth) Circular 22-2011.

The circular doubled the insurance company's premium quarterly
contributions for new members to P600 from P300. Also affected by the
hike are members who are earning a minimum of P25,000 a year based on
their income tax returns.

"The planned increase in PhilHealth contributions is unnecessary,
nevertheless I'm still asking the proper Senate committees to look into
this and invite its officials to give their side," Mr. Recto was quoted
as saying in the statement.

Sought for comment, PhilHealth Executive Vice-President and Chief
Operating Officer Alexander A. Padilla said that the hike in premium
collections from members will be offset by benefits due to them.

"The increase in benefits is more than what we would be asking," Mr.
Padilla said in a telephone interview yesterday.

The state insurer sees some P40 billion in total collections after the
increase, but total benefits to be given out will be at around P60
billion, he told BusinessWorld.

Mr. Recto, however, said that PhilHealth has a P110-billion cash stash
in the form of retained earnings, while the government allotted some P12
billion in subsidies under the General Appropriations Act this year.

"From January to November in 2011, PhilHealth was among the top agencies
that received the biggest slice of the P45.205-billion subsidies given
out to state-owned corporations," he added.

"If these amounts are not enough to turn in a good service and make
health care more affordable to a greater number of people, the Senate
should at least have an idea of what really ails PhilHealth, whether
it's shortage of funds or loss of public service appetite," the lawmaker
added.

PhilHealth's Mr. Padilla assured that the planned "increase in total
benefits have already taken into account tapping into their reserves."

Nevertheless, SR 709 asked PhilHealth officials to present detailed
financial statements of the state insurer in order to determine the
"need to increase" premium contributions.

Meanwhile, PhilHealth yesterday launched a new Web site
(www.philhealth.gov.ph) that makes registration, claims eligibility
verification, online mapping, premium reporting and employee
transactions services available online.

The process does away with the hassle of filling out forms that
intimidate most of their targeted beneficiaries, said Dr. Eduardo P.
Banzon, PhilHealth President and CEO. "IT (information technology) is
not just a tool to facilitate processes," Mr. Banzon said, "but also a
powerful equalizer for the poor."

He added that they will release a version of the Web site in the
vernacular in the next two months.

PhilHealth piloted the use of E-Claims Project with Quirino Memorial
Medical Center (QMMC). Arnold Gaspar, the QMMC billing department
assistant head, said that the program cut payment of claims to patients
to three weeks, or around 21 days from the previous 60 days.

As of September 2011, PhilHealth tallied around 27.7 million members,
with 50.7 million dependents for a total of 78.3 million Filipinos. --
Antonio Siegfrid O. Alegado with a report from Mariae Francesca C. Ramos

PhilHealth allots P26B for the poor

STATE-RUN Philippine Health Insurance Corp. (PhilHealth) has allotted
P26 billion worth of benefit packages for poor Filipino families, a
government health official yesterday said.

"PhilHealth has allotted around P26 billion worth of medicines for
outpatient benefit packages, [which are] equivalent to P500 per family
per year for 5.2 million families under the National Household Targeting
System for Poverty Reductions," the Health department's National Center
for Pharmaceutical Access and Management (NCPAM) program director Ma.
Virginia G. Ala said in an interview after a Senate oversight hearing on
cheaper medicines.

She said these would be used to ensure universal access to quality
essential medicines as envisioned by Republic Act (RA) 8293 or the
Cheaper Medicines Act.

This is on top of the NCPAM's funding sourced from the Department of
Health's annual budget to make affordable quality drugs available, Ms.
Ala added.

At the hearing, she reported to the Senate committee on trade and
commerce that only 201 out of 900 medicines were covered by the Cheaper
Medicines Act.

Senator Manuel B. Villar, trade and commerce chairman, expressed concern
since multinational drug companies lobbied to lessen the coverage of the
law when the Implementing Rules and Regulations were created.

"I was wondering why only 201 out of 900 medicines are covered by the
Implementing Rules and Regulations. It is lacking, we need to expand
it," Mr. Villar said in an interview after the hearing.

He added he will look at how to give more teeth to the law and its
implementation. -- Antonio Siegfrid O. Alegado

Thursday, March 8, 2012

Thrift banks cautious in face of risks

THE CHAMBER of Thrift Banks (CTB) remains "optimistic" on industry
prospects, but expects slower growth this year in the face of a
potential spillover from the euro zone crisis and rising oil prices
stoked by tensions between Iran and the west.

"Despite the headwinds from Europe, the US and threats of higher oil
prices, the environment locally is much more favorable for both
consumers and lenders," said CTB President Patrick D. Cheng, president
and chief executive officer of HSBC Savings Bank, Inc., during the
group's media briefing yesterday at the RCBC Plaza in Makati City.

At the same time, however, he admitted that "as much as we want the
thrift bank industry to maintain the double-digit growth it has shown in
the past years, it may be difficult for the industry to sustain that
growth today amid the headwinds from the external environment...So, we
expect the industry to post a high single-digit growth this year."

Housing and auto loans business will remain a primary growth driver for
the thrift bank industry this year, CTB Treasurer and RCBC Savings Bank
President/CEO Rommel S. Latinazo said in the same event.

"Housing will be a major outlet of business of thrift banks this year
and we are seeing good activity in that segment...," Mr. Latinazo said.
"We will also focus on growing our auto loans business, which did well
last year despite auto supply disruptions caused by the earthquake that
hit Japan and floods in Thailand last year," he added.
"Aside from that, we also see opportunities in other industries...we
expect to sustain the growth of the MSME (micro, small and medium
enterprises) industry which we have been catering to in the countryside."
He also said the industry is bullish on its lending business in other
segments like agricultural, manufacturing, transportation, construction
and tourism, among others.
More challenging now
However, thrift banks have to be innovative amid a low interest rate
environment that could erode interest income and growing competition in
products and services for the same market, Mr. Cheng said.
"The low borrowing rates now is not only an opportunity for consumers,
but an opportunity for thrift banks to expand their business as well,"
he said.
As of end-2011, the number of thrift banks in the country had been
reduced to 71 from 73 the preceding year after troubled Banco Filipino
Savings and Mortgage Bank and LBC Development Bank were placed under
receivership by the Bangko Sentral ng Pilipinas, Mr. Cheng said in his
opening remarks for the briefing.
In spite of the lower number of industry players, thrift banks continued
to grow the number of branches to 1,409 from 1,346 the year before, he
noted.
Deposit accounts of the whole industry totaled 4.1 million last year,
Mr. Cheng recounted without providing comparative 2010 data. Savings and
mortgage banks accounted for 40%; stock savings and loan associations,
30%; private development banks, 26%; and micro finance-oriented banks, 4%.
Total deposits rose just 0.68% to P468.06 billion as of end-November
2011 from P464.88 billion the year before.
Thrift banks' loan portfolio expanded by 8.4% to P364.55 billion from
P336.15 billion, also as of end-November, while total assets of the
industry grew by 0.22% to P579.06 billion from P577.81 billion in those
11 months.
As of end-November, non-performing loan ratio (NPL) -- soured accounts
in proportion to total loans -- improved to 6.46% from 8.41%, while
non-performing asset ratio (NPA) likewise improved to 7.44% from 8.95%.
NPL loan coverage ratio of thrift banks grew to 57.99% from 50.77%,
while NPA coverage improved to 37.67% from 31.51% as of end-November.
"The stronger coverage ratios are indicative of thrift banks' resolve to
provide adequate buffers against unexpected losses amid uncertainties in
the financial environment," Mr. Cheng said in his speech.
Thrift banks' capital adequacy ratio -- a key measure of banks'
financial strength -- stood at 15.53% as of end-June, well-above the
central bank's 10% minimum requirement. -- Ann Rozainne R. Gregorio

One Network Bank bares expansion plan in Visayas

DAVAO CITY -- One Network Bank is exploring options to expand in the
Visayas through a possible merger with an Iloilo-based rural bank or by
setting up its own branches, the head of the Davao City-based bank said
in a statement over the weekend.
However, Alex V. Buenaventura, One Network Bank president, declined to
identify the rural bank in order not to preempt current negotiations.

At the same time, he explained that, in case the talks with the rural
bank fails, One Network Bank would still pursue its plan to set up
branches in Iloilo.

Mr. Buenaventura said it is actually cheaper for the bank to set up a
new branch, with about P7 million in capital expense for each office,
compared to hefty up-front costs of a merger.

But he also said merging with the local bank will mean a ready clientele.

"Another advantage of merging with a local rural bank is that we can use
our five licenses to set up five more branches in Mindanao," Mr.
Buenaventura explained, pointing out that under central bank
regulations, a bank can apply for five branches at a time.

In search of growth

The bank has been studying the Visayas market since late-2010, when it
started contemplating expansion in the area.
It had earlier cited areas in Iloilo for prospective branches as Iznart
street in Iloilo City as well as the towns of Oton, Tigbauan, Miag-ao,
Sta. Barbara and Oton.

Nelson L. Billena, bank branching head, had said earlier that the bank
will continue to look for growth areas where it could set up branches,
including areas that have no bank at all.

"Our desire is to reach out to communities that are growing, which need
modern banking services," he said.

Late in January, the bank held a soft opening of its Makati City branch,
the first outside Mindanao. The bank decided to put up a branch in the
country's premier financial center to serve the banking needs of its
parent Consunji Group.

The bank also opened its branches in Esperanza, Sultan Kudarat and in
Balingasag, Misamis Oriental.

Next month, the bank also plans to open branches in Sangali, a fishing
port in Zamboanga City, and in Butuan City.
Mr. Buenaventura added that the bank is looking at renovating key
branches, particularly those that have smaller offices.
One Network Bank also maintains branches in Davao del Norte, Davao del
Sur, Davao Oriental, Compostela Valley, North Cotabato, South Cotabato,
Sarangani, Agusan del Norte, Agusan del Sur, Surigao del Norte, Lanao
del Norte, Bukidnon, Misamis Occidental, Zamboanga del Norte, Zamboanga
del Sur and Zamboanga Zibugay. -- Carmelito Q. Francisco

E-vehicle backers call for incentives

THE GOVERNMENT must catch up with electric vehicle developments by
lifting the tax burden on investments in the green transport sector,
industry leaders yesterday said.

Government policies and programs, said speakers at a conference
organized by the Institute for Climate and Sustainable Cities (ICSC),
are also key to spurring consumers and public transport operators to
convert from fossil fuel-powered vehicles, which in turn will cut down
carbon emissions.

"The government is two steps behind in helping the electric vehicles
sector ... What we need from the government is a serious partnership,"
said Yuri P. Sarmiento, E-Jeepney Transport Corp. CEO.

He cited the lack of support infrastructure, inadequate policies,
manufacturing constraints, and low social acceptance as barriers to the
growth of the alternative fuel vehicle (AFV) sector.

The government, Mr. Sarmiento said, can help by supporting a bill
designed to give incentives to both electric vehicle makers and owners.

"We are not asking for the government to subsidize the cost of the
electric vehicles," he said.

Senate Bill 2856 is seen to bring down the cost of electric jeepneys,
for example, by at least 20% by offering nine-year excise tax and duty
exemptions to AFV assemblers and parts producers as well as importers of
completely built AFVs.

The proposed bill will also exempt them from paying value-added tax on
raw materials, spare parts, components and capital equipment used in the
production of AFVs for nine years.

"An electric jeepney costs around P700-800,000 after all the taxes, but
without taxes, it can be brought down to P400-500,000, which is the cost
of a new fuel-engine jeepney," Mr. Sarmiento claimed.

Owners of electric vehicles, meanwhile, under the bill will enjoy
priority registration and franchise applications, exemption from the
number-coding scheme and free parking spaces in select establishments.

"It's a question of policies and incentives for developing the
technology for electric vehicles. In the UK, we have free charging
zones, so that's a 100% discount for consumers right there," said Garett
Emmerson, chief operating officer of Streets and Traffic for London, in
detailing the experience in Britain.

E-jeepneys, while requiring a hefty initial investment, will help
drivers and operators of the public transport save money in the long term.

Fully charging the batteries for a 100-kilometer run will only cost
P160-220, yielding a P12-P16,000 savings per month by eliminating fuel
consumption, Mr. Sarmiento said.

"If you think about it, the savings from one month can send one child to
school. That will help a lot of jeepney drivers with families," he claimed.

Wednesday, March 7, 2012

PNB-Allied Bank integration seen in 18 months

By: Doris C. Dumlao

Philippine Daily Inquirer

Wednesday, March 7th, 2012

Philippine National Bank and Allied Bank expect to complete their full
integration within the next 18 months, creating the country's
fourth-largest private bank and generating more than P1 billion in
yearly cost savings for the banking unit of tycoon Lucio Tan.

Shareholders of both PNB and Allied Bank on Tuesday approved the revised
terms of the merger via a share-for-share swap transaction, a union
where PNB will be the surviving entity.

In a joint PNB-Allied Bank briefing, PNB chairperson Florencia Tarriela
said that for PNB, 2011 was better than the previous year, with the bank
growing its profit by about 20 percent year on year.

"It should be a much better this year (2012)," Tarriela said, even while
the bank had to work hard on its integration with Allied Bank.

"It's like building a house. There are some things you need to work on,"
she said.

The two banks assured their respective stockholders that the synergies
arising from the broadened network, diversified deposit base and
improved scale would benefit shareholders.

After obtaining approval for the revised merger terms, PNB president
Carlos Pedrosa told shareholders that PNB-Allied Bank would next work on
getting the approval from the regulators—the Bangko Sentral ng
Pilipinas, Securities and Exchange Commission, Philippine Stock
Exchange, Bureau of Internal Revenue and Philippine Deposit Insurance
Corp. The effectivity of the merger would be the first day of the month
following the approval by the SEC, he said.

The combined entity will have a distribution network of 646 branches
nationwide and total assets of P514 billion, the fifth-largest among
local banks (including Land Bank) and the fourth among privately owned
lenders. It will also have the largest international footprint across
the Asia-Pacific region, Europe, the Middle East and North America. PNB
also aims to regain leadership in the remittance business, Pedrosa said.

Allied Bank president Anthony Chua, who heads the integration of the two
banks, said full integration would likely happen in 18 months.

PNB senior executive vice president Carmen Huang said the group was
expecting to save some 8-10 percent of the combined expenses of the
bank, translating to more than P1 billion per year, once full
integration is achieved.

In a report to shareholders, PNB said savings would be generated from
"branch re-engineering, economies of scale, consolidation of overlapping
systems and corporate indirect overheads, realignment of front offices
and optimization of back office processing and support functions."

The target is to reduce the cost-to-income ratio to at least 50 percent
from the 61 percent ratio at present, Huang said.
Chua said the combined entity would likely end with a manpower of 7,000
to 8,000. At present, PNB has around 5,200 employees while Allied Bank
has 3,800.

Part of the manpower reduction will be covered by natural attrition,
Chua said, noting that in both banks' hiring program, they had already
considered the forthcoming merger.

Pedrosa also said the merger would be done in a way that would have
"minimal impact on employees."
In terms of business mix, the union will beef up the group's lending
portfolio for small and medium enterprises (SMEs), Chua said. At
present, about 40 percent of PNB's lending portfolio is devoted to
top-tier corporations, 20 percent to the government sector and the
remainder to consumers and SMEs.

All the issued and outstanding common shares of Allied Bank will be
converted to common shares of PNB at a ratio of 130 PNB common shares
for each issued Allied Bank common share. All the issued and outstanding
preferred stock of Allied Bank will also be converted to PNB common
shares at a ratio of 22.763 PNB common shares for each issued Allied
Bank preferred share.
To be able to do this, PNB shareholders approved the reclassification of
its 195.17 million authorized preferred shares into common shares
thereby increasing its authorized common stock to 1.25 billion.
Thereupon, the bank will issue 423.96 million new PNB common shares out
of its authorized and unissued capital stock to be valued at P70 per
share to swap for the outstanding Allied Bank common shares and
preferred shares.

ING acted as financial adviser to the majority shareholders of PNB and
Allied Bank for this merger.

Saturday, March 3, 2012

Landbank loans to farmers rise 25%

By Louella D. Desiderio (The Philippine Star) Updated March 03, 2012
12:00 AM Comments (0)

MANILA, Philippines - Loans extended by state-run Land Bank of the
Philippines to farmers and fisherfolk rose 25 percent in 2011 amid
continued efforts to make credit more accessible to the sector.

The bank said in a statement yesterday that it released a total of P40.5
billion worth of loans to small farmers and fisherfolk last year, up
from the P32.3 billion provided in 2010.

"We intensified our support to small farmers and fisherfolk by
continuously expanding our reach and making credit available to the
marginalized sector," Gilda Pico, Landbank president and chief executive
officer, said.

The bank said more than 900,000 small farmers and fisherfolks benefited
from the credit assistance extended last year.

The loans, Landbank said, were released through 979 cooperatives and 367
countryside financial institutions.

The bank said loans to support crop production reached P20.9 billion
last year, climbing 17 percent from the P17.9 billion released in 2010.

The bank noted that loans for palay production in particular amounted to
P15.5 billion last year, 20 percent higher than the P12.9 billion
provided in 2010.

Marketing loans, it said, reached P12.9 billion last year, up 52 percent
from P8.5 billion in 2010.

Landbank said farmers and fisherfolks in Central Luzon accounted for the
bulk of loan releases to the sector which amounted to P9.6 billion,
while Cagayan Valley came in second, receiving P5.7 billion.

Central Visayas received the third biggest share of loans for the sector
which received P4.4 billion, while Northern Mindanao had the fourth
largest share with P3.8 billion.

Fund offered for business expansion, social dev’t

Fund offered for business expansion, social dev't

STATE-RUN SOCIAL Security System (SSS) has set aside some P7 billion for
private enterprises to finance their business expansion and social
development-related projects.

In statement released on Friday, the pension fund for private employees
said the fund us under its Business Development Loan Facility (BDLF) and
Social Development Loan Facility (SDLF).

"The new SSS lending facilities will enable us to offer financial
assistance to a wider range of projects and borrowers," SSS President
and Chief Executive Officer Emilio S. de Quiros, Jr. was quoted as
saying in the statement.

"Cooperatives, non-government organizations and even barangay micro
business enterprises or BMBEs can borrow," he added.

This move by SSS will help boost employment and spur the country's
economic growth, Mr. de Quiros further said.

The agency also noted the following

• Micro, small and medium enterprises and large industries can tap the
BDLF while social institutions offering education and training programs;
health care and medical services can seek for financial assistance from
the SDLF.

• Eligible borrowers are employers who are registered with the pension
fund. They must be in good credit standing with the SSS, or with no past
due contributions and loan payments.

• The maximum loanable amount is P500 million, but the amount to be
released by the pension fund depends on the "project's actual need and
the borrower's credit capacity."

• Borrowers can choose to pay in a monthly, quarterly, semi-annual or
annual basis for up to 15 years.

SSS said the fund will be allocated per sector as follows: P1 billion
for agriculture, fishing and forestry; P2 billion for construction,
manufacturing, utilities, mining and quarrying; and P4 billion for services.

"The interest rate will depend on prevailing market rates. Borrowers
have a one-time option to switch from a variable interest rate, which is
repriced every six months, to a fixed rate that applies for a period of
three years," Mr. de Quiros said. -- ARRG

BSP to launch CSF for small traders

By: Michelle V. Remo
Philippine Daily Inquirer

1:24 am | Saturday, March 3rd, 2012

The Bangko Sentral ng Pilipinas has announced the creation of a new
credit surety fund (CSF) to boost micro small and medium enterprises
(MSMEs) in the country.

With the establishment of CSFs, low-income traders will get as much
chance as the high-income ones to expand their businesses and increase
their profits, the central bank said.

CSF is a pool of money contributed by cooperatives, local government
units, state-owned banks, and other entities, which will serve as
collateral for MSMEs trying to secure bank loans.

The BSP will take the lead in organizing CSFs in various parts of the
country.

According to the regulator, MSMEs usually find it difficult to secure
bank loans because most lack assets that can serve as collateral. CSF
will ease an MSME's access to bank loans.
The CSF in Capiz will be formally launched on March 7. This is the 21st
CSF in the country.
The central bank said it would spearhead the creation of more CSFs over
the short term to spur economic activities in the countryside.
"The CSF program is expected to increase lending activities, as well as
stimulate business and economic activities, generate employment, and
increase the local government's revenues," the BSP said in the statement.
MSMEs account for over 90 percent of enterprises in the country. They
also account for over 70 percent of employment.
Their problem on access to bank loans, however, was cited as a major
hindrance to the development of that sector.
The improved access to loans and other financial services in the country
is one of the key measures that the BSP believes will be crucial to
achieving "inclusive" economic growth.
Developmental institutions, including the World Bank and the Asian
Development Bank, have urged the Philippine government to strive for
inclusive growth—one that benefits even the low-income sector.
This, they said, would be vital in reducing poverty specially in the
countryside.
The developmental institutions credited the Philippines for maintaining
a steady pace of economic growth over the years, even during the height
of the global economic crisis in 2009. But they have also aired their
concern that growth in the country has not trickled down to the
low-income groups.
Poverty incidence in the Philippines, as of 2009, stood at 26.5 percent
of the country's population, according to the latest statistics.