Agri-Agra guidelines out
BANKS WILL need to set aside at least 25% of their total funds for
lending to farmers, fisherfolk and agrarian reform beneficiaries
beginning next month after the government issued the implementing
guidelines of the Agri-Agra Reform Credit Act yesterday.
The rules state that banks should allocate at least 25% of their total
loanable funds to the agriculture sector, of which 10% should go to
agrarian reform beneficiaries.
"Excess compliance in the 10% agrarian reform credit may be used to
offset a deficiency, if any, in the 15% other agricultural credit in
general, but not vice versa," the rules read.
The implementing rules and regulations (IRR) drafted by the Bangko
Sentral ng Pilipinas (BSP), the Department of Agriculture (DA) and the
Department of Agrarian Reform (DAR) will take effect 15 days after its
publication yesterday.
Republic Act (RA) 10000 or the Agri-Agra Reform Credit Act of 2009,
approved by then Pres. Gloria Macapagal-Arroyo on February 23, 2010,
amended Presidential Decree 717 signed by then President Ferdinand E.
Marcos on May 29, 1975.
The rules also state the BSP, in consultation with the DA and the DAR,
will prepare the guidelines on the computation of total loanable funds
and how banks can comply with the law on a consolidated or group-wide basis.
BSP Deputy Governor Nestor A. Espenilla, Jr. said in a text message
yesterday the circulars covering the computation of total loanable funds
and banks' consolidated compliance will be released "by Friday."
The rules state that banks can directly comply with the requirements of
RA 10000 through the actual extension of loans to qualifed borrowers or
the purchase of eligible loans on a "without recourse" basis from other
banks.
Alternative modes of compliance are also available:
• investment in bonds issued by the Development Bank of the Philippines
and the Land Bank of the Philippines that have been declared eligible by
the DA, the proceeds of which should be used for lending to the
agriculture and agrarian reform sectors;
• investment in other debt securities that have been declared eligible
by the DA or any agency authorized by the DA;
• subscription to shares of stock in accredited rural financial
institutions (preferred shares only), the Quedan and Rural Credit
Guarantee Corp. or the Philippine Crop Insurance Corp.
• investment in the special deposit accounts of rural financial
institutions that are accredited by the BSP;
• wholesale lending to accredited rural financial institutions;
• rediscounting by universal and commercial banks of agriculture and
agrarian reform credits;
• extension of loans for the construction and upgrade of infrastructure,
including farm-to-market roads and post harvest facilities; and
• grant of loans to warehouses or millers or wholesalers accredited by
the National Food Authority.
Banks that fail to comply with the requirements of the law will have to
pay a penalty equivalent to 0.5% of their non-compliance or
under-compliance, which will be computed on a quarterly basis.
"This is something we have to live with because it is the law," Chamber
of Thrift Banks Executive Director Suzanne I. Felix said in a text
message yesterday.
To be fair to the BSP, she said, banks were consulted in the preparation
of the IRR.
For his part, Banco de Oro Unibank Inc. President Nestor V. Tan said it
would be difficult to meet the required lending to the agriculture and
agrarian reform sectors.
"It is not for lack of trying. I don't think the loan demand from this
sector is big enough to accommodate 25% of the industry's loanable
funds," he said. -- Louella D. Desiderio
--
---------------------------------------------
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Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
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Tuesday, May 15, 2012
BSP Anticipates Growing Bank Transactions
BSP Anticipates Growing Bank Transactions
Reorganizes PSO
By LEE C. CHIPONGIAN
May 13, 2012, 4:34pm
MANILA, Philippines - The Bangko Sentral ng Pilipinas is reorganizing the Payments and Settlements Office (PSO), the overseer of the Philippine Payment and Settlements System (PhilPass), in anticipation of the huge volume of bank transactions using its services.
A report from the BSP said that PSO will be reorganized in anticipation of the volume growing in the next few years and as more and more banks are tapping this payments and settlement services unit for their transactions.
The restructuring is expected to improve its efficiency and reliability as the financial sector’s wholesale payments system.
The changes are mostly primarily structural changes such as staffing and the reshuffling of departments as well the removal of non-functioning units within the PSO.
The reorganization will also involve the addition of settlement monitoring desks to address the increasing traffic of PhilPaSS transactions and the regular back-up testing of the site for uninterrupted services.
The BSP is also developing new payments products and systems as they cope with the changing requirements of PhilPaSS clients.
“PhilPass is becoming more crucial to the (financial) sector,” said BSP Deputy Governor Nestor A. Espenilla Jr. “In the overall scheme of things, the role of PhilPass is that it is the collector of the BSP, the government and all of the banks.”
Trillions of pesos pass through the system every year. In 2011, PhilPaSS transactions increased 23 percent to 1.2 million valued at P312.6 trillion. This amount is 51.3 percent higher than end 2010’s P206.6 trillion.
Espenilla said monitoring and regulating PhilPass transactions is one of the most important duties of the BSP.
“The central bank is the depository bank of the government … and all the banks use the BSP as a depository so the value of PhilPass is important. For example, if somebody wants to transfer money from the government to a bank, or a bank to another bank, the most efficient way to do that is through PhilPass,” stressed Espenilla.
At present, the PSO through PhilPaSS maintains and controls the demand deposit accounts of the local banks and monitors the receipt and settlement of interbank fund transfer instructions involving interbank lending/borrowing, automated teller machine network funds, purchase and sale of government securities through the Bureau of the Treasury’s own real-time system, among others.
The PSO also monitors and implements policies to manage risks to PhilPaSS such as banks’ intraday liquidity facility and overnight clearing line.
The BSP has been encouraging more financial entities under its supervision to participate in PhilPaSS. It wants to expand the usability of PhilPaSS as a payments facility that is faster and efficient to benefit all banking institutions.
From only 237 daily average transactions worth P100 billion in 2002 when PhilPaSS was opened, the system now settles an average of 4,50
-- ------------------------------------------------------------------------ CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031 Emails: carlosani@gmail.com , carlosani@seedfinance.net Landline Phone: +63495010127 (PLDT) Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun) Websites: CARLOSANI.COM - http://www.carlosani.com DEVJOBS - http://www.devjobsmail.com PHILDEVFINANCE - http://phildevfinance.posterous.com My News Clippings - http://www.myclipps.posterous.com Family website - http://www.anifamily.net SEEDFINANCE Corporation - http://www.seedfinance.net Skype name: carlosaniph ----------------------------------------------------------------------- *********** This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you. ***********
LBP Agri Loans Reach P285.5B
LBP Agri Loans Reach P285.5B
Adopts Sme Risk Mitigating Measures
By BERNIE CAHILES-MAGKILAT
May 13, 2012, 4:31pm
MANILA, Philippines - State-owned Land Bank of the Philippines (LBP) continued to adopt measures to mitigate risks of lending to small farmers and fisherfolk as loan disbursements to this sector reached P285.5 billion from 1991 to 2010.
Landbank president and CEO Gilda E. Pico said the bank has strengthened the implementation of mitigating controls for lending to small farmers and fisherfolk who in most cases do not have hard collaterals to offer.
One measure is the enhancement of the Bank’s Cooperative Accreditation Criteria and the Countryside Financial Institution (CFI) Risk Assets Acceptance Criteria which are used in assessing the cooperative and CFI’s eligibility to access the Bank’s credit facilities and other services. The asset acceptance criteria serve as Landbank’s ultimate measure of risk acceptance for all its credit programs.
Landbank has also adopted the use of the Enterprise-based Approach in extending credit and other services. And as part of its credit enhancements, Landbank uses the PCIC Insurance Coverage, the Guarantee coverage of the Agricultural Guarantee Fund Pool (AGFP), the Credit Surety Fund (CSF) and other guarantee funds.
Furthermore, Landbank encourages purchase order or confirmed market tie-up between producers or cooperatives and reliable buyers or processors through the signing of the Production Technical and Marketing Agreements (PTMA). This tie-up is done through the signing of Production Technical and Marketing Agreement (PTMA) of both parties specifying the roles of the partners and embodies the collection mechanism of cooperative’s loans extended by Landbank.
In 2010, Landbank reported written-off accounts amounting to P471.19 million for loan releases to cooperatives and CFIs.
Pico explained that the said written-off accounts were not incurred in 2010 alone but over a period of 19 years, representing 0.17 percent of the Bank’s total loan disbursements during the period.
“We undertake several remedial measures before proposing loans for write off. We only propose a loan for write off when all efforts have been exerted to collect or recover payment from the borrower but to no avail,” Pico said.
The bank president underscored that Landbank remains committed to its support to the farmers and fisherfolk sector, while striking a balance in strengthening its viability as a premier government financial institution.
-- ------------------------------------------------------------------------ CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031 Emails: carlosani@gmail.com , carlosani@seedfinance.net Landline Phone: +63495010127 (PLDT) Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun) Websites: CARLOSANI.COM - http://www.carlosani.com DEVJOBS - http://www.devjobsmail.com PHILDEVFINANCE - http://phildevfinance.posterous.com My News Clippings - http://www.myclipps.posterous.com Family website - http://www.anifamily.net SEEDFINANCE Corporation - http://www.seedfinance.net Skype name: carlosaniph ----------------------------------------------------------------------- *********** This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you. ***********
Philippines shields the poor amid income gap
Philippines shields the poor amid income gap
Feature
She earns about $100 a month washing clothes and her husband used to
bring in about $70 a month driving a motorcycle taxi until he went blind.
But things are better than they used to be.
Through a program in the Philippines called Pantawid Pamilya (Family
Subsistence), 3 million poor households like Ms. Capco's get small
grants from the government if they keep their children in school and
take them regularly to health centers.
"It's really a big help because now we don't have a problem about
whether we can have food to eat or if the kids have money to go to
school," Ms. Capco, 43, said with her two-year-old daughter Rihanna on
her lap.
A high school graduate with gleaming eyes and a ready smile, Ms. Capco
has been in the ramshackle community for 18 years.
With a quarter of its people below the poverty line as the population
crests 100 million, the Philippines points to the need for developing
Asia to reverse worsening inequality and broaden the benefits of the
region's tremendous economic growth.
Conditional Cash Transfer schemes like Pantawid Pamilya -- so-named for
conditions imposed to qualify for benefits -- were pioneered in Brazil
and Mexico and have proven very effective in giving immediate help to
the poor and breaking vicious cycles of poverty by improving health,
education and opportunities.
Narrowing the wealth gap has become as pressing as poverty alleviation,
making it a key theme of this week's annual meeting of the Asian
Development Bank (ADB) in Manila with government officials, bankers and
civil society groups from 67 countries.
Inequality is rising in 11 countries making up 82% of Asia's population,
the ADB says. That list includes China, India and Indonesia -- three
huge economies driving much of the growth.
"Relative to other regions, the recent period of growth in Asia has been
both less inclusive and less pro-poor," the International Monetary Fund
said in a report.
For Rajat Nag, ADB's managing director-general, growing inequality
"threatens to undermine the region's stability."
Governments in Asia have the resources to promote inclusive growth, he
said in mid-April, and they should adopt more targeted social spending.
That means rolling back poorly focused schemes like the fuel subsidies
in Indonesia that the government finds costly but politically difficult
to kill.
"Countries have often felt that they first need to grow and they need to
grow fast," Mr. Nag said.
"But a principle of rising tides will lift all boats makes an assumption
that no boat has a hole in the hull."
Conditional Cash Transfer schemes in the Philippines and Indonesia --
and more limited ones in Bangladesh, Pakistan and Cambodia -- are seen
as one of the best ways to target spending.
Pantawid Pamilya, piloted in 2007, is now the largest social protection
scheme in the Philippines. Monthly grants of up to P1,400 go to the
mother, as experience shows women tend to spend the money on food,
medicine and school supplies.
"From the beginning, the program was very well designed," said Nazmul
Chaudhury, the World Bank's point person for Pantawid Pamilya. "In terms
of sophistication of an integrated program, the rigor of the poverty
targeting database and potential for this as a larger social safety net,
there's nothing like that in the region."
The benefits are clear to Ms. Capco, who plans to set up a small stall
selling snacks.
"My hope is for all my kids to finish college," she said. -- Reuters
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
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Websites:
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Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
Feature
She earns about $100 a month washing clothes and her husband used to
bring in about $70 a month driving a motorcycle taxi until he went blind.
But things are better than they used to be.
Through a program in the Philippines called Pantawid Pamilya (Family
Subsistence), 3 million poor households like Ms. Capco's get small
grants from the government if they keep their children in school and
take them regularly to health centers.
"It's really a big help because now we don't have a problem about
whether we can have food to eat or if the kids have money to go to
school," Ms. Capco, 43, said with her two-year-old daughter Rihanna on
her lap.
A high school graduate with gleaming eyes and a ready smile, Ms. Capco
has been in the ramshackle community for 18 years.
With a quarter of its people below the poverty line as the population
crests 100 million, the Philippines points to the need for developing
Asia to reverse worsening inequality and broaden the benefits of the
region's tremendous economic growth.
Conditional Cash Transfer schemes like Pantawid Pamilya -- so-named for
conditions imposed to qualify for benefits -- were pioneered in Brazil
and Mexico and have proven very effective in giving immediate help to
the poor and breaking vicious cycles of poverty by improving health,
education and opportunities.
Narrowing the wealth gap has become as pressing as poverty alleviation,
making it a key theme of this week's annual meeting of the Asian
Development Bank (ADB) in Manila with government officials, bankers and
civil society groups from 67 countries.
Inequality is rising in 11 countries making up 82% of Asia's population,
the ADB says. That list includes China, India and Indonesia -- three
huge economies driving much of the growth.
"Relative to other regions, the recent period of growth in Asia has been
both less inclusive and less pro-poor," the International Monetary Fund
said in a report.
For Rajat Nag, ADB's managing director-general, growing inequality
"threatens to undermine the region's stability."
Governments in Asia have the resources to promote inclusive growth, he
said in mid-April, and they should adopt more targeted social spending.
That means rolling back poorly focused schemes like the fuel subsidies
in Indonesia that the government finds costly but politically difficult
to kill.
"Countries have often felt that they first need to grow and they need to
grow fast," Mr. Nag said.
"But a principle of rising tides will lift all boats makes an assumption
that no boat has a hole in the hull."
Conditional Cash Transfer schemes in the Philippines and Indonesia --
and more limited ones in Bangladesh, Pakistan and Cambodia -- are seen
as one of the best ways to target spending.
Pantawid Pamilya, piloted in 2007, is now the largest social protection
scheme in the Philippines. Monthly grants of up to P1,400 go to the
mother, as experience shows women tend to spend the money on food,
medicine and school supplies.
"From the beginning, the program was very well designed," said Nazmul
Chaudhury, the World Bank's point person for Pantawid Pamilya. "In terms
of sophistication of an integrated program, the rigor of the poverty
targeting database and potential for this as a larger social safety net,
there's nothing like that in the region."
The benefits are clear to Ms. Capco, who plans to set up a small stall
selling snacks.
"My hope is for all my kids to finish college," she said. -- Reuters
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
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Rizal Microbank eyes more loans, offices
Rizal Microbank eyes more loans, offices
RIZAL MICROBANK, the microfinance arm of Yuchengco-led Rizal Commercial
Banking Corp. (RCBC), seeks to expand its loan portfolio by more than
half this year and has rolled out a plan to strengthen its operations in
Luzon and Mindanao.
"We want to grow our loan disbursements to P400 million by end-2012,"
said John G. Deveras, Rizal Microbank vice- chairman, in a phone
interview last Tuesday.
He added the bank will open new branches and micro-banking offices (MBO)
in Luzon and Mindanao to extend its reach.
Rizal Microbank, the result of the merger between Pres. Jose P. Laurel
Rural Bank, Inc. and Rizal Microbank (formerly the Merchants Savings &
Loan Association, Inc.), has 10 branches in southern Luzon and eight
branches in southern Mindanao at present. The merger was approved by the
central bank in March.
In Luzon, Rizal Microbank will establish a branch in Lipa, Batangas and
Puerto Princesa City, and one MBO each in Malvar, Batangas; San Juan,
Batangas; and Cabuyao, Laguna.
In Mindanao, it will set up a branch each in General Santos City;
Valencia City, Bukidnon; and Butuan City; and two MBOs in Davao City.
JP Laurel Rural Bank and Rizal Microbank disbursed a total of P260
million in loans last year, falling short of their P300 million combined
target.
Loans averaged P50,000, carried a 2% interest rate and had tenors of
three to six months.
"We don't favor any industry in lending. We lend to anyone who is a good
business person. Our clients usually use the money for their working
capital," Mr. Deveras said.
Asked if Rizal Microbank plans to expand to Visayas, he said in a text
message yesterday: "We are not yet ready to manage offices in Visayas
and there's still lots of room for growth in Mindanao and southern Luzon."
He also pointed out the thrift bank has "more than enough capital" to
build new branches, which usually cost around P2 million each, and put
up MBOs, which cost around P500,000 each.
RCBC has infused Rizal Microbank with P500 million in additional capital
to support its operations this year and the next year as it is not
expected to turn in a profit until 2014.
Mr. Deveras also said the bank will be "aggressive" in hiring lending
officers or microfinance account officers but did not say the number the
bank will employ.
Microfinance account officers are in charge of marketing the bank's
microfinance products and conducting intensive credit investigation or
background checks to establish a client's character and capacity to pay.
RCBC ventured into microfinance 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. -- A. R. R. Gregorio
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
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Family website - http://www.anifamily.net
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-----------------------------------------------------------------------
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This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
RIZAL MICROBANK, the microfinance arm of Yuchengco-led Rizal Commercial
Banking Corp. (RCBC), seeks to expand its loan portfolio by more than
half this year and has rolled out a plan to strengthen its operations in
Luzon and Mindanao.
"We want to grow our loan disbursements to P400 million by end-2012,"
said John G. Deveras, Rizal Microbank vice- chairman, in a phone
interview last Tuesday.
He added the bank will open new branches and micro-banking offices (MBO)
in Luzon and Mindanao to extend its reach.
Rizal Microbank, the result of the merger between Pres. Jose P. Laurel
Rural Bank, Inc. and Rizal Microbank (formerly the Merchants Savings &
Loan Association, Inc.), has 10 branches in southern Luzon and eight
branches in southern Mindanao at present. The merger was approved by the
central bank in March.
In Luzon, Rizal Microbank will establish a branch in Lipa, Batangas and
Puerto Princesa City, and one MBO each in Malvar, Batangas; San Juan,
Batangas; and Cabuyao, Laguna.
In Mindanao, it will set up a branch each in General Santos City;
Valencia City, Bukidnon; and Butuan City; and two MBOs in Davao City.
JP Laurel Rural Bank and Rizal Microbank disbursed a total of P260
million in loans last year, falling short of their P300 million combined
target.
Loans averaged P50,000, carried a 2% interest rate and had tenors of
three to six months.
"We don't favor any industry in lending. We lend to anyone who is a good
business person. Our clients usually use the money for their working
capital," Mr. Deveras said.
Asked if Rizal Microbank plans to expand to Visayas, he said in a text
message yesterday: "We are not yet ready to manage offices in Visayas
and there's still lots of room for growth in Mindanao and southern Luzon."
He also pointed out the thrift bank has "more than enough capital" to
build new branches, which usually cost around P2 million each, and put
up MBOs, which cost around P500,000 each.
RCBC has infused Rizal Microbank with P500 million in additional capital
to support its operations this year and the next year as it is not
expected to turn in a profit until 2014.
Mr. Deveras also said the bank will be "aggressive" in hiring lending
officers or microfinance account officers but did not say the number the
bank will employ.
Microfinance account officers are in charge of marketing the bank's
microfinance products and conducting intensive credit investigation or
background checks to establish a client's character and capacity to pay.
RCBC ventured into microfinance 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. -- A. R. R. Gregorio
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
Regulating body for HMOs sought
Regulating body for HMOs sought
By Paolo Romero (The Philippine Star) Updated May 07, 2012 12:00 AM
Comments (0)
MANILA, Philippines - A lawmaker has called for the creation of a
government body to regulate dozens of health maintenance organizations
(HMOs).
In House Bill 6025, Quezon City Rep. Winston Castelo proposes the
creation of the independent Health Management Organizations Regulatory
Commission to exercise control, supervision, and authority over HMOs
nationwide.
Castelo said except for a "clearance to operate" issued by the
Department of Health, HMOs have been largely unregulated.
"There must be a regulatory commission to take charge of the
multifaceted problems that now plague this industry as the ones that
serve as medical services providers in the broad sense of the term," he
said.
Castelo said the proposed regulatory commission could address
cardholders' "many humiliating experiences," which have been largely the
result of the lack of regulatory mechanism for HMOs.
The commission would initially assume the accreditation system that the
DOH exercises and adopt the rules and regulations on the supervision of
HMOs, he added.
Castelo said after two years of transition, the commission would evolve
as "independent in its overall administrative and operational functions
as the proper regulatory agency."
After the transition, the commission would issue new sets of supervisory
and regulatory guidelines to implement the measure, he added.
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
By Paolo Romero (The Philippine Star) Updated May 07, 2012 12:00 AM
Comments (0)
MANILA, Philippines - A lawmaker has called for the creation of a
government body to regulate dozens of health maintenance organizations
(HMOs).
In House Bill 6025, Quezon City Rep. Winston Castelo proposes the
creation of the independent Health Management Organizations Regulatory
Commission to exercise control, supervision, and authority over HMOs
nationwide.
Castelo said except for a "clearance to operate" issued by the
Department of Health, HMOs have been largely unregulated.
"There must be a regulatory commission to take charge of the
multifaceted problems that now plague this industry as the ones that
serve as medical services providers in the broad sense of the term," he
said.
Castelo said the proposed regulatory commission could address
cardholders' "many humiliating experiences," which have been largely the
result of the lack of regulatory mechanism for HMOs.
The commission would initially assume the accreditation system that the
DOH exercises and adopt the rules and regulations on the supervision of
HMOs, he added.
Castelo said after two years of transition, the commission would evolve
as "independent in its overall administrative and operational functions
as the proper regulatory agency."
After the transition, the commission would issue new sets of supervisory
and regulatory guidelines to implement the measure, he added.
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
Debt-driven inclusiveness
Debt-driven inclusiveness
By: Randy David
Philippine Daily Inquirer
2:56 am | Thursday, May 3rd, 2012
Waiting in line for my turn at a Landbank ATM in the UP campus the other
day, I started to fret at seeing the queue wasn't moving. Two women were
hogging the machine and serially withdrawing money. They shuffled what
looked like a deck of plastic cards while routinely consulting a small
notebook.
"Wow," I told the person next to me, hoping the card-shufflers would
overhear, "I've never seen anyone with so many bank accounts." Wryly,
she said, "It's the 30th, that's why. They're collectors." Only then did
I realize how terribly mired in debt our government workers are. I've
recently learned that as many as 80 percent of them have reached the
maximum (sagad na) they can take out, which means their monthly
take-home pay must not fall below P5,000. But, most likely, they have
also borrowed against this remaining amount, thus leaving their ATM
cards with the loan sharks.
Viewed from this frame, one can appreciate the significance of the
government's decision to release, ahead of time, the last tranche of the
staggered salary increase for the country's 1.5 million government
employees. It puts much-needed cash into the hands of families that are
not only without savings, but are so indebted that they must borrow for
their daily needs. This final increase raises the minimum pay (salary
grade 1) for government workers to P9,000, excluding allowances. This is
very low compared to what businessmen and professionals in our society
earn, and what government workers in prosperous countries are paid. But
it compares favorably with what workers in the private sector make.
Minimum wage by itself, however, is not a good gauge of the condition of
the working class. Increases in the price of food, utilities and
transportation can quickly wipe out any wage increase. This makes
inflation the biggest enemy of labor. More than legislated wage
increases, I prefer to see social redistribution take the form of
concrete improvements in the quality and accessibility of basic
education, health services and mass housing.
But there is another side to the situation of the poor that interests me
as a sociologist. And that is the effect of a consumerist culture on our
people's daily life. We pride ourselves in having one of the highest
mobile phone penetrations in the world. Indeed we like to think of
ourselves as the texting capital of the world, as if that were a measure
of development. But how much real productive use do we put this amazing
technology to? My guess is not much. Yet mobile phones are now regarded
as basic necessity. I've seen people scrimp on food just to buy phone
load. They feel miserable when they cannot text or call, as if all
worthy human interaction depended on the cell phone.
But the mobile phone is just the most visible emblem of our consumerist
way of life. The capital of modern consumerism is the shopping mall.
Whereas in developed countries, the growing popularity of Internet
shopping is putting big and fully-staffed stores out of business, the
opposite is taking place here. Our shopping malls are getting bigger,
and their reach has become so wide they have integrated small-town
grocery and sari-sari stores as their satellites. It is not surprising
that the growth of the mall economy has followed the same trajectory as
the instant prosperity created by overseas work. These malls would not
be where they are today without OFW remittances. And where the malls
are, the fast-food chains cannot be far behind. It is this
democratization of consumption that fosters the illusion of
inclusiveness in our otherwise highly stratified society.
One would think that a country that earns about $20 billion annually
from its overseas workers would be, sooner or later, well-positioned to
capitalize its own long-term growth. But we've been sending out workers
for nearly four decades now. The growth in income has not transformed
Filipino families into savers. It has only made them consume more. As
their incomes rise, so have their needs multiplied. Sadly, it is not
just their lifestyles that have changed, but also their moral intuitions
about what constitutes a worthwhile life. Nowadays few think twice about
leaving their young children behind in the hope of earning more abroad.
Much of the evidence for this sea change in our way of life is
anecdotal. One wishes someone like Daniel Kahneman, 2002 Nobel Prize
winner in the economic sciences, could do a study of how the intuitions
that currently shape Filipino lives defy everything presumed by the
"rational agent model"—maybe something along the lines of a psychology
of stupidity, to which all of us, regardless of social class or
education, are susceptible.
I have a neighbor in Bataan who has been bugging me for the longest time
to help him get a job in an ocean-going liner. He hasn't been jobless at
home, but he thinks he's not earning enough to support his growing
family. I managed to set him up for a job test with a crewing company
owned by an acquaintance. A high school graduate, this man is a fine
all-round carpenter, but twice he failed the oral interview in English.
From a local job that engaged him for a year, he had netted P20,000 in
savings. He put in a portion as down payment for a motorbike, but the
monthly amortization soon ate up all the money he had. After five
months, he had to return the bike, forfeiting every cent he had paid. He
has asked me again to endorse his application for an overseas job. I
strongly advised him to stay in a job which will not take him away so
long from his family. I don't think his case is unusual. Like many, he
suffers from an exaggerated view of the benefits of working abroad.
public.lives@gmail.com
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
By: Randy David
Philippine Daily Inquirer
2:56 am | Thursday, May 3rd, 2012
Waiting in line for my turn at a Landbank ATM in the UP campus the other
day, I started to fret at seeing the queue wasn't moving. Two women were
hogging the machine and serially withdrawing money. They shuffled what
looked like a deck of plastic cards while routinely consulting a small
notebook.
"Wow," I told the person next to me, hoping the card-shufflers would
overhear, "I've never seen anyone with so many bank accounts." Wryly,
she said, "It's the 30th, that's why. They're collectors." Only then did
I realize how terribly mired in debt our government workers are. I've
recently learned that as many as 80 percent of them have reached the
maximum (sagad na) they can take out, which means their monthly
take-home pay must not fall below P5,000. But, most likely, they have
also borrowed against this remaining amount, thus leaving their ATM
cards with the loan sharks.
Viewed from this frame, one can appreciate the significance of the
government's decision to release, ahead of time, the last tranche of the
staggered salary increase for the country's 1.5 million government
employees. It puts much-needed cash into the hands of families that are
not only without savings, but are so indebted that they must borrow for
their daily needs. This final increase raises the minimum pay (salary
grade 1) for government workers to P9,000, excluding allowances. This is
very low compared to what businessmen and professionals in our society
earn, and what government workers in prosperous countries are paid. But
it compares favorably with what workers in the private sector make.
Minimum wage by itself, however, is not a good gauge of the condition of
the working class. Increases in the price of food, utilities and
transportation can quickly wipe out any wage increase. This makes
inflation the biggest enemy of labor. More than legislated wage
increases, I prefer to see social redistribution take the form of
concrete improvements in the quality and accessibility of basic
education, health services and mass housing.
But there is another side to the situation of the poor that interests me
as a sociologist. And that is the effect of a consumerist culture on our
people's daily life. We pride ourselves in having one of the highest
mobile phone penetrations in the world. Indeed we like to think of
ourselves as the texting capital of the world, as if that were a measure
of development. But how much real productive use do we put this amazing
technology to? My guess is not much. Yet mobile phones are now regarded
as basic necessity. I've seen people scrimp on food just to buy phone
load. They feel miserable when they cannot text or call, as if all
worthy human interaction depended on the cell phone.
But the mobile phone is just the most visible emblem of our consumerist
way of life. The capital of modern consumerism is the shopping mall.
Whereas in developed countries, the growing popularity of Internet
shopping is putting big and fully-staffed stores out of business, the
opposite is taking place here. Our shopping malls are getting bigger,
and their reach has become so wide they have integrated small-town
grocery and sari-sari stores as their satellites. It is not surprising
that the growth of the mall economy has followed the same trajectory as
the instant prosperity created by overseas work. These malls would not
be where they are today without OFW remittances. And where the malls
are, the fast-food chains cannot be far behind. It is this
democratization of consumption that fosters the illusion of
inclusiveness in our otherwise highly stratified society.
One would think that a country that earns about $20 billion annually
from its overseas workers would be, sooner or later, well-positioned to
capitalize its own long-term growth. But we've been sending out workers
for nearly four decades now. The growth in income has not transformed
Filipino families into savers. It has only made them consume more. As
their incomes rise, so have their needs multiplied. Sadly, it is not
just their lifestyles that have changed, but also their moral intuitions
about what constitutes a worthwhile life. Nowadays few think twice about
leaving their young children behind in the hope of earning more abroad.
Much of the evidence for this sea change in our way of life is
anecdotal. One wishes someone like Daniel Kahneman, 2002 Nobel Prize
winner in the economic sciences, could do a study of how the intuitions
that currently shape Filipino lives defy everything presumed by the
"rational agent model"—maybe something along the lines of a psychology
of stupidity, to which all of us, regardless of social class or
education, are susceptible.
I have a neighbor in Bataan who has been bugging me for the longest time
to help him get a job in an ocean-going liner. He hasn't been jobless at
home, but he thinks he's not earning enough to support his growing
family. I managed to set him up for a job test with a crewing company
owned by an acquaintance. A high school graduate, this man is a fine
all-round carpenter, but twice he failed the oral interview in English.
From a local job that engaged him for a year, he had netted P20,000 in
savings. He put in a portion as down payment for a motorbike, but the
monthly amortization soon ate up all the money he had. After five
months, he had to return the bike, forfeiting every cent he had paid. He
has asked me again to endorse his application for an overseas job. I
strongly advised him to stay in a job which will not take him away so
long from his family. I don't think his case is unusual. Like many, he
suffers from an exaggerated view of the benefits of working abroad.
public.lives@gmail.com
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
Gov't Offers P4,000 Educational Loan
Gov't Offers P4,000 Educational Loan
By GENALYN D. KABILING
May 1, 2012, 8:22pm
MANILA, Philippines — Members of the Government Service Insurance System
(GSIS) and the Social Security System (SSS) can now borrow money from
the government so they or their children can complete college or get
vocational courses.
The P11.2-billion education assistance fund was among the benefits
announced by President Benigno S. Aquino III during the Labor Day
celebration yesterday in Malacañang.
"Today, qualified members no longer have to cling to five-six loans to
send their children to school. Filipino workers can now rely on a more
practical and more fair means to invest on their future," Aquino said in
Filipino in his speech at the Labor Day breakfast meeting with labor
leaders.
Budget Secretary Florencio Abad said the Educational Assistance Fund
Program (EAFP) will allow
200,000 SSS members and 1.4 million GSIS members to receive assistance
for four-year degree programs and technical/vocational courses.
Under the EAFP, Abad said P4.2 billion will go to GSIS members, while P7
billion will be allotted to the SSS.
Any GSIS member can borrow P4,000 at 6 percent interest payable over a
5-year period, while an SSS member with a monthly salary of P10,000 can
avail himself of as much as P120,000 in education assistance.
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
By GENALYN D. KABILING
May 1, 2012, 8:22pm
MANILA, Philippines — Members of the Government Service Insurance System
(GSIS) and the Social Security System (SSS) can now borrow money from
the government so they or their children can complete college or get
vocational courses.
The P11.2-billion education assistance fund was among the benefits
announced by President Benigno S. Aquino III during the Labor Day
celebration yesterday in Malacañang.
"Today, qualified members no longer have to cling to five-six loans to
send their children to school. Filipino workers can now rely on a more
practical and more fair means to invest on their future," Aquino said in
Filipino in his speech at the Labor Day breakfast meeting with labor
leaders.
Budget Secretary Florencio Abad said the Educational Assistance Fund
Program (EAFP) will allow
200,000 SSS members and 1.4 million GSIS members to receive assistance
for four-year degree programs and technical/vocational courses.
Under the EAFP, Abad said P4.2 billion will go to GSIS members, while P7
billion will be allotted to the SSS.
Any GSIS member can borrow P4,000 at 6 percent interest payable over a
5-year period, while an SSS member with a monthly salary of P10,000 can
avail himself of as much as P120,000 in education assistance.
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
110 banks apply for micro offices
110 banks apply for micro offices
OVER 100 banks have applied to establish micro-banking offices (MBOs) in
areas where there were no banks or only a few banks, according to the
Bangko Sentral ng Pilipinas (BSP).
"As of end-2011, the BSP received applications from 110 banks covering
over 720 MBOs," Pia Bernadette Roman-Tayag, BSP head for financial
inclusion, said in an e-mail on Monday.
Almost all the applications were approved and only a few were denied,
she added, declining to cite specific figures.
The latest number of banks was an increase from the 97 that lodged
applications as of end-June last year.
Ms. Tayag said the banks' positive response to Circular 694 issued in
October 2010 gave the central bank hope that the hundreds of
municipalities still without banks up to now would finally get access to
financial services.
The BSP issued Circular 694 to allow banks to establish MBOs or
microfinance-oriented other banking offices (MFOs).
"Other banking offices" or OBOs are permitted to do only
non-transactional banking functions such as marketing, accepting of loan
applications or hosting of automated teller machines.
MBOs or MFOs, on the other hand, are allowed to do more such as such as
accept micro-deposits; service withdrawals; disburse micro-loans and
collect payments; market, sell and service microinsurance products;
receive and pay out remittances; and act as cash-in, cash-out agents of
electronic money transactions.
The circular was meant to encourage banks to expand -- paticularly to
unserved or underserved areas -- without shelling out the large sums
they usually do for branches.
"With the relatively lower cost to set up, MBOs provide an opportunity
for banks to set up offices in areas that may otherwise not be
immediately economically feasible to set up an office," Ms. Tayag explained.
"This therefore provides scope for banks to reach out to hard-to-reach
or even unbanked areas," she added.
Two municipalities -- one in Ilocos Sur and another in Maguindanao --
would get their first bank offices soon, thanks to MBOs that would be
set up there, she noted.
Ms. Tayag said most of the banks' applications were for MBOs or the
conversion of OBOs into MBOs. Some were for the retention of MBOs and
conversion of OBOs into extension offices
"[T]here are 65 municipalities in the country that are serviced only by
MBOs," she said.
"This is a significant first step to address the problem of lack of
financial access where around 600 of our country's 1,634 municipalities
have no banking offices."
Results of the BSP's first Consumer Finance Survey showed that eight out
of 10 households did not have a deposit account.
The data pointed out the need for the BSP to continue working towards a
more inclusive financial system by issuing policies and educating the
public. -- Kathleen A. Martin
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********
OVER 100 banks have applied to establish micro-banking offices (MBOs) in
areas where there were no banks or only a few banks, according to the
Bangko Sentral ng Pilipinas (BSP).
"As of end-2011, the BSP received applications from 110 banks covering
over 720 MBOs," Pia Bernadette Roman-Tayag, BSP head for financial
inclusion, said in an e-mail on Monday.
Almost all the applications were approved and only a few were denied,
she added, declining to cite specific figures.
The latest number of banks was an increase from the 97 that lodged
applications as of end-June last year.
Ms. Tayag said the banks' positive response to Circular 694 issued in
October 2010 gave the central bank hope that the hundreds of
municipalities still without banks up to now would finally get access to
financial services.
The BSP issued Circular 694 to allow banks to establish MBOs or
microfinance-oriented other banking offices (MFOs).
"Other banking offices" or OBOs are permitted to do only
non-transactional banking functions such as marketing, accepting of loan
applications or hosting of automated teller machines.
MBOs or MFOs, on the other hand, are allowed to do more such as such as
accept micro-deposits; service withdrawals; disburse micro-loans and
collect payments; market, sell and service microinsurance products;
receive and pay out remittances; and act as cash-in, cash-out agents of
electronic money transactions.
The circular was meant to encourage banks to expand -- paticularly to
unserved or underserved areas -- without shelling out the large sums
they usually do for branches.
"With the relatively lower cost to set up, MBOs provide an opportunity
for banks to set up offices in areas that may otherwise not be
immediately economically feasible to set up an office," Ms. Tayag explained.
"This therefore provides scope for banks to reach out to hard-to-reach
or even unbanked areas," she added.
Two municipalities -- one in Ilocos Sur and another in Maguindanao --
would get their first bank offices soon, thanks to MBOs that would be
set up there, she noted.
Ms. Tayag said most of the banks' applications were for MBOs or the
conversion of OBOs into MBOs. Some were for the retention of MBOs and
conversion of OBOs into extension offices
"[T]here are 65 municipalities in the country that are serviced only by
MBOs," she said.
"This is a significant first step to address the problem of lack of
financial access where around 600 of our country's 1,634 municipalities
have no banking offices."
Results of the BSP's first Consumer Finance Survey showed that eight out
of 10 households did not have a deposit account.
The data pointed out the need for the BSP to continue working towards a
more inclusive financial system by issuing policies and educating the
public. -- Kathleen A. Martin
--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------
***********
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Monday, April 23, 2012
One Network Bank establishes presence in the Visayas
One Network Bank establishes presence in the Visayas
ILOILO CITY -- One Network Bank (ONB), the country's largest rural bank,
is making its foray into the Visayas via a merger with an Iloilo-based
rural bank.
One Network Bank expands to the Visayas by merging with an Iloilo bank.
Officials of ONB and the six-branch Rural Bank of San Enrique announced
the merger, through a share swap, over the weekend.
Alex V. Buenaventura, ONB president, said the deal still needs to be
approved by the Bangko Sentral ng Pilipinas but the plan is to rename
the six branches of the Rural Bank of San Enrique to ONB within two
years and to set up five more branches within that timeframe.
ONB has no presence in the Visayas despite its 87 branches, which are
mostly in Mindanao. Its chief is bullish, saying the branches in Iloilo
are just a start. "We believe we can replicate in the Visayas what we
have done in Mindanao," he said.
Mr. Buenaventura said ONB chose Iloilo City because it is progressive
and yet many of its residents -- and those in nearby municipalities --
are either unserved or underserved.
He said ONB will introduce loans to teachers, for which it is known, in
Iloilo.
"We will continue to be competitive in providing loans to teachers," Mr.
Buenaventura said.
The merger with the Rural Bank of San Enrique was a result of a
year-long negotiation
Arturo P. Muyco Jr., president of San Enrique, said the rural bank
agreed to it because of difficulty implementing a P25-million five-year
development plan.
He said his group decided to agree to a merger because "we found it more
profitable (for us than being on our own)."
The entry of ONB is a blessing for the smaller rural bank, said Mr.
Muyco, as "(ONB) will be providing us with innovative products."
The two officials assured the employees of the smaller bank they will
not be displaced.
Mr. Buenaventura said ONB will continue to look for more opportunities
nationwide. "We will continue to look for unserved and underserved but
progressive areas," he said.
The bank remains focused, however, on Mindanao. -- C. Q. Francisco
--
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Sunday, April 22, 2012
WB: Phl a model for cash transfer
WB: Phl a model for cash transfer
By Neil Jerome Morales (The Philippine Star)
Updated April 21, 2012 12:00 AM
WASHINGTON – The World Bank (WB) has tagged the Philippines as a model
in providing a social safety net that cushions the impact of global
financial and economic problems.
The Philippines, for its part, wants to improve its Pantawid Pamilyang
Pilipino Program (4P) by lengthening the period that beneficiaries
receive cash.
"We at the Bank have helped extend conditional cash transfer programs to
about 40 other countries. So we had the Philippines (Social Welfare)
secretary here and they have expanded to three million families," World
Bank president Robert Zoellick said on Thursday, at the start of the
2012 WB-IMF Spring Meetings here.
"Let us focus on basic safety nets for every country to deal with the
volatility and uncertainty, because the other lesson we learned is if
you wait until the crisis, it is too late," Zoellick added.
The Philippines began its 4P or the conditional cash transfer program in
2008, targeting to regularly provide cash to 5.2 million households.
"In the General Appropriations Act, we were given P39 million to add
700,000 beneficiaries this year and we have done so," Social Welfare
Secretary Corazon Soliman told The STAR in a forum at the sidelines of
the meetings.
"We are on target and we are now at three million households. What we
are doing now is strengthening and ensuring that we are doing well,"
Soliman said.
The Department of Social Welfare and Development wants to reach 5.2
million households in 2015.
But new plans are under way for the safety net program of the country.
"We are reviewing it to increase the age because we want to make it 0-18
years old. That would require additional funds so that is what we are
looking at and we are doing some computation if we can afford it,"
Soliman said.
To date, 4P helps keep 0-14-year-old children in school through $7 per
month aid per child, with a maximum of three children per household.
"We are looking at the need for children to finish high school," Soliman
said.
Fourteen-year-old children are usually in second or third year of the
four-year secondary school curriculum. Under the K+12 basic education
program that will be implemented this year, students will have four
years of junior high school (Grades 7 to 10) and two years of senior
high school (Grades 11 to 12).
Soliman said the department can implement its lengthened aid as early as
2014 if there is sufficient funding, which is still subject to approval
of the Department of Budget and Management.
The World Bank said that worldwide, three out of five people in
developing countries and four of five people in the world's poorest
countries lack safety net coverage.
The World Bank said countries are struggling to protect their most
vulnerable citizens from the negative impacts of global financial
volatility and food and fuel price hikes.
"Effective safety net coverage overcomes poverty and promotes economic
opportunity and gender equality by helping people find jobs, cope with
economic shocks, and improve the health, education, and wellbeing of
their children," Zoellick said.
"There is a push for the national government to deliver education,
health and infrastructures well because people need it," Soliman said.
The World Bank said expanding cost-effective safety nets like cash
transfers, food assistance, public works programs, and fee waivers help
countries respond to crises.
"It is not a question of whether countries can afford to have safety net
programs... It is whether we can afford not to have them," said Ato
Sufian Ahmed, Minister of Finance and Economic Development of Ethiopia,
where the Productive Safety Nets Program has protected millions from famine.
The World Bank Group support for social protection and labor programs
reached $11.5 billion in 83 countries during the last decade.
Serious threats
Meanwhile, in its Global Monitoring Report (GMR) 2012, the World Bank
said developing nations continue to face serious threats to the
mortality levels of child and mother, as well as reducing levels of
poverty and potable water.
The World Bank said that the world is significantly off-track on the
Millennium Development Goals (MDG) to reduce mortality rates of mothers
and children under five.
"As a result, these goals will not be met in any developing region by
2015. Progress is slowest on maternal mortality, with only one-third of
the targeted reduction achieved thus far. Progress on reducing infant
and child mortality is similarly dismal, with only 50 percent of the
targeted decline achieved," the report stated.
WB chief economist and senior vice president Justin Yifu Lin said that
high and volatile food price works against the attainment of many MDGs,
as they erode consumer purchasing power and prevent millions of people
from escaping poverty and hunger.
"Dealing with food price volatility must be a high priority, especially
as nutrition has been one of the forgotten MDGs," Lin added.
The report stressed that a fragile global economy would slow down human
development goals.
The report estimated that 1.02 billion will remain in extreme poverty in
2015.
"According to our projections, an estimated 1.02 billion people will
still be living in extreme poverty in 2015. Clearly, assistance must be
leveraged in new ways if we are to improve food security and nutrition,
particularly for the poor and vulnerable," said Jos Verbeek, lead author
of the report and lead economist for the World Bank.
Regional progress towards the MDGs is uneven.
The report said that while upper middle-income countries are on track to
achieve most targets, low-income or fragile countries are lagging, with
only two goals achieved or on-track.
What is worse is that commodity prices remain volatile while food prices
are also declining, it said.
The World Bank, however, said that complicating matters is that
development assistance is starting to dry up or shrink due to the crisis
as well as the strengthening of some currencies in the Asian region. –
With Ted Torres
--
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CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
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World Bank: 75 percent of poor have no bank account
World Bank: 75 percent of poor have no bank account
Published : Saturday, April 21, 2012 00:00
Written by : MAYVELIN U. CARABALLO REPORTER
Because of poverty, cost, travel distance and amount of paper work
involved in opening a bank account, three quarters of the world's poor
do not have it, data from the World Bank (WB) showed, also indicating
that those people without access to formal banking often have to rely on
other money lenders who often charge high fees.
From a WB statement released in Washington, D.C. on Thursday (Friday in
Manila), data showed that the "unbanked" are also less likely to start
their own business or insure themselves against unexpected events.
It stated that financial inclusion, or being "banked" can be
transformative, since it allows poor people to build a more secure future.
People that have bank accounts also has the ability to save and borrow,
that allows them to build their assets, start a business, invest in
education, establish a credit rating and eventually own a home, the WB
added.
"Providing financial services to the 2.5 billion people who are
'unbanked' could boost economic growth and opportunity for the world's
poor," said World Bank Group outgoing President Robert Zoellick.
He added that harnessing the power of financial services can really help
people to pay for schooling, save for a home, or start a small business
that can provide jobs for others.
The data also showed that if more poor people are banking today, the
more they are banking on their future.
Moreover, the WB data revealed that women are particularly disadvantaged
when it comes to access to financial services. It showed that only 37
percent of women in developing countries have a bank account, while 46
percent of men do.
On the other hand, WB's Global Financial Inclusion Database, or Global
Findex, collected by Gallup Inc. using the Gallup World Poll Survey,
said that worldwide, 22 percent of adults report having saved at a
formal financial institution in the past 12 months.
Meanwhile, even among those who do have a formal bank account, only 43
percent of adults use their account to save. But 61 percent of account
holders worldwide use their account to receive payments from an
employer, the government or family members living elsewhere.
The data also said that few adults in developing countries use formal
financial products to manage risk. It showed that more than 11 percent
of adults in developing countries have an outstanding loan for
emergencies or health-care needs, but more than 80 percent of these
adults use only informal sources of credit.
It added that of adults in developing countries working in farming,
forestry or fishing, only 6 percent of them have crop, rainfall or
livestock insurance.
--
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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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Thursday, April 19, 2012
Most Filipinos have no bank accounts—BSP survey
Most Filipinos have no bank accounts—BSP survey
By: Michelle V. Remo
By: Michelle V. Remo
Philippine Daily Inquirer
11:49 pm | Wednesday, April 18th, 2012
About 8 of 10 heads of Filipino households do not have any bank
accounts, and most do not have enough cash saved up for emergencies.
These are some of the highlights of the first Consumer Finance Survey
(CFS) conducted by the Bangko Sentral ng Pilipinas. Monetary officials
said the results of the survey underscored the pressing need for the
banking sector to reach out to more Filipino consumers and teach them
the value of saving.
Based on the survey, most respondents who said their families did not
have any savings accounts also saw no need to apply for any type of bank
account because they would not have enough money to deposit. Other
reasons cited were the high amount of minimum deposit balance required
by banks and the aversion of most respondents in dealing with banks.
According to survey, about 4 of 10 households do not have any cash on
hand to be used in case of emergency, while 6 of 10
households have very little cash to spare. Average cash on hand of
Filipino families that may be used for emergencies stand at only P1,681.
These results may be traced partly to insufficiency of income. Also,
lack of access to banks and the high tendency of Filipinos to
spend—rather than save or invest—greatly influenced the results of the
survey, the central bank said.
BSP Governor Amando Tetangco Jr. said in a press conference Wednesday
that the survey revealed the need for greater effort "towards a more
inclusive financial system," where more people would have access to bank
products and services, such as deposits and loans.
Such an effort is necessary, Tetangco said, if the government hopes to
reduce poverty incidence.
He pointed out that the public's savings are what the banking sector
uses to extend loans to fund job-generating investments. Moreover, loans
granted to microenterprises serve to lift the income of most poor people.
Tetangco said results of the survey also raised the need for tighter
monitoring of financial transactions of consumers outside the formal
banking sector.
The survey showed that some Filipinos are inclined to deal with informal
moneylenders, which may include loan sharks, to finance their needs. One
of 10 respondents said they have dealt with moneylenders.
"There is a need to look into shadow banking transactions," Tetangco said.
BSP Assistant Governor Ma. Cyd Tuaño-Amador said that currently, the
government has no sufficient resources to regulate individual
moneylenders. She said, however, that what the BSP can do at the moment
is to strengthen its financial literacy campaign by making people aware
of the risks in dealing with informal lenders.
"Education of the public may help a lot in consumer protection," Amador
said.
Another interesting result of the survey is that 2 of 10 Filipino
households depend solely or partly on remittances to support their
expenditure requirements, indicating the importance of overseas Filipino
workers in financially supporting households in the Philippines.
Moreover, 7 of 10 Filipino households are not risk takers, prefering to
rely on fixed income rather than invest in businesses.
The survey, which took a few years to complete, covered 10,520
households nationwide. Data was collected from November 2009 to January
2010.
--
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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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Landline Phone: +63495010127 (PLDT)
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Sunday, April 15, 2012
DBP launches green financing program
|
MANILA, Philippines - Four major institutions have launched a green financing program to promote industrial productivity and green growth by protecting the environment.
The program was formalized through a joint agreement among the Development Bank of the Philippines (DBP), the European Chamber of Commerce of the Philippines (ECCP), the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), the Asia Society for Social Improvement and Sustainable Transformation (ASSIST), and the Environment Management Bureau of the Department of Environment and Natural Resources (EMB-DENR).
The green financing program promotes investments for environmentally-friendly processes and systems such as cleaner production, waste minimization, resource conservation, energy efficiency, pollution prevention and control, among others, with the end in view of reducing environmental footprints from local government unit (LGU) projects and industrial operations.
DBP president and chief executive officer Francisco F. del Rosario Jr. said the government financial institution will make available P20.6 billion for lending for environment projects.
DBP is partnering with the ECCP in its program of greening industries such as the SMEs for environmental Accountability, Responsibility and Transparency (SMART) Cebu project aimed at increasing the competitiveness of small and medium enterprises by promoting cleaner production, the development of eco-friendly products and entering the green markets in Europe and Asia, and the Green Philippines Islands of Sustainability that promotes sustainable production for industries within Metro Manila and Calabarzon.
Del Rosario also said ADFIAP’s adherence to the principle of a safe and clean environment as an integral part of sound business practice inspires DBP to help its clients to operate in a more environmentally-sound system.
“The expertise and collaboration initiatives of ADFIAP in organizing training programs on development banking, risk management, access to finance, corporate and environmental governance and its worldwide network of experts are resources that are open to all,” he added.
DBP is likewise collaborating with ASSIST, an international capability building organization that has implemented various developmental projects in Southeast Asia, South Asia, China and some parts of Africa.
The bank will partner with ASSIST in organizing joint promotional activities and identifying potential projects for funding under the Green Financing program.
Del Rosario said the agreement between DBP and EMB re-affirms the mutual commitment of both agencies to help industries and other regulated establishments comply with environmental regulations, particularly in matters pertaining to environmental permits and compliance with conditionalities.
DBP with its environmental and other credit facilities will continue to reach out to industries, local government units and other establishments.
“In particular, we fund investments in cleaner production, pollution abatement facilities, sanitation infrastructure, energy efficient transport and facilities, and renewable energy projects. We also fund other ventures for wealth creation and job generation while reducing carbon footprints from their operations.”
-- ------------------------------------------------------------------------ CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031 Emails: carlosani@gmail.com , carlosani@seedfinance.net Landline Phone: +63495010127 (PLDT) Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun) Websites: CARLOSANI.COM - http://www.carlosani.com DEVJOBS - http://www.devjobsmail.com PHILDEVFINANCE - http://phildevfinance.posterous.com My News Clippings - http://www.myclipps.posterous.com Family website - http://www.anifamily.net SEEDFINANCE Corporation - http://www.seedfinance.net Skype name: carlosaniph ----------------------------------------------------------------------- *********** This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you. ***********
BSP to allow thrift, other banks to boost rural banking system
BSP to allow thrift, other banks to boost rural banking system
BSP to allow thrift, other banks to boost rural banking system
SUNDAY, 15 APRIL 2012 18:04 JUN VALLECERA / REPORTER
COUNTRYSIDE lenders should soon get a boost with the plan expanding the
entry of third-party investors in distressed rural banks to include even
non-rural bank white knights as strategic partners.
As implemented at present under the central bank's Special Program for
Rural Banks or SPRB, financially distressed rural banks may take on
strategic partners only with colleagues in the business plus a few
regulatory sweeteners thrown in to encourage consolidation or merger.
This was initially bared by Deputy Bangko Sentral ng Pilipinas Governor
Nestor A. Espenilla Jr. at the sidelines of a recent public forum and
later validated by BSP Gov. Amando M. Tetangco Jr.
"We are looking at ways to further strengthen countryside financial
institutions or CFIs. One option is to enhance the SPRB by enlarging the
pool of possible third party investors to include non-rural banks,"
Tetangco said in a text message on Sunday.
The SPRB is an undertaking recognizing the developmental role played by
lenders in the countryside and providing funds for a facility that helps
distressed rural banks regain financial footing.
A number of rural lenders have been brought back from the edge of
financial ruin by the timely implementation of the SPRB and by the
participation of the Philippine Deposit Insurance Corp. which partnered
with the Land Bank of the Philippines who may actually provide the fresh
infusion of capital to resuscitate ailing rural banks.
But given the preliminary nature of the plans, Tetangco would not share
for now more details to the proposal.
"Details and other possible alternatives are still being discussed," he
said.
Much earlier, however, Espenilla, who heads the powerful supervision and
examination sector at BSP, acknowledged the plan includes the possible
entry of the larger and more financially empowered thrift banks as white
knights to distressed rural lenders.
He said the possible entry of thrift banks is under evaluation by the
Monetary Board, the policy-making body of the BSP.
He did not rule out the participation of the much larger regular
commercial banks down the line when the policy ramifications of such an
entry has been fully assessed.
"This is all part of the plan to strengthen countryside financial
institutions and the role they play in rural finance," Expenilla said.
Rural banks are adequately capitalized but the industry has a worrisome
level of soured or non-performing loans that pushed back to double-digit
territory averaging 10.39 percent as at end-March 2011 representing
latest data.
According to the BSP, this was the third quarter in a series when the
industry's soured loans ratio deteriorated from previous.
The BSP said rural bank soured loans during the period accelerated by
6.49 percent to P10.91 billion from only P10.25 billion three months
earlier and faster than the 1.29 percent expansion of their loan
portfolio collectively totaling P105.03 billion from P103.7 billion.
The souring of loans may not necessarily be alarming at first blush but
over time, the pressure could build up to a level when they become
unsustainable as the mandatory capital charges builds up and
profitability is eroded.
According to the BSP, Mindanao-based rural lenders prove better than
their Luzon or even Visayan colleagues at holding down delinquent loans,
its NPLs having averaged only 5.46 percent as at end-March last year.
Luzon-based rural banks posted NPLs averaging 11.91 percent and
Visayas-based lenders 10.74 percent.
--
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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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Saturday, April 14, 2012
Banks to stay open to receive tax payments
Banks to stay open to receive tax payments
THE TAX bureau's authorized agent banks will be open on Saturday and
Monday up to 5 p.m. to accommodate taxpayers beating the April 16
deadline for the payment of income tax and the filing of annual income
tax returns.
Taxpayers may go to the following banks:
• Allied Banking Corp.;
• Bank of Commerce;
• Bank of the Philippine Islands;
• China Banking Corp.;
• Chinatrust Commercial Bank Corp.;
• Citibank Philippines;
• Deutsche Bank;
• Development Bank of the Philippines;
• EastWest Banking Corp.;
• HSBC Philippines;
• Land Bank of the Philippines;
• Metropolitan Bank & Trust Co.;
• Philippine Bank of Communications;
• Philippine National Bank;
• Philippine Veterans Bank;
• Philippine Trust Co.;
• Rizal Commercial Banking Corp.;
• Security Bank Corp.;
• Standard Chartered Bank;
• Union Bank of the Philippines; and
• United Coconut Planters Bank.
Large taxpayers -- the top 20,000 corporations, top 5,000 individuals
and government bidders -- who use the Bureau of Internal Revenue's (BIR)
electronic filing and payment system can make over-the-counter payments
at the above banks, except Allied Bank, Bank of Commerce, EastWest Bank
and Philippine Veterans Bank.
Meanwhile, small taxpayers who will pay less than P10,000 can do so
using GCASH. They should text "PAYBIR" followed by the amount, personal
identification number, tax type ("IT" for "income tax"), tax form (1700,
1701 or 1702), return period, taxpayer identification number, taxpayer
branch code, revenue district office code and registered name, and send
to 2882.
Individual and corporate taxpayers are required to pay their income tax
and file their annual ITRs, covering their 2011 taxable income, on or
before April 16. The deadline is typically set on April 15, but it falls
on a Sunday this year.
The BIR is tasked to collect P122.815 billion this month, its highest
revenue target for the year due to the payment and filing deadline. --
Diane Claire J. Jiao
--
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CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
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Wednesday, April 11, 2012
Government eyes levy fund to revitalize coco trade
Government eyes levy fund to revitalize coco trade
By Kristine L. Alave
Philippine Daily Inquirer
2:20 am | Wednesday, April 11th, 2012
Impoverished coconut farmers cannot wait forever for the Supreme Court
to ease their plight.
Secretary Joel Rocamora of the National Anti-Poverty Commission (NAPC)
said on Tuesday the Aquino administration was considering borrowing
against the sequestered assets acquired with funds from a coconut levy
imposed for nine years during the Ferdinand Marcos dictatorship.
Rocamora said the move was necessary as the court was taking ages to
resolve the ownership of 24 percent of shares of stocks in San Miguel
Corp. (SMC), which the government froze after the ouster of Marcos in
1986 pending an investigation into whether the portfolio was part of the
ill-gotten wealth the dictator and his cronies had amassed.
NAPC had drawn up a P10-billion, five-year "road map" to revitalize the
coconut industry, Rocamora said. The first year of the program could be
funded with loans.
"The plan is to borrow off the coco levy," he told the Inquirer. "By
June 30, the Aquino administration would be in power for one third of
its term. We don't have a lot of time. Whatever programs we want to do,
these have to be felt by the people. We don't want to wait forever," he
explained.
Rocamora said Budget Secretary Florencio Abad had floated the idea to
him. The Department of Finance has yet to weigh in on this, he said.
Last January, the Supreme Court affirmed a 2004 Sandiganbayan decision
that the controversial portfolio, designated in judicial proceedings as
SMC-CIIF shares, was acquired under the state-administered Coconut
Industry Investment Fund in an elaborate, clandestine scheme involving
14 holding companies, and, therefore, belonged to the government.
Shares valued at P85B
The high tribunal said this asset should now be used to rehabilitate the
industry, wracked by falling harvests because of aging trees and climate
change, and to ameliorate the conditions of some 3.5 million coconut
farmers and their families comprising a fourth of the nation's
population described as the "poorest of the poor."
A motion for reconsideration has been filed by the Philippine Coconut
Producers Federation and the case remains pending. The federation is
claiming ownership of the bloc in behalf of 1 million unnamed coconut
farmers.
An official paper submitted to a Senate committee inquiry put the value
of this
24-percent bloc of 700 million shares of stocks at P85 billion,
including interests and dividends.
Implementing agencies
A year ago, the Supreme Court, in a decision derided by a dissenting
justice as the "joke of the century," awarded another sequestered SMC
portfolio, consisting of nearly 500 million common shares valued at P58
billion at P117 per share, to Eduardo "Danding" Cojuangco, current SMC
chairman and uncle of President Benigno Aquino III. Oppositors said
Cojuangco had borrowed from United Coconut Planters Bank (UCPB), which
he then headed, to purchase the shares in 1983, violating a fiduciary trust.
The Aquino government plans to establish an interagency group to manage
the assets that will be placed in a trust fund, according to Rocamora.
He said no decision had yet been made on how much money should be
borrowed against levy funds deposited in UCPB, which has been criticized
for granting questionable loans to SMC.
He said poverty intervention programs would be implemented by his
commission and the Department of Social Welfare and Development.
Aside from poverty alleviation projects, the money will be used for
fertilizing the soil, replacing old trees, and providing capital for
agricultural enterprises for small they can diversify their income sources.
Neglected sector
About 3.4 million hectares of the country's farmlands are planted with
340 million coconut trees, making the country the world's biggest
exporter of coconut products, according to the Philippine Coconut Authority.
Although the sector is the biggest dollar-earner in agriculture, it is
largely neglected. Rural poverty incidence in coconut-producing
provinces is 60 percent.
The commission has identified 609 poorest municipalities in the country
of which 493 cultivate coconut.
In the first year of the road map, the funds will go to 153
municipalities in Camarines Sur, Leyte, Albay, Quezon, Sorsogon,
Camarines Norte, Lanao del Norte, Northern Samar, Eastern Samar, Davao
Oriental and Sarangani.
Militant groups had urged President Aquino to certify as urgent a bill
that would establish a trust fund for coconut farmers, fearing that the
levy assets would be diverted to finance agrarian reform and the
distribution of Hacienda Luisita, which is owned by his family.
The Cojuangco-Aquino clan is seeking P10 billion as "just compensation"
for the sugar plantation, which the Supreme Court, in a unanimous
decision, in November ordered distributed to its 6,000 farm workers.
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