010807: Ending poverty should be the main goal

Editorial:

Ending poverty should be the main goal

'Pababa ang kahirapan [Poverty is declining],” President Arroyo said in her speech last week during the inauguration of the P745.5-million Domalandan Bridge that links Dagupan City and Lingayen in Pangasinan to the western parts of the province. The President pointed out that during the first half of her term, the number of families living below poverty line went down to 24 percent from 28 percent in 2000.    Forgive us if the latest presidential pronouncement of a 4-percent decline in poverty levels during the first five years of her term, that is, from 2001 to 2005, doesn’t exactly excite us enough to make us ecstatic. What worries us is that a mere 4 percent of the poor have been emancipated from poverty in the past five years, and given this performance, we can expect just another 4 percent to be freed from the clutches of deprivation until the end of her term in 2010. If the antipoverty program proceeds at such a snail’s pace, then it is perfectly understandable that we should raise questions as to whether this government is really making a dent on the poverty situation in the country amid its claims of much improved economic conditions. If we’re not mistaken, recent surveys indicate that roughly half of the population consider themselves poor. And if we’re to believe other surveys indicating that many Filipinos go hungry every day, then we have a far worrisome picture from what the President says. In other words, we have here a yawning gap between official claims and survey results that keeps us wondering whom we should believe. To be sure, there’s enough good news on the economic front that gives us ample cause for optimism that things will be better this year. The Bangko Sentral ng Pilipinas revealed on Friday that the country’s gross international reserves (GIR) in 2006 reached $23 billion, beating the government target of $22 billion. The end-2006 GIR level is $4.51 billion more than what was recorded in 2005, a surge attributed to accumulated reserves from huge dollar inflows in 2006. The current level of reserves was accumulated despite the prepayment of the country’s $220 million remaining loan from the International Monetary Fund, and another prepayment of $72 million worth of assorted loans from the Asian Development Bank. The year-end GIR—equivalent to four times the country’s short-term external debt based on original maturity and 2.3 times based on residual maturity—would be enough to cover about 4.4 months worth of imports of goods and payments of services and income, according to the BSP. The country’s balance of payments (BOP) position—the sum of all the trade in goods and services—also improved last year. While the BSP has yet to disclose the December BOP, the November position has already bested the projected $2.8-billion BOP position for 2006. The country’s 11-month BOP surplus of $3.138 billion was higher than the $2.134-billion BOP surplus recorded over the same period last year. The surplus shows that the country has more than enough foreign reserves to meet all of its foreign currency-denominated obligations.  Meantime, the national government’s budget deficit for 2006 is likely to settle at P81 billion, better than the projected P125 billion set under the fiscal program last year. This would be the fourth straight year of decline, and that is a plus on the government’s balance sheet last year. Viewed in the context of the continuing appreciation of the peso, the surge in the stock market, increased revenue collection, and record levels of remittances by overseas Filipino workers, the other macroeconomic fundamentals, including the all-time high in our foreign exchange reserves, the surplus in our balance of payments and the reduction in our budget deficit all point to better prospects in 2007. But while these are clear economic gains, the proof of the pudding is in the eating. These gains should translate to immediate benefits to those living on the edge of poverty. They should translate to a better life for poor Filipinos in the long-term, and not just fatten up the bank accounts of those already enjoying the wealth of this country. One recalls that after she took her oath of office in January 2001, Mrs. Arroyo said in her inaugural speech that she would work to eliminate poverty in the country by the end of the decade, or by 2010. That deadline disturbed not a few Filipinos, because the 1987 Constitution says that the President should serve for only six years, and she was saying then that she intended to remain in office until 2010, or a good 10 years in Malacañang. But maybe that should be of no import now; what matters is that she delivers on her promise. Last week, Mrs. Arroyo assured the public that the political noise that goes with the midterm elections in May will not be a threat to sustaining the economic gains her administration has achieved, and that her economic team is determined to work harder to meet the government’s macroeconomic targets for the year. Let’s certainly hope so, because the poor, the hungry and the desperate cannot wait forever for deliverance.   http://www.businessmirror.com.ph/01082007/opinion01.html

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042109: EU to RP: 'Donorland is not Disneyland'

Improve governance, stop relying on aid money to eradicate poverty

By Michaela P. del Callar

04/21/2009

Europe's top aid official yesterday admonished developing Asian countries such as the Philippines to improve governance and not to rely on foreign support, saying not one country has been able to rise from poverty through financial help alone.

But even as he said it, Koos Richelle, European Commission director general of the EuropeAid Cooperation Office, said Europe's assistance to developing Asian states will not decline in the next six years amid the global financial crisis, although he noted that recipients must prove that the money is being used effectively.

"Donorland is not Disneyland. Development aid alone can never be enough to change the quality of people's lives," Richelle said in his opening remarks before a gathering of

over 100 senior government officials and politicians from 43 countries across Asia and Europe to discuss current global challenges affecting the two regions in Manila.

According to Richelle, sustainable development "has to be led by quality leadership and governance within individual countries."

The EU is one of the country's largest providers of development assistance and aid, particularly in Mindanao, apart from the United States, Japan and Australia. It has provided support to alleviate the plight of tens of thousands of villagers displaced by the fighting between troops and Muslim rebels starting in August last year.

But Malacañang appears to still bank on foreign aid.

Socioeconomic Planning Secretary Ralph Recto, for his part, said the country would likely miss several millenium development goal (MDG) targets in the reduction of poverty citing the global economic crisis as a reason.

In his remarks to open the Asia-Europe Meeting (Asem) Development Conference in Makati City yesterday Recto said likely to be missed are goals on net employment rate, maternal mortality, and access to reproductive health care.

"Disparities and inequalities across areas, population groups and sectors are widely evident. We anticipate setbacks as a result of the global economic crisis," he said.

To meet the target before the 2015 deadline, the country needs "increased and sustained" assistance from development partners through an increase in official development assistance (ODA) loans.

Aside from increasing ODA, we also reiterate our call on the Paris Club of donors to the country to consider the proposal of the Philippines for debt-for-MDGs swap.

He said the implementation of this program could help developing countries like the Philippines rechannel its resources from debt repayment to programs and projects toward achieving the MDGs.

"Early this year, Germany discussed with our government the option of a debt swap for our health sector programs worth 25 million euros," he said.

We hope other bilateral partners would offer the same, he added.

Recto also cited achievements in meeting other MDGs.

"We have already achieved five years ago, in 2004, the target for access to sanitary toilet facilities; the proportion of people living in extreme poverty decreased from 24.3 percent in 1991 to 14.6 percent in 2006 — well on its way to meeting the 2015 target," he said. Prevalence of underweight preschool children declined from 34.5 percent in 1990 to 24.6 percent in 2005. Infant mortality rate declined from 57 to 24 deaths between 1990 to 2006, while under-five mortality rate dropped from 80 deaths per 1,000 live births in 1990 to 32 deaths in 2006.

The prevalence of HIV and AIDS has been kept below the national target of 1 percent, and access to safe drinking water increased from 73.7 percent in 1991 to 80.2 percent in 2004.

"As we strive to ensure sustainable development, we need to be reminded that not a single country has been lifted out of poverty as a result of development aid alone," Richelle said.

The key factor, he stressed, "has proved to be the quality of leadership and governance.

Richelle also said European assistance to Asia would continue despite the worldwide financial crunch.

"Donors are willing to put more money on the table. The EU remains committed to its target of providing aid equal to 0.7 percent of Gross National Income by 2015," he said.

But Richelle reminded receiving states to put the aid into good use since Europe's parliaments, particularly its taxpayers, "have become more and more interested in seeing tangible results."

The two-day Asia Europe Meeting, which concludes Tuesday, aims to seek ways in addressing the global financial crisis, climate change, social cohesion, the effectiveness of development aid to poor and developing countries, and discuss how nations could meet the United Nations' Millennium Development Goals, Asem states represent half of the world's Gross Domestic Product, almost 60 percent of the world's population and 60 per cent of global trade.

Its members include: Austria, Association of South East Asian Nations (Asean) Secretariat, Belgium, Brunei Darussalam, Bulgaria, Cambodia, China, Cyprus, Czech Republic, Denmark, Estonia, European Commission, Finland, France, Germany, Greece, Hungary, Indonesia, India, Ireland, Italy, Japan, Republic of Korea, Laos, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Mongolia, Myanmar, Netherlands, Pakistan, Philippines, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, Spain, Sweden, Thailand, United Kingdom, and Vietnam.

http://www.tribune.net.ph/headlines/20090421hed1.html 

041909: No Free Lunch - Listening to the poor

No Free Lunch
Listening to the poor
By Cielito Ha bito
Philippine Daily Inquirer
First Posted 23:36:00 04/19/2009

MANILA, Philippines- -I often talk about that farmer I interviewed some years ago after a tortuous ride through what could hardly qualify to be called a road, winding up the mountains of Sarangani to their small uplan= d farming community. Having been in government once upon a time, I like to ask simple folk the one most important thing they would ask of government if given the chance. Almost certain that this upland Sarangani farmer would point to their road badly in need of repair, I was surprised—and wisened—when the old man simply replied: "Horses. We could use a few horses to bring our produce down to the market."

The wisdom in that answer easily dawned on me. He had no illusions that money would be forthcoming to fix some seven kilometers of a narrow mountain road leading up to nowhere—actually to a couple of tiny farming communities with too few voters to matter. And that old farmer must have realized too that fixing their road would only put the still lush forests around them within reach of loggers' trucks.

Cheap fixes
Since then, I have pointed out that meeting our persistent development needs, and meeting the needs of our poor, need not be costly. To use a favorite example I cite in my economics classes, we don't have to run a truck over a nut to shell it.

It seems to me that all we need to do is simply to listen more. The poor know what they need only too well, more than any well-meaning government or NGO worker, and certainly more than any bureaucrat sitting in an air-conditioned office in Manila. And yet, despite all the hosannas in our development documents for devolution, decentralization and subsidiarity (translation: Taking decisions and actions at the lowest levels possible), the reality is that the smallest of decisions that affect the futures of even the remotest poor are still made in the central offices of government agencies. And when allowed to make these decisions, the fixes that are invariably favored are those involving large sums of money, for such things as subsidized fertilizers, imported hybrid seeds, piglets, goats, and yes, farm to pocket—er, market—roads. And unless you were born yesterday, you already know why.

Deaf ears
More recently, a study team I was with interviewed another upland farmer in what was described to be one of the poorest barangays in the country, also in Mindanao. His answer to my usual question, this time, was carab= aos. They needed carabaos to be able to till the land around them, which were noticeably farmable yet idle, in a place where rainfall comes all year round. We asked further what they actually got from the government. His answer? Fertilizers and hybrid seeds. "We take them anyway [even though we=2 0can't use them without the carabaos]," he remarked. We asked, "Did they ever ask you what it is that you really need?"—and got a negative answer.

To be fair, there was a government extension worker—a dedicated, energetic and highly motivated young lady—working closely with the community, clearly having that community's best interests in her mind and heart. Asked if she and her fellow extension workers had not communicated the actual needs of their client communities to their superiors, she insisted that they had done so countless times, but all these seem to fall on deaf ears. "All these programs come to us from Manila, and it seems nothing we tell them could ever change their thinking out there," was her rueful reply.

Changed economics
Another observation struck our team then: Many households we encountered had a small black native pig, which looked something like a wild boar or baboy damo, roaming around the yard. The government-distribu ted white pigs of the foreign Landrace variety were nowhere in sight—only these little black pigs. Landrace pigs could grow over a hundred kilos, but unless fed with commercial feeds and given a minimum of immunizations, get sick and die easily. (I should know; my father raised them in our backyard when I was young to augment my parents' meager salaries as teachers.) But the little black pigs could just be fed kitchen scraps and let loose in the=2 0yard to scrounge around for whatever food they can find. Little as they are, they provide a good source of additional cash in time of need, or of meat for the next festive occasion. And one need not go into debt to buy feeds and veterinary drugs to maintain them.

As an agricultural economics student at UP Los Baños many years ago, countless "costs and returns analyses" we used to do showed that improved varieties, whether in crops ("miracle rice", "miracle that") or livestock (Landrace pigs, Brahman cattle) made economic sense for the farmer. Even with the higher cost of the needed inputs (like fertilizers, chemicals, commercial feeds), the farmer would still make much more money. They key was to make sure farmers had the needed cash through farm credit—something we have failed to provide enough of to this date. Now, with costs of petroleum and farm inputs the way they are, it seems to me the economics have completely changed, and modern varieties do not necessarily bring mean more farm income. The farmer, in short, is being perfectly rational when he shuns hybrids to plant a hardy native rice variety, or shuns the Landrace in favor of the little black pig. Should we force him to do otherwise (and
enrich a few corrupt officials in the process)?

If we really want to help the poor, we simply need to listen to them more. They are much wiser than many of us tend to think—and indeed wiser than many of us, period.
Comments welcome at chabito@ateneo. edu

 

030409: PERA implementing guidelines due for release today

Vol. XXII, No. 151
Wednesday, March 4, 2009 | MANILA, PHILIPPINES

Banking & Finance

THE CENTRAL BANK is set to release today the implementing rules of the Personal Equity and Retirement Account (PERA) Act.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor A. Espenilla, Jr. told reporters at the sidelines of a forum yesterday that "we are targeting to release it tomorrow, if all goes well."

The PERA law is aimed at encouraging Filipinos to prepare for retirement. The measure was ratified by Congress in June and signed into law by President Gloria Macapagal-Arroyo in August.

A contributor may set up a maximum of five PERA and make an aggregate maximum contribution of P100,000 to his or her PERA per year. He or she will enjoy an income tax credit equivalent to 5% of the total PERA contribution.

The PERA law, or Republic Act 9505, has designated the BSP as the lead agency that will draft the implementing guidelines pertaining to the qualification of PERA administrators, custodians and investment managers and the qualification of PERA investments.

The BSP shall be assisted by the Finance department, Bureau of Internal Revenue (BIR). It took comments from the private sector.

The BIR, on the other hand, has been tasked to draw the implementing guidelines on tax-related provisions of the PERA law.

The BIR said it has already finished a draft revenue regulation but will have to see the implementing rules drawn by the BSP.

"The [revenue regulation] draft is ready. But we have to see first the mother IRR (implementing rules and regulations) to be issued by the BSP. The two should complement each other," said BIR Director Eufrocina S. Casasola in a telephone interveiw.

She said the bureau will release the final revenue regulation as soon as it finishes reviewing the BSP’s guidelines. — P. L. G. Montecillo and A. D. B. Romero

http://www.bworldonline.com/BW030409/content.php?id=024 

030409: Higher deposit insurance OK'd - Bicam approves new ceiling of P500,000; measure off to Palace next week

Vol. XXII, No. 151
Wednesday, March 4, 2009 | MANILA, PHILIPPINES

Today's Headlines

BY BERNARD U. ALLAUIGAN, Reporter

A MEASURE DOUBLING the insured deposit ceiling to half a million pesos and strengthening the state firm tasked with providing the cover was approved yesterday by a bicameral panel.

The proposed law — a consolidation of Senate Bill 2964 and House Bill 5911 — will be ratified today before it is brought to Malacañang for President Gloria Macapagal Arroyo's signature next week, legislators said.

They did not disagree over the doubling of the maximum deposit insurance coverage to P500,000 — a move expected to shore up depositor confidence in the local banking system amid bank failures in the United States and Europe.

But senators agreed to drop a proposal to increase the assessment premiums paid by member banks to PDIC. SB 2964 provided an increase to 1/2 of 1% of total deposits, from 1/5 of 1%, three years after the new law takes effect.

Suzanne L. Felix, Chamber of Thrift Banks executive director, said keeping the provision "would mean a decrease in interest rates that will be given to depositors. The bottomline is this would hurt the banking public."

House panel member and Camarines Sur Rep. Luis R. Villafuerte said PDIC's annual collection was "enough" to cover all deposits.

"It will be authorized to increase the assessment rate if its deposit insurance fund has depleted to less than P35 billion .... In the last five years, PDIC paid only P7 billion [to depositors] but its annual collection totalled P8 billion," Mr. Villafuerte said.

He noted that PDIC's deposit insurance fund — from which payments are sourced — was healthy at around P60 billion as of end-2008.

PDIC President Jose C. Nograles proposed that a "standard assessment rate" be included in the reconciled bill to ensure the deposit insurer is able to cover insured deposits.

But with the strong opposition, Manila Rep. Jaime C. Lopez, House banks and financial intermediaries committee chairman, suggested that Congress meet again after three years to adjust the assessment rate, to which Mr. Nograles agreed.

"We have assurances [from the panel] that, moving forward, we will be able to [revisit the assessment rate]. Anyway, we have gotten some financial strengthening [measures] like tax exemptions and the ability to raise bonds with sovereign guarantee," Mr. Nograles said.

The bicameral panel agreed to give the PDIC tax perks such as exemption from income tax, final withholding tax, and value-added tax on the assessments premiums paid by member banks.

A Senate proposal to exempt the PDIC from documentary stamp and capital gains taxes on the transfer of assets from banks was dropped.

But legislators agreed to keep a Senate recommendation providing a sovereign guarantee to PDIC debt issuances on the condition these not twice exceed the deposit insurance fund.

The government will have to pay half of the P500,000 cover for three years after the new law takes effect. Legislators specified that an automatic appropriation in the national budget be made.

A joint congressional oversight committee will be convened to review the assessment rate and determine how much the government needs to allocate for deposit insurance payments.

Members of the bicameral panel also scrapped a provision proposed by the Senate that lists the types of deposits not covered by insurance. Mr. Villafuerte said the list was "too broad."

Under SB 2964, deposits that are marketed, solicited, accepted, received, evidenced by or recorded in violation of the law or the rules and regulations of the central bank should not be insured by the PDIC.

"Violation of the rules rests on the banks, not the depositors. Why should we make the depositors suffer for not knowing all the laws and regulations?," Mr. Villafuerte argued.

The panel agreed to adopt a Senate proposal to give PDIC a bridge bank authority. Bridge banks are subsidiaries or firms approved by the central bank to manage assets acquired from failed banks.

"We need this legislation to build up public trust and confidence in light of the financial crisis," Mr. Lopez said.

http://bworldonline.com/BW030409/content.php?src=1&id=001 

090108: Trade, not aid, crucial in fight versus poverty

Vol. XXII, No. 26
Monday, September 1, 2008 | MANILA, PHILIPPINES

Today’s Headlines

GENEVA — As ministers from over 100 countries gather in Ghana to review how effective aid is in helping developing nations deal with poverty, many economists argue the answer is elsewhere — in freeing up trade.

The meeting in Accra this week comes just over a month after talks at the World Trade Organization (WTO) to secure a breakthrough in the long-running Doha round collapsed at the end of July.

Rich and poor countries alike have called for efforts to save the Doha round and build on the compromises that were reached in July’s talks. Senior negotiators are likely to meet in September to see whether the talks can be revived.

Economists of all persuasions agree now that growth is the key to lifting people out of poverty — a view reinforced by a major World Bank report in May on growth and development.

And the key to growth is trade, the WTO says. "Trade openness is believed to have been central to the remarkable growth of developed countries since the mid-20^th century and an important factor behind the poverty alleviation experienced in most of the developing world since the early 1990s," it said in July.

Many developing-country leaders share the view that the solution to poverty lies in the increased economic capacity that trade can bring rather than in aid handouts.

The Doha round, launched in the Qatari capital in late 2001, was expressly intended to help developing countries export their way out of poverty, by tackling the unfinished business of previous trade rounds such as the distorted global food trading system.

Many advocacy groups argue that trade negotiations are still skewed against the interests of poor countries.

The Manila-based Focus on the Global South said the collapse of the Doha talks was a welcome respite for poor countries.

"The aggressive push by the rich countries led by the US and the EU for more trade liberalization at a time of global crises of food and fuel [became] too blatant for developing countries to stomach," it said.

But many changes sought by developing countries — such as cuts in US and EU farm subsidies — have been on hold since the Doha talks collapsed.

Developing countries also recognize that they benefit from the rules-based multilateral trading system the WTO represents, not least because of the power it gives small and weak members.

For developing countries, many of which are in unstable areas, the security aspects of trade are also important.

Trade and aid are closely linked.

The WTO coordinates the international Aid for Trade program, in which developing countries are helped to build trade capacity and infrastructure by ensuring that their trade projects are part of their aid and economic strategies.

And one of the trickiest parts of the Doha agenda covers food aid. The proposals would tighten rules on "monetization" where rich countries send food surpluses to developing countries to be sold locally and the funds distributed.

The aim is to prevent this being used as a disguised export subsidy which squeezes local farmers out of business. — Reuters

http://bworldonline.com/BW090108/content.php?src=1&id=005 

082208: PERA bill becomes law today

Vol. XXII, No. 20
Friday, August 22, 2008 | MANILA, PHILIPPINES

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Today’s Headlines

BY ALEXIS DOUGLAS B. ROMERO, Reporter

PERA bill becomes law today

Tax-free private pension schemes expected to boost savings rate, economy

A LAW ALLOWING for tax-free private pension schemes aimed at encouraging workers to save for their retirement will be signed today by President Gloria Macapagal-Arroyo.

Palace ceremonies this morning will be attended by leaders of the House of Representatives and the Senate, as well as officials of the Philippine Chamber of Commerce and Industry, Employers Confederation of the Philippines, and the Philippine Stock Exchange.

"It is a very welcome development because this is a long-overdue bill," House Majority Leader Arthur D. Defensor said in a telephone interview.

http://bworldonline.com/BW082208/content.php?src=1&id=001

082708: 'Credit alone is not the panacea'

Vol. XXII, No. 23
Wednesday, August 27, 2008 | MANILA, PHILIPPINES

Today’s Headlines

BY FELIPE F. SALVOSA II, Sub-Editor

‘Credit alone is not the panacea’

FOR ALL the recognition bestowed on microfinance for being a tool to reduce poverty, a founder of one of the country’s biggest microfinance institutions readily acknowledges that "credit alone is not the panacea."

Jaime B. Alip, founder of microfinance institution CARD MRI which won this year’s Magsaysay Award for public service, gestures during an interview yesterday. —Jonathan L. Cellona

In many ways, Jaime Aristotle B. Alip, managing director of CARD MRI, follows the footsteps of "Banker to the Poor" Mohammad Yunus, founder of Bangladesh’s Grameen Bank.

San Pablo, Laguna-based CARD MRI, which stands for Center for Agriculture and Rural Development Mutually Reinforcing Institutions, is this year’s winner of the prestigious Ramon Magsaysay Award for public service.

Mr. Yunus won the Magsaysay Award in 1984 and went on to win the Nobel Peace Prize in 2006.

When Messrs. Alip and Yunus first met in the 1980s, the former was highly skeptical of the concept of lending to the destitute. But Mr. Alip and 14 others later became believers and went on to found CARD in 1986, aiming to serve landless rural women in the southern Luzon region.

Today, CARD is the largest employer in the local microfi-nance sector with over 2,800 staff members and has served more than 700,000 poor families. The group has grown to more than 600 offices with operations in Cambodia, Vietnam, and Indonesia — a far cry from its beginning of merely P20 in capital and a "magic typewriter" that Mr. Alip used to make proposals.

How CARD MRI is different from Grameen and other traditional microfinance institutions in the country may ultimately spell its continued relevance as a vehicle for social development.

It modified the loan circle concept, in which a group of 30 people would be held responsible if one decides to default, creating moral pressure on all members to meet their own obligations. This would mean blacklisting 29 people for just one person’s delinquency.

In the way CARD MRI works, loans are an individual responsibility. Like other outfits, loans start small, at P5,000 for the first cycle, with affordable repayment terms running from six months to a year. Only women are given loans.

More than P5 billion has so far been disbursed, and the near-perfect repayment rate of more than 99% is the best in the sector.

Mr. Alip is no stranger to criticism regarding the effectiveness of microfinance as a poverty-reduction tool. When Mr. Yunus got the Nobel two years ago, one US commentator wondered whether the award should have been given to the Wal-Mart founder, arguing that the retail behemoth had lifted more people out of poverty by simply sourcing its stocks from the Third World’s cheapest sources.

Still, "Microfinance is the best thing that ever happened to the poor," the Harvard-trained Mr. Alip told BusinessWorld. "You have to give them hope. You have to give them a chance to rise out of poverty."

To prove its point, CARD MRI has set up shop in Sulu and Tawi-Tawi, conflict-ridden places where no other lender or multinational firm would ever open. Repayment rates have also been "near-perfect".

CARD MRI’s internal assessments, done every two years, show that 80% of members have attained a better quality of life, he said.

"Our members are able to have increased incomes and improved business activities. They send their children to school and provide food and housing to their families. At the same time they are able to reinvest in their businesses," Mr. Alip said.

The fact that members are able to send children to college because of increased incomes from entrepreneurial activities attest to the value of microfinance in rural development. "That’s breaking the bond of poverty," Mr. Alip said.

"But there is life after micro-finance," he added. "The challenge is for microenterprises to get to the next level, SMEs (small and medium enterprises)."

"By my experience, it takes three to five years to lift our members out of poverty, and five to eight years to stabilize them," he said. "Our nanays (mothers) are able to employ eight to 15 people and pay them minimum wage."

But the chances of members sliding back to poverty will become "nil" if they are able to transform into SMEs, he said.

This is where other CARD MRI programs come in. CARD MRI now has business development services, geared at integrating microentrepreneurs into the mainstream economy by helping them expand, reduce production costs and making them financially viable.

"We have an integrated approach," Mr. Alip said. "Credit alone is not the panacea. We have to bring in other programs."

In 1997, CARD MRI achieved an ambitious goal of putting up its own bank, CARD Bank, at a time when the Asian financial crisis was beginning to take its toll. It was the first nongovernment microfinance outfit in the country to achieve such as feat.

CARD Bank branches are often filled with people that casual observers may think there’s a bank run. But rural folks patronize the bank for a variety of services like regular, emergency, and housing loans, as well as savings products. Members pledge to save P40 a week, and the money earns market-level interest rates.

More than 2.7 million people have been insured by the CARD Mutual Benefit Association, providing members with a social safety net. The package includes death and funeral benefits, medical subsidies, and pensions.

"With insurance, members can quickly rebuild their asset base [in case of a tragedy]," Mr. Alip said.

When there’s a calamity there’s a moratorium on loan repayments, and CARD MRI personnel go out to provide relief and other assistance. "This, the clients value very much," he said.

Mr. Alip takes pride in the fact that CARD Mutual Benefit Association is owned by members and managed with the help of professionals.

"That’s what empowerment is all about. It’s not just about access to assets, but also control of the assets," he said.

But microfinance still has a long way to go in the Philippines. So far, only two million people has been reached by the entire sector, and the government estimates that 5.6 million need the services of microfinance, Mr. Alip said.

In terms of the number of borrowers, Filipino microfinance groups do not figure prominently in the recent ranking released by the Asian Development Bank which is dominated by the likes of Grameen which has 6.3 million borrowers. CARD MRI and two others made it to the top 50.

CARD MRI wants to expand its reach to one million people in the near term, and over the next decade, strengthen its business development arm.

"CARD will never stop until I give a loan to the last poor family in this country," Mr. Alip said.

http://bworldonline.com/BW082708/content.php?src=1&id=003 

091108: Development being held back by 'anti-countryside bias'

Vol. XXII, No. 34
Thursday, September 11, 2008 | MANILA, PHILIPPINES

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Today’s Headlines

Development being held back by ‘anti-countryside bias’

THE GOVERNMENT should increase its support for the countryside in terms of providing more funds for infrastructure and proactive intervention if it wants to lift more Filipinos out of poverty, a former Cabinet official yesterday said.

Provincial areas, economist Cielito F. Habito told a forum hosted by the Ateneo Professional Schools, appear to have been left behind given an "anti-countryside bias of economic policies, interventions and outcomes".

Recent moves to mitigate the impact of high food and fuel prices, for example, seem to have worked in favor of people in Metro Manila as reflected in higher inflation rates in the provinces.

Inflation went up to a new near 17-year high of 12.5% in August. The year-on-year rise in areas outside the National Capital Region was 14.2% for the month, higher than the metropolis’ 8.7%.

http://bworldonline.com/BW091108/content.php?src=1&id=007 

091308: Billion-peso buffer fund in '09 to support infrastructure projects

Vol. XXII, No. 35-A
Saturday, September 13, 2008 | MANILA, PHILIPPINES

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Today’s Headlines

Billion-peso buffer fund in ’09 to support infrastructure projects

A billion-peso standby buffer fund has been set aside in next year’s budget to lessen foreign exchange risks of foreign-assisted infrastructure projects.

In a statement, Budget Secretary Rolando G. Andaya Jr. said the General Fund Adjustment (GFA) will ensure that projects will not be hampered "because there is no mechanism for fund augmentation when forex (foreign exchange) loss is incurred."

Mr. Andaya said the GFA will cover additional costs due to revaluation after the project’s implementation, and from increased expenses due to inflation, in which case the government goes back to the foreign donor for additional assistance.

The government usually asks donors to fast-track the fund release when the cost is cheaper due to a strong peso. On the other hand, a weaker peso against the dollar tends to slow down project implementation. In both cases, additional funding is expected from the original allotment.

Mr. Andaya said the P1-billion fund has safeguards against possible diversion.

http://bworldonline.com/BW091308/content.php?src=1&id=001 

091508: Learning the basics of making money

By Jenny Santillan-Santiago
Philippine Daily Inquirer
First Posted 06:44:00 09/15/2008

MANILA, Philippines—Entrepreneurs are born, not made.

That may have been true before but in today's cut-throat business competitions, the notion has become passé.

"What may be inborn is the appetite for risk-taking, which you can't teach, but creativity and inspiration, without discipline, are fatal," said Dr. Ricardo Lim, associate dean of AIM-W. SyCip Graduate School of Business.

He said good business ideas would fail without management techniques, a "steady science" that could be learned in school.

Education was important if an entrepreneur was to succeed, said K. Brian Keegan, managing director and global head for Capital Structure Advisory and Solutions of JP Morgan Securities, New York.

Lim and Keegan were among the speakers at the recent "Entrepreneurship and Innovation in a Complex World" forum sponsored by the Asian Institute of Management (AIM).

The event launched the school's new programs on innovation and entrepreneurship.

Generating wealth

"Entrepreneurs are in the business of making money and our greatest mission is to prepare people to generate wealth for generations to come," said Keegan. "Entrepreneurs search for innovative ways to create wealth."

The speakers said education was important because a person turning a good idea into a business would need managerial skills to make the enterprise grow.

Lim said educational institutions like AIM could help provide a person the knowledge and skills to find investors by teaching him to communicate an idea and to improve an existing product so it would appeal to different markets.

He gave as example businessman Vicvic Villavicencio. "He started with Saisaki then expanded his concept from Japanese to Western and continued to improve his business by buying all his materials in bulk so he can afford to give his customers lower prices."

Lim said AIM's new MBA Major in Entrepreneurship program (MBA-entrep) would equip students with "steady science" in managing business systems, finance, accounting, people and teams, marketing, etc.

He said an entrepreneur generated "a win-win situation," creating value or positive experiences for customers by using innovative techniques.

Another example he gave was AIM graduate Raffy David who engaged in door-to-door passport delivery. David's business makes things easier for both passport applicant and the Department of Foreign Affairs (DFA).

New ways

AIM dean Victoria Licuanan said renowned economist Joseph Schumpeter described entrepreneurship as "creative destruction" because new ways of doing things would replace and even destroy old ones.

An entrepreneur must constantly create new businesses or scale them up since the world is constantly changing.

Lim said this was the key to the success of Tony Fernandez of Air Asia and Tony Tan Caktiong of Jollibee, who both "have an appetite for risk, have big ideas for new ventures, and have the ambition to grow in quantum leaps."

Fernandez adopted the western concept of budget travel while Tan transformed a small Cubao ice cream store into a big fastfood chain.

But a college degree does not necessarily develop the "entrepreneurial mentality," or the willingness to invest and take risks.

"At AIM, we try to develop the student's entrepreneurial mentality, and teach him how to start a business, how to communicate his business plan, how to honestly assess the environment," Lim said.

Case method

The MBA-entrep program uses the case method. Students learn more from each other's experiences.

The 16-month program, to be taken after the regular core MBA, offers courses that are oriented towards innovation, entrepreneurship, seeking venture-capital, and developing business models. In the core MBA course, students learn thinking and analytical skills to solve complex problems.

Lim said the new MBA-entrep program was aimed at younger people "who need to develop the entrepreneurial mentality to take risks; or who may already have that kind of mentality but don't know how to start a business; or who are still in the process of developing a business idea."

While many MBA-entrep students might not want to become entrepreneurs right after graduation, Lim said, "The MBA-entrep degree gives them time to incubate ideas, time to develop the entrepreneurial mentality and to accumulate the technical skills they need, and help locate the actual resources to put their ideas into action."

Dr. Grace Ugut, associate dean of AIM-Executive Education and Lifelong Learning Center, said the Executive Education Program for Entrepreneurs and Business Owners was another new program designed to address the special challenges of entrepreneurial and family-managed firms.

To fit the learning needs and schedules of entrepreneurs and business owners, aspects of the courses might be conducted online or face-to-face in a classroom setting, she said.

Ugut said the program helped promote the development of firms and entrepreneurs through a three-tier approach:

Top tier provides broad strategic management education to break barriers to participants' and their businesses' growth and transformation.

Core tier, a three-week development program, aims to professionalize entrepreneurial management by building core business leadership competencies.

Base tier are two- to three-day entrepreneurship courses addressing specific skills training needs—business plan writing, finance, marketing, strategy, and supply chain management.

http://newsinfo.inquirer.net/inquirerheadlines/learning/view/20080915-160710/Learning-the-basics-of-making-money 

091808: Citi CEO: Uncertain times call for investor caution

Vol. XXII, No. 39
Thursday, September 18, 2008 | MANILA, PHILIPPINES

Today’s Headlines

BY FELIPE F. SALVOSA II, Sub-Editor

Uncertain times call for investor caution

WITH GLOBAL financial markets in bigger trouble due to woes surrounding Wall Street heavyweights, investors should remain conservative and wait for the eye of the storm to pass before taking any more risks, regional officials of financial services firm Citi yesterday said.

CITI CEO for Southeast Asia and the Pacific Piyush Gupta gestures as he speaks to journalists yesterday. The Citi executive, in town for a visit, cautioned investors to be mindful of where they park their funds. — Jonathan L. Cellona

"The markets are going to stay turbulent until next year," Piyush Gupta, Citi CEO for Southeast Asia and Pacific, told journalists.

"Be thoughtful and cautious. It’s not the time to take undue risk because a lot of things can go wrong," said Mr. Gupta, in Manila for a brief visit.

With wild market swings a constant threat, investors should put their money where there is a guarantee the initial investment will be recovered.

"It’s the time for principal protection. Look for stuff where the principal is safe," Mr. Gupta said, adding "It’s a very difficult market, both on the fixed-income side and the equities side."

That goes without saying that stock markets are particularly not a good place to park money for now. "Take this as an opportunity to wait. It’s better to err on the side of caution," he said.

Citi, which had its share of woes late last year amid the US credit crisis but was able to raise $50 billion in capital since January with some help from Middle East money, is still safe to do business with, Mr. Gupta said.

After writing off a lot of subprime-related assets, divesting non-strategic businesses like a German consumer unit and foreign capital infusion, "capital adequacy is stronger than last year," he claimed.

"We don’t have the monoline model of other Wall Street firms who have high leverage and poor sourcing of liquidity," he added, boasting of $800 billion in deposits, of which two-thirds are outside the US.

Citi is exposed to Lehman bonds but "it’s insignificant," Mr. Gupta said. "It’s not a concern for us at all ... We can manage the process better than out competitors."

The Citi executive said the bank would be putting more capital in Asia now than elsewhere, adding that the Philippines has become a "fantastic market from a demographic standpoint," pointing to a growing middle class and a developing corporate debt market.

The bank gave credit to the government’s improved fiscal position, which has allowed the Philippines to continue investing in infrastructure to shore up economic activity amid the global slowdown.

"The better sociopolitical and economic climate gives us a lot of confidence now than the early part of this decade," Mr. Gupta said.

Sanjiv Vohra, Citi’s Philippine chief, said there were bright prospects in the property and the oil, gas and natural resources sectors.

Hopefully, legislators will be able to pass the law on real estate investment trusts or REITs before the year ends to perk up the domestic market, he added.

Mr. Vohra said Citi would be pushing all of its local activities — cash management for corporate clients, business process outsourcing where it has 2,000 workers, savings through a 50-strong branch network, and credit cards where it controls 30% of the market.

In the Philippines, Citi was number two in profits last year, Mr. Vohra noted.

It helped facilitate the Philippines’s only successful initial public offering this year: San Miguel Brewery.

http://bworldonline.com/BW091808/content.php?src=1&id=003 

051605: Back to Basics - PhilEquity Fund, Inc

Back to Basics
None
5/16/2005 9:11:47 AM
Philequity Fund, Inc.

We had just completed the recent board meeting of the Philequity Fund and as always, our discussion was very fruitful with lots of key insights. Personally, I always look forward to these meetings as we discuss with our distinguished board of directors and analysts the key global and domestic issues. Based on this discussion, we deliberate on the future direction of the domestic economy and equity market.

We have always prided ourselves with our distinguished board of directors which include: Former Finance Secretary Vicente Jayme, SGV Founder Washington Sycip, Land Bank President Gary Teves, Lepanto Chairman/CEO Felipe Yap, Enrique Esteban (CRC/UAP President), Violet Luym (Director, Banco De Oro), Roberto Lorayes (Former PSE Chairman) and Greg Yu (Chairman CAT motors).

Given their respective credentials and diverse backgrounds, you can just imagine the insights we get in our discussions during our meetings. This is the hallmark as to why Philequity continues to be the best performing equity fund in the country over the past 11 years with a compounded annual growth of 19.5%. During this time, a Peso invested in Phil Equity Fund in 1994 would now be P7.00 based on present NAV while a similar to the Phisix is now worth P0.60.

Philequity Fund vs Phisix (since 1994)


Going back to our discussions on the market, we agreed that the passage of the new VAT law would shift investor’s attention “back to basics” . This means that the possible debt restructuring would have been averted by the passage of the VAT law. It then assures an improving fiscal position in the years to come. The market can then focus on issues pertaining to global and regional events.

As you may well know, investors were pricing the local equity market at a discount relative to the region from early March to the lows of April mainly due to the VAT issue. During this time, the region posted a decline of 9.5% versus the Phisix which declined by as much as 16.1%. This is a clear indication how foreign investors put importance on the progress of our fiscal reforms and how they would most likely continue to do so going forward.

On the global and regional side, markets continue to await the developments in the US economy. We share the view of most global analysts that for the rest of the year, equity markets would remain range bound mainly due to uncertainties on US economic growth and its interest rate policy. Recall that the US Fed has gradually raised interest rates over the past several months and any acceleration to that end (mainly as a result of higher inflation) would be detrimental to global equity markets.

It should be noted that Oil prices went to as high as $58/bbl in early April but has since declined due to higher crude inventory, seasonal softening (entering summer months) and higher OPEC production. But the question remains whether such a scenario would still be in place in the second half of 2005 especially as winter draws near. In fact, a recent study by Goldman Sachs economists shows that if oil prices averages above $65/bbl, the global economy has a very strong chance of reverting back into a recession. Goldman is currently forecasting a $60/bbl average for 2006.

Given this, we would be watching closely the developments of oil prices as this would have a direct correlation to global equity markets including the Philippines. Higher oil prices would trigger higher inflation which will result in higher interest rates. This in turn would have a negative effect on economic and corporate growth.

On the positive side, one thing going for Asian equities is its attractive valuation relative to other equity markets in the world. This is the reason why most big research houses like Goldman and JP Morgan are expecting limited downside on Asian equities In fact, as seen from the chart below, we can see that in terms of PE to Growth (PEG) and Price to Book Value versus Growth, the Philippines is attractively valued compared to its regional counter parts.

Regional PEG Valuation


Regional Valuation (P/BV vs EPS Growth)



Another factor which we think could push the regional market higher would be the possible revaluation of the Chinese currency. Recent events have once again resurfaced that the RMB maybe set to revalue (some say by 3% to 5%) over the next 12 to 18 months given recent economic data (e.g. Chinese Trade surplus) highlighting Chinese domestic imbalance. This has been compounded by increased international pressure (particularly from the US) to do so.

Economists expect that a revaluation of the RMB would result in an appreciation in regional currencies as well as asset prices like real estate and equities. It is likely that such a situation maybe the catalyst that the regional markets may need to move higher and resume the uptrend.

Based on our discussion on the global and regional developments, we believe that the local equities market would be in a consolidation phase in the near term. The US economy and the US stock market, which is a barometer to global markets, is still finding direction given the ongoing uncertainties. US interest rates are still on the move up, oil prices is still volatile and there are also concerns of a slowdown in European and Japanese economies. On the local front, wage and fare hikes, power rate increases and corporate tax increase would be a dampener on the local economy and corporate profits. Given all these and the fact that a lot of investors were hurt by steep decline in our market the past two months, the equities market would need to form a base as a “spring board” for the next bullish phase.


Market at the crossroads...


On the lighter side……

On one of the lighter moments of the meeting, Wilson Sy was commenting on how Phil Equity has grown over the years (with additional funds like Dollar Fund, Fixed Income Fund etc) and how the fund level has increased its size over the past few months.. He also mentioned on how we have to work harder this year in order to continue improving our performance considering now the we are the biggest domestic equity fund in terms of size. Washington Sycip made an interesting comment where he said, “it is easier to manage one wife than several wives….” (Alluding to the comment that we now have to manage several fund and a bigger equity fund level).

 

110507-More Pinoys rate selves as 'poor'

Vol. XXI, No. 70
Monday, November 5, 2007 | MANILA, PHILIPPINES

Today's Headlines

BY ALEXIS DOUGLAS B. ROMERO, Reporter

MORE FILIPINO FAMILIES, about nine million of them, consider themselves "mahirap" or poor, the results of a new Social Weather Stations (SWS) survey showed.

The self-rated poverty incidence of 52% for September was up from June's 47% but still far from all-time highs, the independent survey research institute said.

Self-rated poverty fell in the Visayas but the numbers increased in the rest of the nation, and the SWS noted further belt-tightening among poor families.

A Palace spokesman said a lack of awareness regarding state anti-poverty and hunger mitigation programs may have contributed but an economist said this results may have been due to lapses in the way the programs were carried out.

The survey results, made exclusive to BusinessWorld, also found that 43%, or about 7.5 million Filipino families, considered themselves poor in terms of food. This self-rated food poverty was up from the 37-39% in the first two quarters of 2007.

Again, a drop was noted in the Visayas but the numbers increased elsewhere.

The SWS Self-Rated Poverty surveys, conducted since 1985, asks household heads to point to where their families are on a card marked "mahirap (poor)" on one side and "di mahirap (not poor)" on the other, with a line in between.

The third quarter survey was conducted over September 2-5, 2007 using face-to-face interviews of 1,200 adults divided into random samples of 300 each in Metro Manila, the Balance of Luzon, Visayas, and Mindanao. The sampling error margins were ±3% for national percentages and ±6% for area percentages.

In the Visayas, self-rated poverty fell to 47%, the second-lowest level since the series started.

It, however, rose 19 percentage points in Mindanao, to 68% in September from 49% last June. It rose slightly in the Balance of Luzon (50%) and Metro Manila (41%).

In urban areas, self-rated poverty fell to a relatively low 44%. It was up by nine percentage points in rural areas, however, to 63% in September from 54% in the previous survey.

In terms of self-rated food poverty, the SWS said that aside from the 43% which considered themselves as "food-poor," 25% put themselves on the "food-borderline" and 32% considered themselves "not food-poor."

Self-rated food poverty dropped to 33% in the Visayas but rose sharply to 59% in Mindanao. It rose slightly in Metro Manila (33%) and in Balance Luzon (41%).

Thresholds still sluggish

The SWS said both the self-rated poverty threshold — the monthly budget that poor households need in order not to consider themselves poor in general — and the self-rated food poverty threshold — the monthly food budget that poor households need in order not to consider themselves poor in terms of food — have been sluggish for several years despite considerable inflation.

"This indicates that poor families have been lowering their living standards, i.e., tightening their belts," the SWS said.

For poor households in particular, the median poverty threshold in Metro Manila was P10,000 in the September 2007 survey, despite having reached as much as P15,000 several times in the past.

In the Balance of Luzon, the threshold was P6,000; and in the Visayas and Mindanao, P5,000, the results showed.

The median food-poverty thresholds for poor households, meanwhile, was P4,500 in Metro Manila, and P3,000 in the other three study areas.

The SWS noted that in Metro Manila, both the food and total thresholds had considerably weakened against the Consumer Price Index (CPI), which rose by over 40% from the base year of 2000.

It said a declining poverty threshold, despite a rising cost of living, means Filipino households were lowering their living standards.

The September 2007 median poverty threshold of P10,000 per month in Metro Manila was equivalent to only P6,863 in base year 2000 purchasing power, the SWS said, a throwback to the living standards of 20 years ago.

In four SWS surveys in 2000, the base year of the CPI, the median poverty threshold for Metro Manila was already P10,000 per month, equivalent to P14,570 based on the September 2007 cost of living.

The difference of P14,570 — P10,000 = P4,570 between the thresholds of 2000 and September 2007, the SWS said, measures the extent of belt-tightening that took place.

The median food poverty threshold of P4,500 in Metro Manila, meanwhile, was said to be equivalent to only P3,373 in base year 2000 purchasing power, the second-lowest deflated food poverty threshold recorded after the P3,075 in the last quarter.

The SWS said the median food poverty threshold in December 2000 was P6,000 for Metro Manila, equivalent to P8,004 based on the September 2007 cost of food.

The difference of P8,004 — P4,500 = P3,504 was the extent of belt-tightening made by food-poor Metro Manila households.

Relationships

The SWS said household heads' ratings of their general poverty, food poverty, and experience of involuntary hunger were internally consistent. Among the self-rated food poor, the proportion of households experiencing hunger in the past three months was 31%, but only 14% in both the not food-poor and the food-borderline.

Severe hunger, referring to families who experienced hunger "often" or "always" in the last three months, was 4.7% among poor households, 4.9% among the not poor, and 1.7% among families on the borderline. It was 6.5% among the self-rated food poor, compared to 2.8% among the not food-poor, and 1.6% among those on the food-borderline.

Moderate hunger, referring to families who experienced hunger "only once" or "a few times" in the last three months, is 23.5% among poor households, 9.7% among the not poor, and 12.3% among those on the borderline. It was 24.9% among the self-rated food poor, 11.1% among the not food-poor, and 12.9% among families on the food-borderline.

The SWS said that "as a concept, poverty allows for various degrees of deprivation. Those who suffer from hunger are much more deprived than those who simply suffer from poverty." The survey institute's latest report on hunger was released last month.

Reactions to survey results

Ma. Lorelei Fajardo, deputy spokesman of the Office of the Press Secretary, said sufficient anti-poverty programs exist but not all people were aware of them.

"There are a lot of projects that have yet to be known at the grassroots level," she said.

"Some people think the government is doing nothing to address poverty and hunger but in fact we have a lot of programs like microfinance programs, cheap rice, farm to market roads, stores that sell lower-priced goods and various livelihood trainings."

She said the National Anti-Poverty Commission would meet this week to assess the government's pro-poor projects, in line with a recent directive by President Gloria Macapagal-Arroyo craft concrete plans on how to cascade economic gains to marginalized sectors.

But Fernando T. Aldaba, an economist from Ateneo de Manila University, said "leakages" in the implementation of pro-poor programs prevent their benefits from reaching intended beneficiaries.

"For instance, a study by the PIDS (Philippine Institute for Development Studies) shows that the targeted poor people are not reached by the food for school program. These are caused by factors like politics where the politician influences the selection of beneficiaries. It is possible that there are also leakages in other programs," he said.

The PIDS study, released last July, criticized among others the way by which the beneficiaries of the Food for School program were determined.

Mr. Aldaba said the government must improve its targeting rules so that its programs could really help people in poorest municipalities. He also called for more investments in education and training to enable people to find jobs.

"There should also be growth in sectors where you can find the poor like agriculture and tourism. The government must also spread spending in regions and not be biased in urban areas," Mr. Aldaba said.

http://www.bworldonline.com/BW110507/content.php?id=001

092007-Stocks, peso surge after Federal Reserve rate cut

Philippine stocks rose the most in almost three weeks after the US Federal Reserve cut its benchmark rate more than expected to bolster growth in the country’s biggest export market. Philippine Long Distance Telephone Co. (PLDT) and Ayala Land Inc. led the advance. “Any rate cut is always good for equities,” said Nestor Aguila, president of Market Capital Securities Inc. Overseas investors are buying stocks, including PLDT and Globe Telecom Inc., he said. The Philippine Stock Exchange Index climbed 73.23, or 2.2 percent, to close at 3,362.98. That was its biggest gain since August 30. In the broader market, 96 stocks advanced and 23 fell. PLDT advanced P50, or 1.9 percent, to P2,760; Ayala Land rose 50 centavos, or 3.5 percent, to P14.75; while Globe Telecom Inc. climbed P20, or 1.5 percent, to P1,360. Lower borrowing costs may spur spending in the US, the country’s biggest export market and No. 1 source of remittances from overseas workers. Meanwhile, the peso—along with the Indonesian rupiah—led regional currencies higher today. A Fed cut “may cause more firmness in the peso,” central bank Deputy Governor Diwa Guinigundo said. The peso gained 1.3 percent to 45.565 per dollar, the strongest since August 13, according to Tullett Prebon Plc, the world’s second-largest interdealer broker. “The dollar will weaken against most major currencies and the peso will continue to appreciate by the end of the year,” said Paul Garcia, chief investment officer at ING Asset Management.                                      Investors should buy the peso as it will rise to P44.70 against the dollar, Richard Yetsenga, a currency strategist at HSBC Holdings Plc in Hong Kong, wrote in a research note to clients yesterday. (Bloomberg)

 

http://www.businessmirror.com.ph/09202007/headlines02.html