 C&C VIEWS By Ed F. Limtingco Updated March 11, 2009 12:00 AM |
According to the Institute for Development and Econometric Analysis, Inc. (IDEA) latest NewsBriefs, “the Bureau of Internal Revenue (BIR) has hit its January collection goal of Php 51.51 billion, with revenues of Php 51.6 billion for the month. On the other hand, the Bureau of Customs (BoC) was Php 2.8 billion short of its target collection for January. BoC collected only about Php 14.7 billion because of lower oil prices and declining trade volume. The government has adjusted collection goals for 2009, accounting for factors reported by the two bureaus.”
Likewise, it was reported that “according to the National Statistics Office (NSO), the inflation in February 2009 was 7.3%. Such exhibited an increase of 0.2% from January 2009’s rate. However, the said level was within the BSP’s forecast range of 6.6% - 7.5% and did not deter the central bank to announce further rate cuts this week. The rise in inflation in February was due to the volatile prices of basic commodities such as food and fuel. Fortunately, the BSP is optimistic in reaching lower inflation for the full year. On the other hand, some economists are also looking forward to a safe easing of prices.”
Moreover, although the Bangko Sentral ng Pilipinas (BSP) foresees the slowdown of lending in 2009, however, bank lending growth is still expected to go on positive double digits. Lending slowdown might be caused by the stricter lending standards of banks. Moreover, the Capital Adequacy Ratio (CAR) of banks, a measure of financial strength, might decrease this year because of the global crisis. Fortunately, the BSP is confident that banks would be able to comply with BSP’s required CAR of 10%, and above the 8% CAR that the Bank of International Settlements had set.
Meanwhile, the Export Development Council (EDC) will be finalizing its one-billion-peso assistance package for small and medium exporters hit by the global economic slowdown. Currently the EDC are devising rules for implementation and disbursement. The said package was planned amidst the sudden drop in exports for December 2008, falling by 40.4% from figures in the previous year. In the same manner, the Department of Tourism has expressed optimism in the tourism industry. It noted that contributed revenues in the year could reach to US$10 billion, with the planned opening of 2,089 new hotel rooms nationwide. The measure would inject US$ 5 billion in investments. It is also expected to lead to the creation of 3,000 jobs. Lastly, tourism spending is expected to reach US$ 4 to 5 billion from 2008 figures of US$ 4.8 billion, according to IDEA.
However, it was also reported by IDEA that “the government rejected all bids at an auction of 10-year zero coupon Treasury bonds as banks were requesting for yields as high as 9.5% on the debt papers. The auction fell short of the expected finance borrowing of Php 10 billion.”
For credit & collection (C&C) questions, comments and rejoinders you want to share or inquire, you can reach him at 0917-7220521
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