VICTORY AND HEARTBREAK IN PARIS Nesthy Petecio defeated a
taller Jaismine Lamboria of India, 5-0, to jumpstart her gold medal bid and help the Philippine boxing team to a 2-0 start at the Paris Olympics on Tuesday, July 30, 2024. Petecio’s quickness and skill were on full display as she outmaneuvered her opponent to the cheers of Filipino fans at the Paris North Arena. In contrast, Eumir Felix Marcial’s gold medal hopes were dashed by a younger, taller Uzbek rival, leaving the Zamboanga City boxer at a crossroads in his career. “I’m not sure right now if I will focus on my pro career or should I start all over again to achieve my Olympic dream,” Marcial tearfully said. Story in Sports B8. NONIE REYES VIA CANON R6/ AP/JOHN LOCHER
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BSP: INFLATION LIKELY BEYOND JULY TARGET www.businessmirror.com.ph
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Thursday, August 1, 2024 Vol. 19 No. 289
Lower borrowing costs favor bond issuance program T
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@reine_alberto
NFLATION may have likely breached the government’s inflation target in July 2024, according to the Bangko Sentral ng Pilipinas (BSP).
In its latest month-ahead inflation forecast, the BSP said inflation may settle from a low of 4 percent to as high as 4.8 percent in July 2024. This projection is higher than the revised 3 to 4 percent inflation target for 2024 set by the Cabinetlevel Development Budget Coordination Committee (DBCC). Inflation slowed to 3.7 percent in June 2024 due to lower energy prices, according to the Philippine Statistics Authority (PSA). “Higher electricity rates along with the increased prices for agricultural commodities like vegetables, meat, and fruits along with higher domestic oil prices are the primary sources of upward price pressures for the month,” the BSP said in its forecast. However, the BSP said its expectations of lower rice and fruit prices and peso appreciation could pull down high commodity prices. “Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its datadependent approach to monetary policy formulation,” the BSP said.
BMI projections
MEANWHILE, inflation is projected to average 3.2 percent year-onyear (y-o-y) and 2.0 percent y-o-y over 2024 and 2025, respectively, according to BMI, a unit of Fitch Solutions Company. The think tank also sees consumer spending accelerating in
P. | | 7 DAYS A WEEK
FLOOD OF FUNDS, TRICKLE OF RESULTS A week after Typhoon Carina ravaged Quezon City, mountains of garbage still line E. Rodriguez
Avenue, highlighting the city’s ongoing struggles. Today, the Senate Public Works Committee, chaired by Senator Bong Revilla, opens hearings on the utilization of billions in flood control funds amid widespread dismay over the recent massive flooding. Invited are the chiefs of DPWH and MMDA, agencies holding a significant share of the flood control budget, estimated by critics at roughly P1 billion a day. Senators, led by Joel Villanueva, vow to scrutinize future flood control budgets as Congress reviews the 2025 National Expenditure Program. Stories on flood aftermath and debates on A5 News. NONOY LACZA
HE Philippine government will begin the issuance of samurai, dollar and euro bonds in the second half of 2024 to take advantage of the lower borrowing costs, according to Finance Secretary Ralph G. Recto. Recto told reporters that the Bureau of the Treasury (BTr) will start the issuance for the $5-billion external borrowing program for this year. “Based on our advisors, I think it is the optimum time to get lower rates. The idea is to do it so we could get the cheapest borrowing cost,” Recto said at the sidelines of the 74th anniversary of the Philippine Life Insurance Association (PLIA) on Tuesday night. The Finance chief said about $500 million may be borrowed through the issuance of Japaneseyen-denominated Samurai bonds while the remaining amount for
the dollar- and euro-denominated bonds has not been disclosed yet. National Treasurer Sharon P. Almanza told the BM the national government is exploring the Republic of the Philippines’s external transaction to finance its external financing requirement this year. “We are continuously monitoring the different markets for the most opportune issuance windows as well as the most suitable structure to optimize pricing and investor reach,” Almanza said. The government raised $2 billion through the issuance of a dualtranche Fixed Rate US dollar bond in May 2024, the first time that the Philippines transacted in the international capital markets for this year. The remaining $3 billion S “B,” A
DTI CHIEF PASCUAL QUITS CABINET AFTER 2 YRS B A E. S J @andreasanjuan
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RADE and Industry Secretary Alfredo E. Pascual has resigned after serving for two years as chief of the Department of Trade and Industry (DTI). In a statement sent to reporters through Viber, the outgoing Trade chief said, “After much reflection, I have decided it is time for me to return to the private sector.” Pascual said his roles in the private sector will enable him “to continue contributing my expertise and experience while being able to spend quality time with my family.” Pascual expressed gratitude to President Ferdinand R. Marcos Jr., saying, “Serving in the Marcos Jr. Cabinet has been an extraordinary
PASCUAL: “Being head of DTI has been one of the most challenging yet fulfilling experiences of my career.” privilege and honor. I take pride in our collective achievements at the Department of Trade and Industry.” “I thank the President for the op-
portunity to serve our beloved country under his leadership and contribute to the building of a Bagong Pilipinas,” the outgoing DTI secretary said. Pascual said, “With a full heart and unwavering commitment to our nation’s economic growth and development, I accepted the invitation to serve as Secretary of Trade and Industry under the Marcos Jr. administration.” He emphasized that his role as the head of DTI “has been one of the most challenging yet fulfi lling experiences of my career.” Meanwhile, Ana Carolina P. Sanchez, Chief of Staff of the Office of the Secretary under DTI, told reporters in a Viber message that there is still no replacement for the recently vacated post. “None yet, thank you,” Sanchez said.
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PESO EXCHANGE RATES US 58.6450 ■ JAPAN 0.3840 ■ UK 75.2767 ■ HK 7.5071 ■ SINGAPORE 43.6801 ■ AUSTRALIA 38.3421 ■ SAUDI ARABIA 15.6324 ■ EU 63.4246 ■ KOREA 0.0424 ■ CHINA 8.0945 Source: BSP (July 31, 2024)