NG borrowings decline 12.4% to ₧830.4B as of Q1–BTr By Reine Juvierre S. Alberto
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ROSS borrowings by the national government fell to P830.389 billion as of the first quarter of the year, down by 12.41 percent from a year ago, due to the state’s reduced reliance on foreign lenders. Latest data from the Bureau of the Treasury (BTr) showed the state’s gross borrowings dipped by P117.701 billion from P948.090 billion posted from January to March last year. Of the P830.389 -bil lion gross borrowings for the quarter, the bulk or 85.87 percent
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CEBU’S ICONIC CONVENTION CENTER NEAR THE BEACH IS RISING
went to domestic borrowings, reac hing P713.132 bi l l ion. The remaining 14.12 percent went to external borrowings at P117.257 billion. Domestic gross borrowings for the first three months of the year rose to P713.132 billion, higher by 9.21 percent from P652.986 billion in the same period in 2023. External or foreign gross borrowings, meanwhile, declined to P117.257 billion, down by 60.26 percent from P295.104 billion recorded in January to March last year.
President Ferdinand R. Marcos Jr. (4th from left) leads the capsule-laying for Cebu’s first-ever standalone convention facility, the P1.5-billion Mactan Expo Center, together with Alliance Global Group Inc. (AGI) Chief Executive Officer Kevin L. Tan (4th from right). The state-of-the-art facility will be Cebu’s first and only standalone convention center and will offer almost 10,000 square meters of MICE space. Also in photo are (from left) Lourdes T. Gutierrez-Alfonso, chief operating officer, Megaworld; Cong. Cindi Chan of the lone district of Lapu-Lapu City; House Speaker Martin G. Romualdez; Sec. Antonio Lagdameo Jr., special assistant to the President; Cebu Gov. Gwendolyn Garcia; and Lapu-Lapu City Mayor Junard Chan. MEGAWORLD CORP.
See “NG,” A2
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BSP: MIDEAST TENSIONS TO BLAME IN PESO SLIDE n
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By Cai U. Ordinario
@caiordinario
HE Bangko Sentral ng Pilipinas (BSP) blamed the recent depreciation of the Philippine peso on escalating tensions in the Middle East, even as he gave assurances they can manage “any unnecessary movement and excessive volatility.”
In a statement, BSP Governor Eli M. Remolona Jr. said the escalation of the conflict has prompted “safehaven” inflows to the US dollar. Based on BSP data, as of April 26, the Philippine peso closed at P57.869 to the greenback. On a year-to-date basis, according to the Rizal Commercial Banking Corp. (RCBC), the foreign exchange rate was at P57.71 to the US dollar, marking a 4.2-percent depreciation since the beginning of the year. “The story has been one of dollar strength rather than peso weakness. Escalating tensions in the Middle East led to safe-haven flows into the US dollar at the expense of most other currencies,” Remolona said. “Nonetheless, the BSP continues
to monitor the market and stands ready to manage any unnecessary movement and excessive volatility,” he added. RCBC Chief Economist Michael L. Ricafort said the peso has been taking a beating in the past two years or since the Russia-Ukraine war erupted in February 2022. Ricafort’s data showed the peso averaged P55.755 to the dollar in 2022. This marked a P4.76 or 9.3percent depreciation on the year Ukraine was invaded by Russia. However, the Philippines is not alone in this predicament. Other Asian currencies have also been affected by the escalating tensions in the Middle East. See “BSP,” A2
AYALA GROUP AIMS TO HASTEN E-VEHICLE TRANSITION OF PHL By VG Cabuag @villygc
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ONGLOMERATE Ayala Corp. said it is committed to increase its investments in the electric vehicle (EV) sector in its bid to build the country’s first EV ecosystem and encourage the public to use transportation options that will not require fuel. Jaime Alfonso Zobel de Ayala, CEO of the Ayala Group’s automotive arm, said the conglomerate expects EV to comprise 20 percent of new car sales by 2030. The company is keen on cornering a significant share of this market. “In the short term, our focus is to set up the local EV ecosystem by bringing in a compelling line-up of four-wheel EVs as well as by widening the charging infrastructure, store footprint, and our internal capabilities,” Zobel said. He said the group is engaging
potential institutional partners for the rollout of charging stations. The company said it is investing some $50 million, or about P2.75 billion, to develop 100 charging stations in some 50 locations in the country by the end of the year. “We believe that more players and more investments are necessary for the public to become comfortable with the availability of charging, and to reach the government’s goal of over 7,000 charging stations by 2030,” Zobel said. “We recognize that the shift towards clean technology will take time to materialize. Thus, our focus today is to enable that transition.” ACMobility, together with Ayala Land Inc. and Integrated Micro-electronics Inc., launched a network of 33 EV charging stations in 16 locations across the country last year. See “Ayala,” A2
PARCHED PARADISE Dried twigs and land, once a thriving mangrove area in Las Piñas, now parched due to the prolonged heat wave. As the heat index rises, concerns grow about the lasting effects of this weather phenomenon. Reportedly, the El Niño phenomenon may last longer than expected, potentially affecting 56 provinces by April, as forecasted by weather bureau Pagasa. NONIE REYES
‘Reforms, not Cha-cha, made latest investments possible’
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HE Philippines’ recent victories in securing more foreign investments were not due to Charter Change but the correction and refinement of rules that paved the way for “opening the doors” to investment inflows for certain sectors. This was according to a rejoinder (See: https://econ.upd.edu. ph/dp/index.php/dp/article/ view/1553/1038) w r itten by professors from the University of the Philippines School of Economics (UPSE), who asserted that the points raised by the Foundation for Economic Freedom (FEF) against their earlier paper actually bolster anti-Charter Change arguments. In a rejoinder, the UPSE economists said this was particularly observed in the position taken by FEF regarding renewable energy and the “entry of Starlink into the Philippine market.” “It is our view that the key to
gaining investor confidence is rather mundane: palpable improvements in sector coordination, fair regulation, and lower perceived corruption, as well as amendments to long-standing administrative rules and ordinary statutes that impede market entry and distort the playing field,” the UPSE economists said. “The goal after all is not a governance utopia, and historical experience has already demonstrated how the required improvements in corruption perception are well within reach,” they added. The UPSE economists said allowing the entry of foreign firms in renewables was done by “correcting and refining” a 2009 promulgation of the Department of Energy (DOE) while Starlink’s investment highlights the success of initiative to amend the decades-old Public Service Act (PSA). See “Reforms,” A2
EXPLAINER »B4 THE TIKTOK LAW KICKS OFF A NEW SHOWDOWN BETWEEN BEIJING AND WASHINGTON. WHAT’S COMING NEXT?
PESO EXCHANGE RATES n US 57.8690 n JAPAN 0.3720 n UK 72.4346 n HK 7.3925 n CHINA 7.9934 n SINGAPORE 42.5758 n AUSTRALIA 37.7248 n EU 62.0992 n KOREA 0.0422 n SAUDI ARABIA 15.4297 Source: BSP (April 26, 2024)