‘With new charter, LBP, DBP can reduce reliance on NG’
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TATE-OWNED banks Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) could rely less on government support if their charters were amended, according to the Department of Finance (DOF). In a statement, Finance Secretary Ralph G. Recto said amending the charters of LBP and DBP would strengthen them and allow them to access private capital, reducing their reliance on government funds. These amendments, DOF said, will allow the banks to access private capital by offering a portion of their shares to the public. Both government banks have also
proposed to increase their authorized capital stock offering to the public. “The proposed amendments to LandBank’s charter include a provision to streamline the bond issuance process, similar to that of DBP,” DOF said. “This change would allow the banks to access capital more efficiently, reducing their reliance on national government support or dividend relief,” it added. DOF said both state banks consistently met and exceeded the minimum requirements of the Bangko Sentral ng Pilipinas (BSP) for Capital Adequacy Ratio (CAR), which is a critical benchmark of financial health.
As of the end of November 2024, LBP’s CAR remains at a healthy level of 16.42 percent while DBP’s level is at 14.78 percent. DOF said these are both well above the 10 percent regulatory threshold, demonstrating the state banks’ resilience against financial and operational risks. “The solid financial footing of LandBank and DBP reaffirms their indispensable role in advancing the nation’s progress. This allows them to continuously adhere to prudent financial management practices and effectively utilize their resources to deliver more support to Filipinos, especially in key sectors like infra-
structure; agriculture; fisheries; micro, small, and medium enterprises, and many more," Recto said. Earlier, DOF said it is pushing for the passage into law of the Capital Market Efficiency Promotion Bill and the Capital Market Development Bill in its bid to boost the country’s capital market. The Capital Market Efficiency Promotion Bill, which seeks to democratize access to capital investments, was approved on second reading by the House of Representatives. (See: https://businessmirror. com.ph/2023/12/13/capital-marketsefficiency-bill-sent-to-house-plenary/).
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Friday, January 3, 2025 Vol. 20 No. 83
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DEC OUTPUT; PMI AT 54.3 By Cai U. Ordinario
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@caiordinario
OCAL manufacturing firms ended 2024 on a “strong note” as the slowdown in commodity prices helped boost their output in December, according to S&P Global Market Intelligence. RIVER OF DETERMINATION High-school students in Tanay, Rizal, brave the Daraitan River on improvised bancas joined by planks, allowing more passengers to cross safely on the first day of classes in 2025. Daraitan Integrated School, the only accessible school for over 600 elementary and high-school students from nearby sitios, sees daily challenges as rising waters during bad weather disrupt learning. With education at risk, the Department of Education is working to address funding shortages following a P12-billion budget cut, part of the 2024 General Appropriations Act signed by President Ferdinand Marcos Jr. NONOY LACZA
Based on the latest S&P Global Philippines Manufacturing Purchasing Manager's Index (PMI), the country posted a composite score of 54.3 in December 2024, higher than the 53.8 score in November 2024. Apart from higher demand, as indicated by new orders and higher output, S&P Global Market Intelligence economist Maryam Baluch also noted the improvement in input prices, which slowed to a rate lower than the historical average. See “PHL,” A2
NAIA SHATTERS RECORD FOR PASSENGER TRAFFIC, FLIGHTS By Lorenz S. Marasigan
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@lorenzmarasigan
HE Ninoy Aquino Inter nat iona l A ir por t (Naia) shattered its previous records for passenger traffic and flights in 2024, handling 50.1 million passengers last year, a 5.08-percent increase from its prepandemic peak in 2019 and a 10.43-percent jump from 2023. Similarly, the airport recorded 293,488 f lights in 2024, marking an 8.08-per-
cent growth compared to 2019 and a 4.83-percent rise from the previous year. “More Filipinos are flying, and more visitors are coming to the Philippines,” said Ramon S. Ang, President of New Naia Infra Corp. (NNIC). “This growth is a clear sign that confidence in air travel has returned, and it motivates us to work even harder. Our goal is to ensure that Naia provides a better experience for See “NAIA,” A2
Legacy projects top agenda of 1st PBBM-Cabinet meet By Samuel P. Medenilla
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@sam_medenilla
RESIDENT Ferdinand Marcos Jr. will tackle updates on his legacy projects, including big-ticket projects, in his first full Cabinet meeting for 2025 next week, according to the Presidential Communications Office (PCO). The upcoming meeting was among the issues discussed by the chief executive during his talk with Executive Secretary Lucas P. Bersamin on Thursday. “The President will be comparing some notes with the Executive Secretary today. This includes
the agenda in the first Cabinet meeting,” PCO Secretary Cesar B. Chavez told Palace reporters in a brief statement when asked about Marcos’s activities after the New Year revelry. “The first [full] Cabinet meeting is on January 7,” he added. He said Cabinet members will give updates on “legacy projects, inc lud ing big-t ic ket projects and ODA (Official Development Assistance)-funded projects” of the Marcos administration. In a press conference on Monday, Bersamin said President Marcos reviewed the version of See “Legacy,” A2
PESO exchange rates n US 57.8470 n japan 0.3688 n UK 72.4129 n HK 7.4466 n CHINA 7.9249 n singapore 42.4067 n australia 35.8073 n EU 59.9179 n KOREA 0.0392 n SAUDI arabia 15.3971 Source: BSP ( January 2, 2025 )