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GIR FALLS TO $101.3B AS OF END-MAY—BSP www.businessmirror.com.ph
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Thursday, June 8, 2023 Vol. 18 No. 234
P. | | 7 DAYS A WEEK
Privatization of Naia seen to start by Q1 of 2024
B J E Y. A @jearcalas
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HE country’s Gross International Reserves (GIR) as of end-May fell by $500 million to $101.3 billion from $101.8 billion, according to the Bangko Sentral ng Pilipinas (BSP).
“The month-on-month decrease in the GIR level reflected mainly the National Government’s [NG] net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures, and downward adjustments in the value of the BSP’s gold holdings due to the decrease in the price of gold in the international market,” the BSP said in a statement on Wednesday. Likewise, the country’s latest GIR record was 2.22 percent lower than the $103.6 billion level registered in end-May last year, BSP data showed. The BSP’s reserve assets consist S “BSP,” A
B L S. M @lorenzmarasigan
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‘A DAY AFTER TOMORROW’?
A cloudy sky hovers above Ortigas’s bustling business district, captured from a distance in Antipolo City. This remarkably somber view seems to be a reminder of the presence of Typhoon Chedeng. Although there is a possibility of Chedeng further intensifying into a tropical storm on Wednesday, weather bureau Pagasa has indicated that it is unlikely to cause significant rainfall in any region of the country, as it is projected to stay far away from the Philippine landmass. NONIE REYES
HE Department of Transportation (DOTr) said on Wednesday it is looking at implementing the P141-billion privatization project for the Ninoy Aquino International Airport (Naia) in the first quarter of 2024. Transportation Undersecretary for Aviation and Airports Roberto Lim said the private concessionaire will have to shell out P141 billion for the deal, which includes upfront payment of P30 billion, annuity payments of P2 billion, and share from the total revenues to the government. He noted that the target of implementing the project in the first quarter of 2024 is “very tough,” it is still doable. “That is a very tough and tight schedule. We can say that it is doable in the first quarter of next year. It is doable that there will be a conclusion that could possibly be proclaimed by the government,” he said in a statement. Last Friday, the DOTr and Manila International Airport AuthoriS “N,” A
WB RAISES GROWTH OUTLOOK Pascual details gains FOR PHL, BUT WARNS OF RISKS of PHL from UK DCTS B A E. S J
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HILE the World Bank revised upwards its growth outlook for the Philippines for 2023 from 5.4 percent to 6 percent on the back of strong domestic demand, among others, it warned the country of certain risks to the economic outlook such as the threat of El Niño which it said could further constrain food production. The report “Global Economic Prospects: June 2023,” released by the WB on Wednesday, said, “Following a sharp slowdown in 2022, growth in the East Asia and Pacific (EAP) region is recovering, supported by strong activity
in China following the reopening of its economy and a rapid decline in Covid-19 infections.” In fact, WB said, compared with January projections, growth in EAP is expected to be 1.2 percentage points higher in 2023 and 0.3 percentage points lower in 2024. For the Philippines, WB revised upward its growth outlook by 0.6 percentage points from the 5.4 percent in January 2023 to 6 percent, as shown in the Global Economic Prospects report. Meanwhile, the multilateral financial institution expects the Philippine economy to post C A
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RADE Secretary Alfredo E. Pascual welcomed the launch of the United Kingdom Developing Countries Trading Scheme (DCTS), saying it will enable more Philippine exporters to compete in the UK market “successfully.” Describing the trading scheme as “one of the most generous trade preference schemes in the world,” Pascual said the Philippines will have continued access to enhanced preferences. “We look forward to our country having access to duty-free, quota-free trade on 92 percent of our eligible goods—or 99 percent of our exports to the UK. These concessions will enable more Philippine exporters to compete in the UK market successfully,” Pascual said in his speech at the launch of UK DCTS on Wednesday. The DCTS lowers or removes tariffs on more
than 150 products. Its coverage extends to the country’s agricultural products such as tomatoes, milk and cream, cheese, grains, tropical fruits, and animal and vegetable oils, Pascual noted. Moreover, he said electronic products and optical instruments—“all of which we can supply well”—are in great demand in the UK and, under the DCTS, will enjoy preferential tariffs. Pascual said Philippine products that will benefit from this trade scheme are tuna, shirts, and t-shirts. For instance, he noted, “our annual export of tuna worth 40 million Pounds so far will enjoy a 20-percentage-point reduction in import duty.” But, beyond reducing tariffs, the Trade chief said the scheme’s “important” benefits for the Philippines rest on its provision for “simpler” C A
PESO EXCHANGE RATES US 56.2040 ■ JAPAN 0.4025 ■ UK 69.8110 ■ HK 7.1665 ■ SINGAPORE 41.6944 ■ AUSTRALIA 37.4824 ■ SAUDI ARABIA 14.9878 ■ EU 60.1214 ■ KOREA 0.0433 ■ CHINA 7.8960 Source: BSP (June 7, 2023)