Senators caution vs rushing DBP-LBP union B B F
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HE Marcos administration was reminded to “proceed cautiously and prudently” in contemplating the merger of the Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP), seen to create, if implemented, the largest bank in the Philippines. Deputy Minority Leader Risa Hontiveros, citing a painful lesson from the 2008 Global Financial Crisis, argued that large banks are riskier, and tend to introduce more systemic risk into the financial system. For his part, Minority Leader Koko Pimentel cautioned against
rushing the merger. “Don’t rush as a lot of employees will be affected,” he said in an SMS to BM when sought for reaction to an announcement by Finance Secretary Benjamin Diokno, that no less than President Ferdinand R. Marcos Jr. himself is now pushing for the two banks’ merger, in order to create what is envisioned to be a big, stable bank that can carry out multiple mandates. Hontiveros noted that the LandBank and DBP carry out separate, and distinct, mandates: the DBP serves industry by financing infrastructure, logistics, and commerce. The LandBank, on the other hand, has been the primary institution mandated by the State to finance
the acquisition of land estates, and assist small farmers, fisherfolk, and ARBs, among others. “We have to understand exactly where the redundancies are and what efficiencies can be gained from this merger, and balance these against any risks that the merger may pose to the economy and financial system,” Hontiveros said in a statement Wednesday. She recalled that in 2016, this was why then-Budget Secretary Diokno, together with Finance Secretary Carlos Dominguez, opposed the merger when it was proposed at that time. “What has changed since then?” she asked. In 2016, even then-senator Marcos Jr. had opposed the merger, as Diokno himself recalled on
Tuesday. At that time, Marcos Jr. was concerned about the possibly huge labor displacement among the two banks’ work forces. However, Diokno explained, nowPresident Marcos has changed his mind, after tracking international developments, including the spectacular collapse of three big banks in the west. Hontiveros pointed out that the Governance Commission for Government-owned and -controlled corporations itself, the regulatory body established for the purpose of monitoring and exercising oversight over GOCCs such as the LandBank and DBP, has previously expressed doubts that the contem-
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Thursday, March 30, 2023 Vol. 18 No. 166
P. | | 7 DAYS A WEEK
SURGE 54% TO P12.5B B A E. S J
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HE Philippine Economic Zone Authority (Peza) said it has recorded P12.537 billion worth of investments for the first quarter of 2023, a 53.99-percent increase from the P8.141 billion in approved investments recorded from the same period in 2022.
“The Peza Board has approved a total of 42 new and expansion projects of ecozone locators and developer/operators for the first quarter of the year, which are expected to bring more than P12 billion of investments,” Peza Director General Tereso O. Panga said in a statement on Wednesday. “This surge in investments that gained more than 50 percent in increase as compared to January to C A
ECOTOURISM A Zamboangueña weaver demonstrates her weaving skills to Tourism Secretary Christina Garcia Frasco; Dr. Mina Gabor, International School of Sustainable Tourism president; and Silang Mayor Alston Kevin Anarna at the opening of the International Ecotourism Travel Mart and Festival in Silang, Cavite, on Wednesday, March 29, 2023. Also gracing the activity is Transportation Secretary Jaime Bautista and Masaru Takayama, chairman of the Asian Ecotourism Network. NONIE REYES
‘INFRA VITAL TO SOLVING ‘Key Cabinet members back KEY ECONOMIC ISSUES’ recasting of econ provisions’
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RADE Secretary Alfredo E. Pascual underscored the role that infrastructure development plays in addressing transport and logistics constraints, energy supply shortages and connectivity issues, which he said “stifle” economic activities. “The development of robust infrastructure is the key to unlocking business opportunities and stimulating and sustaining economic growth,” Pascual said in his speech at the Urban Land Institute Philippines Conference on Wednesday. By investing in high-quality infrastructure, the Trade chief said the country will not only
enhance its overall business environment “but also pave the way for increased investment.” According to Pascual, as the Philippines moves toward “robust” economic expansion, it is now transitioning from a consumer-driven to an investmentled economy. Connectivity, both physical and digital, is “integral” in pursuit of accelerating growth of investments and businesses and enhancing ease of doing business, he stressed. “Our national development plan highlights digital and physical connectivity as cruS “I,” A
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ABINET members have expressed support for the initiative of the House of Representatives to rewrite the Constitution’s “restrictive” economic provisions, a lawmaker claimed on Wednesday. “We are encouraged by the statements/position papers of members of the President’s economic team and of the Cabinet who share our desire and goal for the country to attract more foreign investments through economic reform in the Constitution,” Rep. Rufus Rodriguez of the second district of Cagayan de Oro City said. The latest member of the
President’s economic team to support the House constitutional amendment push is Finance Secretary Benjamin Diokno, he said. “We are heartened by Secretary Diokno’s supportive statement. He is an influential voice in the administration and in the business community,” Rodriguez added. Moreover, the lawmaker cited the position papers presented to his committee by Trade Secretary Alfredo Pascual, National Economic and Development Authority Director General Arsenio Balisacan, Interior Secretary Benhur Abalos, Social C A
PESO EXCHANGE RATES US 54.3760 ■ JAPAN 0.4156 ■ UK 67.0945 ■ HK 6.9272 ■ SINGAPORE 40.9674 ■ AUSTRALIA 36.4591 ■ SAUDI ARABIA 14.4802 ■ EU 58.9653 ■ KOREA 0.0419 ■ CHINA 7.9087 Source: BSP (March 29, 2023)