6-storm series bolsters PHL bid for L&D fund By Jovee Marie N. Dela Cruz @joveemarie
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SENIOR lawmaker on Sunday strongly backed the Philippine government’s proposal to use the unprecedented series of six cyclones that battered the Philippines within a month as a “test case” to access financing from the Fund for Responding to Loss and Damage (FrLD). Camarines Sur Rep. LRay Villafuerte, whose province of Camarines Sur bore the brunt of Severe Tropical Storm Kristine, said this fund, created under the United Nations Framework Convention on Climate Change (UNFCCC), aims to help vulnerable countries cope with the devastating
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impacts of climate change. “President Marcos is spot on in wanting to use the unprecedented devastation wrought by six cyclones this October-November period alone as ‘baseline’ for what climate-vulnerable nations have been enduring—and will be enduring in the future—plus the immense resources they need to access right away for their recovery from the disasters and preparations for future calamities,” he added. The lawmaker’s stance aligns with the Philippine government’s advocacy at international climate forums, particularly in the ongoing COP29 in Baku, Azerbaijan, where the Philippines has been vocal about the need for wealthier, high-
emission nations to fulfill their commitments to climate finance. Villafuerte emphasized that the Philippines, which contributes only 0.3 percent of global greenhouse gas emissions, disproportionately suffers from extreme weather events caused by global warming. In the past COP summits in Egypt and the UAE, as well as in the ongoing one in Azerbaijan, Villafuerte has consistently pushed for much higher reparation from affluent country-polluters for highly vulnerable economies like the Philippines that have been suffering the most from the world’s rising temperatures and sea levels even though they are the least polluters. In the wake of Kristine, Villa-
fuerte proposed a P20-billion Bicol Rehabilitation and Recovery Fund (BRRF) in the 2025 national budget to support the region’s recovery. He also called for the revival of the Bicol River Basin Development Program (BRBDP), which President Marcos instructed the Department of Public Works and Highways (DPWH) to revisit following his visits to typhoon-hit communities in CamSur. The BRRF, if approved, will serve as a multiyear initiative to restore Bicol’s infrastructure, including roads, schools, and water systems, and boost disaster preparedness.
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Monday, November 18, 2024 Vol. 20 No. 40
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8-MO EXTERNAL DEBT TO GDP RATIO UP TO 28.9% T By Cai U. Ordinario @caiordinario
HE country’s external debt ratios remained healthy, but more needs to be done to encourage businesses to invest in the Philippines, according to an economist.
Based on the latest data from the Bangko Sentral ng Pilipinas (BSP), the country’s external debt to GDP ratio was at 28.9 percent in the January to August 2024 period. This inched up from the 28.5 percent posted in the same period last year. It was the country’s highest external debt ratio since 2012 when it was at 30.5 percent. “A cause for concern is when the external debt ratio reaches 50 percent. Given that the external debt ratio is at 28.5 percent, this means our debt can be amply covered by our GDP,” Alvin P. Ang, an economist working for a regional think tank, explained to BusinessMirror over the weekend. Ang explained that the external debt ratios are useful tools for investors. External debt ratios help them decided on whether to invest in a country or not. However, Ang said healthy external debt ratios are just one of the major considerations of investors. Other key considerations include ease of doing business policies; energy prices; and labor costs. “[External debt ratios] are really for investors. They want to find out if we can pay our debts abroad. This can also help boost investor confidence in the Philippines,” Ang said. BSP data also showed the breakdown of External debt to GDP ratio in the public and private sectors. The public ratio is 17.7 percent while the private is at 11.2 percent. The public external debt to GDP ratio is the lowest since 2022 when it was at 16.7 percent while the private external debt to GDP ratio was the highest since 2018 when the full-year rate was at 11.3 percent. Meanwhile, external debt to Gross National Income (GNI) also improved to 25.7 percent in the January to August period in 2024 from the 26.4 percent in the same period last year. The external debt to GNI ratio was the lowest since 2020 when the full-year rate was at 25.3 percent. GNI, meanwhile, combines GDP and Net Primary Income.
PICKING UP THE PIECES AFTER PEPITO (Clockwise from top left) Residents of Viga, Catanduanes, northeastern Philippines, work to repair their homes after Super Typhoon Pepito (international name: Man-yi) caused widespread destruction on Sunday, November 17, 2024. The Civil Aviation Authority of the Philippines (CAAP) announced on Saturday that Bicol International Airport, Virac Airport, and Naga Airport had implemented advanced precautionary measures in preparation for Super Typhoon Pepito’s approach. With Wind Signal No. 5 raised in Catanduanes, Pepito is expected to bring “potentially catastrophic and life-threatening” impacts to the northeastern Bicol region. PHOTOS COURTESY OF MDRRMO VIGA, CATANDUANES AND CAAP
RM AWARDEES SHOW: GLOBAL RESPONSIBILITY A NECESSITY By Bless Aubrey Ogerio
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AMON Magsaysay Awardees, winners of Asia’s premier prize, are not only celebrating their achievements but also urging people that addressing climate change, poverty and injustice is no longer optional. During the 66th Ramon Magsaysay Award ceremony at the Metropolitan Theater, Indian engineer Harish Hande, a 2011 awardee for his work in solar technology, enjoined everyone to fight “wars that truly matter.”
“What kind of world do we want to live in? A world of destructive wars, or a world where we fight the battles that matter?” he said in his keynote speech on Saturday. “The spirit in all of us should actually multiply in a manner that a kid who wakes up tomorrow—is born on a day that we don’t need to talk about equity, gender, sustainability because that’s what the world is all about,” he added. Indonesian environmental activist Farwiza Farhan, See “RM,” A2
Pag-IBIG: Lowering rates on housing loans needs balance By Reine Juvierre S. Alberto
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HE Home Development Mutual Fund, commonly known as PagIBIG Fund, is keen on lowering interest rates on its housing loans but such a move would need to balance the interests of non-borrowers to ensure fairness and fund sustainability. At the sidelines of Pag-IBIG’s Online Public Auction facility launch, Chief Executive Officer Marilene C. Acosta said the shelter agency offers the lowest interest rates on housing loans in the market. “While it may be possible that we can lower our interest rates, kailangan balansehin din namin yung interest ng non-borrowers [we also need to balance the interest of
non-borrowers],” Acosta said. The agency’s chief said that if they reduce interest rates to as low as 3 percent, it would disrupt the market since this would encourage all borrowers to take out a loan from Pag-IBIG. “What we want is more players in the market. Even banks are now participating in retail housing loans,” Acosta stressed. Pag-IBIG’s housing loan interest rates were reduced to 6.25 percent per annum under a threeyear repricing period from the previous 6.375 percent. For the five-, 10-, 15-, 20-, 25- and 30-year repricing periods, rates have also been reduced to 6.5 percent from See “Housing,” A2
PESO EXCHANGE RATES n US 58.8140 n JAPAN 0.3764 n UK 74.4997 n HK 7.5585 n CHINA 8.1371 n SINGAPORE 43.7019 n AUSTRALIA 37.9468 n EU 61.9370 n KOREA 0.0419 n SAUDI ARABIA 15.6691 Source: BSP (November 15, 2024)