Exit from FATF grey list seen boosting PHL growth
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HE declaration of the Parisbased Financial Action Task Force (FATF) that the country is inching closer to its exit from the grey list as it has met its deficiencies bodes well for the Philippines’s economy. Last Friday, FATF President Elisa de Anda Madrazo said a site visit will be conducted to affirm the country’s progress and to decide on its exit from the grey list. The visit will take place between now and February 2025. (See: https://businessmirror.com. ph/2024/10/26/amlc-phl-movescloser-to-exiting-fatf-grey-list/). Jonathan Ravelas, senior adviser at professional services firm Reyes Tacandong & Co. told the BusinessMirror that a favorable assessment from FATF would im-
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prove the country’s economic and investment prospects. “It’s promising news that the country has addressed all its deficiencies. The upcoming site visit by the FATF team is a crucial step in confirming these improvements. If the assessment is positive, there’s a strong possibility that we will finally exit the grey list,” Ravelas said. The country’s international reputation will improve if it exits from the grey list, he said. This will, in turn, lead to increased foreign investment interest. He said foreign investors prefer to do businesses in “stable and compliant environments” which includes a country’s exclusion from the FATF grey list. Apart from businesses, Filipinos
would enjoy lower costs for their financial transactions. This will become possible because financial institutions may see lower compliance costs as they face less scrutiny from international counterparts. “Overall, these factors can contribute to stronger economic growth, as increased investment and lower transaction costs can stimulate various sectors of the economy,” Ravelas said. Earlier, University of Santo Tomas Research Center for Social Sciences and Education (RCSSED) Director Jeremaiah M. Opiniano told the BusinessMirror that there are host countries that have been on guard when it comes to their transactions with countries in the FATF watchlist.
Some include banks in the United Kingdom which have asked for more documentation for money being sent to the Philippines. He added that in Korea, there are reports indicating that Filipinos there applying for simple debit cards were asked to produce additional documentation to make cross-border payments. The FATF flagged the country for supposed inadequacies in the effectiveness of the targeted financial sanctions framework (TFS) for both terrorism financing and proliferation financing. Landing on the FATF grey list does not automatically result in sanctions kicking in but could cause
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Monday, October 28, 2024 Vol. 20 No. 18
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GOVT BORROWINGS JUMP FOURFOLD IN SEPTEMBER T By Cai U. Ordinario @caiordinario
HE national government’s (NG) borrowings quadrupled in September due to a surge in its external debts, according to the Bureau of Treasury (BTr).
Latest BTr data showed that national government borrowings jumped 310.77 percent to P347.425 billion in September 2024 from P84.578 billion in September 2023. Figures from the agency also indicated that government borrowings in January to September reached P1.875 trillion. This was 12.866 percent higher than the P1.66 trillion in the same period last year. Borrowings in the month of September alone consisted of P202.312 billion in external debts, while domestic debts accounted for P145.113 billion. BTr data showed net external borrowings surged 2,801.46 percent from the previous year’s level. The amount saw the removal of P19.671 billion worth of payments. Gross external borrowings during the month reached P221.983 billion. This is composed of P140.988 billion worth of global bonds; P72.65 billion in program loans; and P8.345 billion in project loans. Net domestic borrowings in September 2024, meanwhile, grew 57.62 percent from P92.067 billion in September 2023. This was despite the P148.883 billion worth of amortization payments. See “Govt,” A2
CHILLIN’ AFTER KRISTINE, BEFORE LEON STARTS GROWLIN’
Just hanging out with these monkeys, an oriole, and a kingfisher over the weekend in Batangas, one of the hardest-hit areas by Super Typhoon Kristine. They all seemed to be sunning and singing in that precious window between two severe storms—exiting Kristine and the impending threat of Leon, which is expected to intensify over the next 24 hours and may reach severe tropical storm status by early Monday morning. These resilient creatures remind us that nature can find peace amidst chaos. PHOTOS BY MILA MOLINA LUMACTAO
‘ARTIFICIAL INTELLIGENCE MUST BE ACCESSIBLE TO ALL PINOYS’ By Rizal Raoul S. Reyes
Contributor
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HE use of artificial intelligence (AI) must be democratized so it could promote inclusivity and parity for many Filipinos. In a panel discussion during a recent forum on AI, Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) Executive Director Enrico Paringit said AI must be promoted and encouraged to help Filipinos make the right
decisions. Paringit also pointed out that AI will become an important tool not only for businesses but also for researchers. “You need AI tools to do innovation. You need AI tools to, maybe, make business decisions. And in every step of the way [AI] must have the kind of accessibility that will achieve the kind of impact that we want,” he said during the forum held last Friday at See “Pinoys,” A2
Campi: Govt must support local auto manufacturers By Andrea E. San Juan @andreasanjuan
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HE government should provide continuous support to local car manufacturers to ensure their viability as competition in the global auto market is heating up, according to the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi). Campi President Rommel Gutierrez said auto makers have expressed the hope programs such as the Comprehensive Automotive Resurgence Strategy (CARS) will continue. “We want the CARS program to continue. Because, again, we still need the support of government for
local manufacturing especially since CBUs [completely built-up units] have flooded the local market and they are very competitive,” Gutierrez told reporters on the sidelines of the 9th Philippine International Motor Show (PIMS) last week. “For example, we have the [Toyota] Tamaraw. This is locally produced so we need to keep supporting it,” he added. Gutierrez also said local auto makers have informed the government that CARS is a good program. “So, if you need to extend or even come up with a new support program, we would prefer something See “Campi,” A2
PESO EXCHANGE RATES n US 57.7980 n JAPAN 0.3807 n UK 75.0102 n HK 7.4385 n CHINA 8.1174 n SINGAPORE 43.8461 n AUSTRALIA 38.3779 n EU 62.5895 n KOREA 0.0420 n SAUDI ARABIA 15.3890 Source: BSP (October 25, 2024)