The peso closed lower at R55.88 to the US dollar yesterday at the Philippine Dealing System of the Bankers Association of the Philippines from P55.795 the previous day. The weighted average rate depreciated to P55.817 from P55.745. Total volume amounted to $192.2 million.
House passes deposit cover bill
The House of Representatives today approved a measure that will increase the maximum deposit insurance coverage to R250,000 from the current P100,000, paving the way for the bill’s passage into law. The measure will also give the state-run Philippine Deposit Insurance Corp (PDIC) the authority to examine banks in coordination with the central bank.The Senate had already ratified the report early on and the approval by the House was the last step needed before President Gloria Arroyo signs the bill into law. "If it is not signed in 30 days, the bill lapses into law," Senator Sergio Osmena III, chairman of the Senate committee on banks and financial intermediaries, told AFX-Asia. The maximum deposit insurance coverage of 100,000 pesos has stayed the same since 1992. The provision restoring PDIC’s power to examine banks, however, had been opposed by several lawmakers. It had been repealed with the passage of the General Banking Law in 2000 which gave the central bank the sole authority to examine banks.
Lenders reject BayanTel plan
Benpres Holdings Corp. said yesterday creditors of unit Bayan Telecommunications Inc. (BayanTel) and the company itself have rejected the receiver-proposed rehabilitation plan for the debt-saddled telecom firm. "It appears from the comments submitted to the court by the debtor, the secured and unsecured creditors, that none of the parties accept the latest receiver’s plan for Bayantel," Benpres said in a disclosure to the stock exchange. It added that BayanTel is particularly concerned about the level of sustainable debt proposed in the plan, and the suggested role of the receiver over the duration of the rehabilitation. Benpres did not provide details of the proposed rehabilitation plan. "Since none of the parties accepted the receiver’s plan, the court will have to make the decision on what plan to approve for BayanTel after considering all the submitted comments," Benpres added. BayanTel, which is under receivership, is restructuring $477 million worth of debts, of which $200 million are owed to bond holders and $277 million to banks. Five percent of its total loans are classified as clean.
Land Bank earns P750 M
State-owned Land Bank of the Philippines said it posted net profit of P750 million in the January-April period, up 9 percent year-on-year, driven by higher revenues from loans and investments and strict management of overhead costs. One of the country’s 10 largest banks, LandBank had assets worth P292 billion as of end-April, representing 17 percent growth from a year earlier. Deposits totaled P221 billion, up 21 percent year-on-year, while loans grew 18 percent to P135.4 billion. In a statement, LandBank President and Chief Executive Officer Gary Teves expressed confidence that the bank will meet its full-year net profit target of P2.15 billion.
UN convenes CEO Summit
United Nations Secretary-General Kofi Annan will convene on June 24 the Global Compact Leaders Summit at UN Headquarters in New York. The Summit will be the largest gathering ever of CEOs, government officials and leaders of civil society on the topic of global corporate responsibility. Approximately 400 participants will attend the one-day Summit, including hundreds of chief executive officers and senior executives of major international corporations. President Luis Inacio Lula da Silva of Brazil will deliver the keynote luncheon address. Participants will assess the progress of the United Nations Global Compact and announce new initiatives. CEOs and other leaders will exchange experiences regarding the implementation of the Global Compact’s principles in the areas of human rights, labor conditions and the environment. Launched by Secretary-General Kofi Annan in 2000, the Global Compact today includes more than 1,400 companies. The Global Compact is the world’s largest voluntary corporate responsibility initiative, with networks and activities in more than 70 countries worldwide.
PSE to take over brokerage
The Securities and Exchange Commission (SEC) has granted the petition of Philippine Stock Exchange (PSE) to takeover the operations of debt-saddled brokerage firm Marino Olondriz y Cia (MOC). According to the Commission, findings submitted by the PSE and its Market Regulation Department (MRD) showed enough evidence to place the operations of MOC under the control of PSE in order to prevent further dispersal and dilution of MOC’s remaining assets. Under Section 33.1 (d) of the Securities Regulation Code (SRC), the PSE can takeover the operations of a member-broker "xxx when the Exchange shall have found that the financial condition of its member has so deteriorated that it cannot readily meet the demands of its customers for the delivery of securities and/or payment of sales proceeds, the Exchange shall, upon order of the Commission, takeover the operation of the insolvent member firm and immediately proceed to settle the member firm’s liabilities to its customers.
