NO MONEY FOR P10-BILLION ONDOY FUND - DBM
MANILA, OCTOBER 10, 2009 (STAR) By Jess Diaz -The government has no money for the additional P10-billion calamity fund that senators and congressmen are proposing for this year, Budget Secretary Rolando Andaya Jr. said yesterday.“There are no funds for this. There is no way we can certify that funds are available,” he told the House appropriations committee, which conducted a hearing on the proposal.
Rep. Junie Cua, committee chairman, said the extensive damage wreaked by storm “Ondoy” and typhoon “Pepeng” require that Congress appropriate additional calamity funds since the P2-billion calamity fund in the 2009 budget “is almost depleted.”
“But in passing a special appropriations bill, we have to meet certain requirements prescribed by the Constitution. These are a certification from the Bureau of Treasury that funds are actually available, and in case funds are not available, the bill should be accompanied by a revenue measure,” he said.
He said he had asked the treasury last week to issue the required certification, but that no such document has been given to his committee.
Majority Leader Arthur Defensor reminded the committee that the House has approved a P10-billion rehabilitation fund for Iloilo and other Western Visayas provinces devastated by typhoon “Frank” last year.
“But the measure is sleeping in the Senate committee on finance chaired by Sen. Edgardo Angara because it lacks the necessary certification that funds are available,” he said.
“We are hoping that Western Visayas could share in the proposed P10-billion additional calamity fund, but now we are facing the same problem,” he said.
Defensor pleaded with Andaya, a three-term congressman before joining President Arroyo’s Cabinet and former appropriations committee chairman, to come up with a remedy.
The budget secretary suggested that the President be authorized through a joint Senate-House resolution to tap the so-called “unprogrammed fund” in the 2009 budget for the rehabilitation needs of typhoon-ravaged areas.
But since this fund is not supported by actual cash, the government would have to resort to additional foreign borrowings, which would increase this year’s budget deficit, he said.
Defensor, Cua and other members of the appropriations committee agreed to adopt Andaya’s suggestion.
Northern Samar Rep. Paul Daza told his colleagues that he has reservations about further bloating the budget deficit as it would make life difficult not only for typhoon victims but for every Filipino.
Administration officials project this year’s funding gap at P250 billion, but some investment banks see it breaching the P300-billion mark. The deficit for the first six months has hit P188 billion.
A small group of senators and congressmen led by Senate President Juan Ponce Enrile and Cua agreed on the proposed P10-billion additional calamity fund a few days after Ondoy inundated many parts of Metro Manila and Rizal.
In a related development, Rep. Satur Ocampo of the party-list group Bayan Muna urged the Arroyo administration to make a public accounting of the millions of dollars in donations from the international community for typhoon victims.
“Every single centavo must be used to ensure the health, security and rehabilitation of the victims and their homes, as well as their damaged communities. The Arroyo government must be frequently reminded that it’s a mortal sin to steal from those who have already lost everything,” he said.
He said based on the latest reports, donations and pledges from foreign countries and international organizations have amounted to more than $13.22 million or around P615 million.
Ocampo suggested that the Commission on Audit and private auditing institutions be tapped to monitor the acceptance, disbursement and accounting of donated funds.
P500 billion loans at risk of default By Lawrence Agcaoili (The Philippine Star) Updated October 10, 2009 12:00 AM
MANILA, Philippines - Billions of pesos worth of loans are at risk of ending up in default due to the devastation wrought by tropical storm “Ondoy” and typhoon “Pepeng.”
Bangko Sentral ng Pilipinas officer-in-charge Nestor Espenilla Jr. said the estimated retail loan portfolio affected in calamity areas is about P500 billion or 24 percent of the total banking industry’s loan portfolio of P2.3 trillion.
“The initial estimate of the overall loan exposure in areas affected by Ondoy and Pepeng is more than P500 billion. Of course not all of that will be affected but even if you look at percentages, maybe one percent is already P5 billion,” Espenilla told reporters on the sidelines of the 52nd Charter Anniversary forum of the Rural Bankers Association of the Philippines.
Ondoy (international code name Ketsana) killed more than 300 people as floods swamped 80 percent of Metro Manila on Sept. 26, while Pepeng has so far killed more than 100 people and is currently devastating farming areas in northern Luzon, particularly Pangasinan.
Espenilla pointed out that both individual loans as well as loans to small companies and agri-industry are likely to end up in default due to the widespread damage from the two weather disturbances.
“It is hard to tell, it is too soon to tell at this time. The P500 billion is the estimate of retail loan portfolio affected in the calamity areas,” he said.
The National Capital Region or Metro Manila, which experienced deadly flooding at the height of Ondoy, accounts for about 30 percent of the country’s domestic output as measured by the gross domestic product.
Dow Jones Newswires quoted Espenilla as saying that the BSP is considering a proposal that will allow banks to stagger over five years the booking of loan losses from the storms.
Last Thursday, the central bank’s Monetary Board decided to earmark P5 billion in special rediscounting budget to help small and medium enterprises severely affected by Ondoy and Peping.
The BSP also said in a statement that the MB decided to allocate additional rediscounting loans as nearly 98 percent of its P60-billion rediscounting budget has already been utilized.
The board also decided to liberalize the guidelines on collaterals by including extended or restructured loans among the acceptable rediscountable papers. Banks have until March 31 next year to apply for special rediscounting lines and up to Dec. 31 to avail of these loans that could be renewed based on the original terms of the loan not exceeding five years.
Existing loans to bank clients in affected areas will also be excluded from the computation of past due ratios of banks if such loans are restructured or given relief.
Furthermore, the general loan loss provision for restructured loans of borrowers in affected areas would be reduced to one percent from five percent. The penalties for delays in the submission of supervisory reports have also been suspended.
Banks would also be allowed to provide financial assistance to their officers and employees affected by the calamity on top of the existing BSP-approved Fringe Benefit Program.
The central bank also granted rediscounting banks in affected areas a 60-day grace period to settle outstanding rediscounting obligations as of Sept. 28 with the BSP.
It also allowed banks to restructure with the BSP the outstanding rediscounted loans of borrowers affected by the calamity.
Areas affected by the calamity aside from Metro Manila are Mountain Province, Ifugao and Benguet, Pangasinan, La Union, Ilocos Sur, Isabela, Quirino, Nueva Vizcaya, Aurora, Nueva Ecija, Zambales, Pampanga, Bulacan, Tarlac, Bataan, Cavite, Laguna, Batangas, Rizal, Quezon, Mindoro Occidental, Mindoro Oriental, Marinduque, Catanduanes, Camarines Norte and Camarines Sur.
Espenilla said this was the fifth time that the central bank has extended relief measures after typhoons “Cosme,” “Frank,” “Milenyo,” and “Reming.”
Chief News Editor: Sol Jose Vanzi
© Copyright, 2009
by PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved