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Thursday, September 18, 2003
DATAWATCH - Philippines on track to meet FY budget deficit goal - IDEAglobal
Forex - Philippine peso closes at 3-wk low on Aug budget deficit
Philippine Aug budget deficit 18.00 bln pesos vs 8.11-bln ceiling
Philippines' Prime Gaming Q1 net profit 22.70 mln pesos vs 26.59 mln
Philippines' South China Resources plans to spin off oil exploration assets
Philippines' Arroyo says military no longer plotting coups
Manila shares close mixed amid consolidation; Ayala Corp extends gain
Philippines' PLDT launches Web portal targeting US-based Filipinos
Philippine Philex Aug copper/gold/silver output gross value 261.30 mln pesos
STOCK ALERT - Philippines' Meralco extends gains on higher Jan-Aug sales
Forex- Philippine peso weaker early on budget, BOP deficits
Philippine Meralco says to sign 44.0 bln peso savings deal with IPPs this year
Philippines' Music plans to hike capital by 1.00 mln usd, change name
Philippines, US seen to conclude 500-mln project financing, GSP expansion
Philippine govt seeks to increase stake in San Miguel - report

Wednesday, September 17, 2003
Philippines may issue 1.0 bln usd worth of bonds to pre-fund 2004 requirement
Philippine oil exploration blocks stir interest of four US firms - Perez
Forex - Philippine peso closes weaker vs dollar on Aug BOP deficit
Philippine Napocor's assets attract 25 companies - PSALM
Philippine Meralco's Jan-Aug sales up 5.70 pct yr-on-yr
Philippine Aug BoP deficit 414 mln usd, Jan-Aug BoP deficit 653 mln usd
Philippine Napocor's 250 mln usd 15-yr notes assigned 'AAA' rating-S&P
Philippines to keep 2003 budget deficit within 202-bln peso target -Boncodin
Philippines' Easycall gets subscription waiver to e-Performax capital call
Manila shares close sharply higher on Wall St rise; index at 15-mth high
Philippine leader confident unemployment will fall
Philippine Easycall shareholders approve call center, Internet units spin-off
Rise in Philippine unemployment rate due to bad weather - Neri
STOCKWATCH - Philippines' Ayala Corp extends gains on catch-up play
STOCK ALERT - Philippine Meralco up on likely rate hike bid, plan to pay debt
Philippines' Jollibee to merge two offshore units
Philippine debt to retain Standard & Poor's stable outlook - report
Philippines' Meralco to meet maturing obligations in September - report
Philippine August budget deficit exceeds 8.115 bln peso target - report
Philippines Aug budget deficit around 16.00 bln, exceeds ceiling - govt source
Philippines may raise 225 mln usd from international debt market this month
Philippines' Balabac Resources asks SEC to approve capital restructuring plan
IFC says may invest 125 mln usd in 2004 in Philippine projects
Philippines economic and corporate news summary KFJ34

September 15 - 16 
September 10 - 12 
September 8 - 9 
September 3 - 5 
September 1 - 2 


 

 

DATAWATCH - Philippines on track to meet FY budget deficit goal - IDEAglobal


     MANILA (AFX-Asia) - The administration of President Gloria Arroyo is expected to ensure that this year's budget deficit will settle within the 202 bln pesos target, IDEAglobal.com economist Julian Wee said.
     Arroyo may even present her government's fiscal performance to win votes if she reconsiders her earlier decision not to run in next year's elections, he said.
     Wee said the Philippine government's increased spending in August, which led to a bigger-than-programmed budget deficit, is not worrisome at this stage since the cumulative deficit for the first eight months of the year was still below the ceiling.
     For the first time in five months, the budget deficit stood at a little over 18.00 bln pesos in August, exceeding the 8.11-bln ceiling as government spent more to spur economic activities, the Department of Finance said.
     In the eight months to August, the deficit stood at 114.50 bln pesos, still below the target of 127.50 bln.
     The government said it remains confident in keeping the full-year deficit within the 202 bln ceiling, or 4.70 pct of gross domestic product.
     "I think there's nothing yet to worry about the budget deficit. The August deficit was above the target but the cumulative figure was still below the programmed level," Wee said.
     "The government has leeway to spend more in the second half after implementing a tight spending policy in the first half. I think that's good for the economy."
     Wee said he expects the full-year deficit to be "around the target" or "about 200 to 210 bln".
     Wee said Arroyo is unlikely to allow the budget deficit to become an issue against her.
     "She might use the deficit issue as part of her election platform," he said.
     Bing Icamina, chief economist at Wallace Business Unit, said he is more concerned about the government's capability to sustain its improved revenue collection performance.
     "I'm not concerned about overspending. I'm more concerned on sustaining the revenues of the government," he said in a local television interview.
     Budget Secretary Emilia Boncodin told AFX-Asia yesterday that the government will continue to use the savings it generated in the first half to spur economic activity, mainly by paying its obligations to contractors and suppliers.
     She stressed, however, that the government is "very conscious" about keeping the full-year deficit within target.
     (1 usd = 55.28 pesos)
     edelacruz@afxasia.com

 

Forex - Philippine peso closes at 3-wk low on Aug budget deficit


     MANILA (AFX-ASIA) - The peso closed at its weakest in three weeks against the US dollar after the market priced in the government's bigger-than-programmed budget deficit in August, dealers said.
     The central bank was seen in the market attempting to contain the peso's slide by providing dollar liquidity, they said. Central bank officials were not immediately available to comment.
     The peso closed at 55.280 to the dollar after trading in the range of 55. 160-55.330 on volume of 110.90 mln usd. It closed at 55.150 yesterday.
     It was the peso's weakest finish since Aug 27, when it closed at 55.330.
     "The market just priced in the budget deficit. But I expect demand for dollars at these levels to weaken," a commercial bank dealer said.
     He said the overall strength of the regional currencies, led by the yen, against the US unit should help limit the peso's weakness.
     The Finance department said the budget deficit stood at 18.00 bln pesos in August, exceeding the ceiling of 8.11 bln for the first time in five months as the government spent more to spur economic activities.
     For the first eight months of the year, however, the deficit stood at 114. 50 bln pesos, well below the ceiling of 127.50.
     The dealer said the central bank was supporting the peso at "various levels", unloading an estimated 20.00 mln usd in the market today.
     He said the dollar is likely to be traded in the range of 55.100-55.300 tomorrow.
     edelacruz@afxasia.com

 

Philippine Aug budget deficit 18.00 bln pesos vs 8.11-bln ceiling


     MANILA (AFX-ASIA) - The national government's budget deficit stood at 18. 00 bln pesos in August, exceeding the 8.11-bln ceiling as government spent more to spur economic activities, the Department of Finance said.
     It is the first time in five months that the deficit exceeded the monthly ceiling.
     Revenues for August stood at 51.12 bln against expenditures totalling 69. 29 bln.
     However, in the breakdown of data issued by the Finance department, the deficit figure totalled 18.17 bln pesos. The department acknowledged the discrepancy from the figure issued earlier, but declined to correct it.
     In the breakdown for the eight months to August given in the report, the deficit stood at 114.50 bln pesos, still below the target of 127.50 bln.
     Revenues during the period totalled 408.357 bln pesos versus expenditures of 522.873 bln.
     The government expects to keep the full-year deficit within the 202 bln ceiling.
     "This goes without saying that the government remains confident of meeting its full-year fiscal deficit target of 4.70 pct of GDP for 2003," Finance Secretary Jose Isidro Camacho said in a statement.
     He said the deficit exceeded the ceiling in August as a result of the government's "calibrated response to slowing economic activities during the month."
     The government, he added, decided to release more funds to the countryside, to pump-prime the economy.
     The Bureau of Internal Revenue collected a total of 38.43 bln pesos in August, exceeding its target by 460 mln, the finance department said in a statement. The bureau's tax collections account for the bulk of government revenues.
     "These gains continue to be the result of ongoing reforms aimed at expanding the tax base and increased tax collection efficiency," it said.
     Camacho said he expects the increase in revenue collections to be sustained, particularly at the BIR.
     "The revenue reform measures that we are implementing, which find strong support also from the private sector, coupled with government's commitment to prudent spending will keep us firmly on the road to fiscal discipline," he said.
     He said the government will be "more cautious" in spending in the remaining months of the year after having used up some of the savings generated in the early part of the year through lower-than-programmed spending.
     For the first time this year, the Bureau of Customs' collections fell short of its August target. It collected 7.857 bln pesos, short of its goal by 863 mln, the finance department said.
     It said this was due to "seasonal factors" and the lagged effect of the Iraq war and the SARS outbreak.
     (1 usd = 55.23 pesos)
     afxmanila@afxasia.com

 

Philippines' Prime Gaming Q1 net profit 22.70 mln pesos vs 26.59 mln


     MANILA (AFX-ASIA) - Prime Gaming Philippines Inc's three months to July 31 results:
      Revenue - 83.14 mln pesos vs 80.69 mln
      Expenses - 48.89 mln pesos vs 40.98 mln
      Net profit - 22.70 mln pesos vs 26.59 mln
      Earnings per share - 1.28 pesos vs 1.29
     (1 usd = 55.23 pesos)
     afxmanila@afxasia.com

 

Philippines' South China Resources plans to spin off oil exploration assets


     MANILA (AFX-ASIA) - South China Resources Inc said it will seek shareholders' approval for its proposal to spin off its oil exploration assets and activities to a wholly-owned subsidiary that it has yet to establish.
     In a disclosure to the stock exchange, the company said it is also seeking to amend its Articles of Incorporation to change its primary purpose to that of a holding company.
     The company has set a special stockholders meeting for Oct 22 to approve its proposals.
     afxmanila@afxasia.com

 

Philippines' Arroyo says military no longer plotting coups


     MANILA (AFX-ASIA) - Philippine President Gloria Arroyo today shrugged off rumors of a new coup plot against her government, expressing confidence the military has left such plotting behind.
     In a speech before retired generals, Arroyo thanked the heads of the group for publicly denying news reports that some of them were stirring up unrest within the military for another mutiny against the president.
     Arroyo swiftly quashed a mutiny that some 300 junior officers and soldiers launched on July 27, but reports of retired or active military men hatching new destabilization plots continue to circulate.
     "Despite the intrigues in the media, I never believed any retired general worth his salt would ever support an extra-constitutional bid for power," Arroyo said.
     "Because of your strong support for my government, destabilization plots are now consigned to the rumor mill."
     Earlier, Ernesto Gidaya, head of the Association of Retired Generals read a manifesto from the group declaring: "We unconditionally support President Gloria Arroyo and her administration."
     The organization also said it "calls on all our leaders and all our people to restrain unscrupulous politicians and groups from exploiting the situation for their own ulterior motives to the grave prejudice of our national interest".
     Arroyo said talk of such plots were "fuelled by partisan quarters that either wish to usurp constitutional power or to escape the rule of law and justice".
     She said military service has be based on "longevity of ideals not quick-fix solutions founded on fleeting adventurism."
     The July 27 mutineers said they were acting to fight corruption and improve the lot of soldiers.
     Arroyo called on the retired officers to use their experience to help reform the military, remarking "I would like you to help me address the most vital concerns of the armed forces."
     She also urged their contribution towards economic and political changes in the Philippines.
     Later, she highlighted the help of the US in upgrading the poorly equipped Philippine military, saying it had been "a faithful ally in the modernization of our armed forces."
     US President George W Bush will to make a short visit to Manila on Oct 18.

 

Manila shares close mixed amid consolidation; Ayala Corp extends gain


     MANILA (AFX-ASIA) - Share prices closed mixed with the key index marginally lower due to an anticipated technical correction and consolidation following recent sharp gains that extended up to the early part of today's session, dealers said.
     They, however, said the positive momentum remains intact after the market breached yesterday the 1,308 level, which was the previous year-to-date high.
     The composite index closed down 0.89 points, or 0.07 pct, at 1,319.72 on volume of 656.70 mln shares valued at 1.244 bln pesos. It traded between 1, 316.60 and 1,326.47.
     In the broader market, gainers led losers 29 to 21, with 49 stocks unchanged.
     Barring any unfortunate developments locally and abroad that may reverse the positive sentiment, dealers said the key index is expected to stay above the 1,300 level and consolidate before staging another rally.
     They added investors are looking positively at corporate earnings and economic growth prospects in the second half and set aside concerns about next year's elections.
     "After breaching the 1,308 level yesterday, the market needs a break. It has to consolidate for the meantime, but support is strong at the 1,300 level, " said Regina Capital Development Corp analyst Gomer Tan.
     "If no untoward events happen that will undermine investor sentiment, we can expect a continuation of the rally after the consolidation period," he said.
     DA Market Securities president Nestor Aguila said investors are upbeat on earnings potential of companies with the economic outlook looking favorable.
     Unicapital Securities senior analyst Elena Ponceca said despite a volatile peso and the budget deficit concerns, local interest rates remain relatively low, while the US economic environment looks favorable for a trading partner such as the Philippines.
     She added the local market also has a lot of room to play catch up with other regional markets, which have posted stronger gains so far.
     SM Prime Holdings was top traded, but unchanged at 6.30 pesos on volume of 104.40 mln shares, with turnover mostly involving cross sales.
     A series of cross sales in SM Prime amounting to 635.94 mln pesos were transacted towards the close of the trading, data from the stock exchange show.
     No other details were immediately available.
     Ayala Corp was up 0.10 at 5.00 on 28.46 mln shares, extending gains on continued speculative interest, dealers said.
     Some analysts said investors may be taking positions on speculation that Ayala Corp will eventually choose to acquire, at a favorable price, part of the Globe Telecom stake that Deutsche Telekom is offering.
     Ayala Corp may also book strong earnings in the third quarter on gains of unit Globe mainly from the wireless business, they added.
     Its property unit Ayala Land was down 0.10 at 6.70 on 5.19 mln shares.
     BPI was unchanged at 43.50. Globe was down 5.00 at 690.00.
     Philippine Long Distance Telephone was unchanged at 665.00, despite a further advance of its New York-listed American Depositary Receipts, which rose 0.28 usd to 12.27 last night.
     Manila Electric B, available to foreign investors, rose 0.50 to 23.75 on 2.14 mln shares, while Meralco A gained 0.75 to 15.75 on 1.28 mln shares.
     The company reported sales growth of 5.70 pct year-on-year for the January-August period, boosting its confidence in meeting its full-year growth target of 4.00-5.00 pct.
     Meralco's parent First Philippine Holdings was down 0.25 at 18.50 on 1.09 mln shares.
     The all-share index was down 0.23 points at 809.13.
     The commercial-industrial index fell 0.56 to 1,921.31 while property eased 2.65 to 590.12.
     Mining was up 3.50 at 1,237.24. Oil was down 0.03 at 1.35.
     Banking and financial services gained 0.84 to 442.61.
     (1 usd = 55.23 pesos)
     edelacruz@afxasia.com

 

Philippines' PLDT launches Web portal targeting US-based Filipinos


     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co today launched a new Web portal, PLDTONLINE.COM, to widen its market to include Filipinos based in the United States.
     Available through PLDTONLINE.COM are PLDT products and services such as ePhoneCards, prepaid fixed line phone credits, prepaid cellular phone credits, Jollibee Foods gift certificates, and news from the Philippines.
     "We aspire to become the preferred online starting point for Filipinos living outside the Philippines. By offering information, products, and services of PLDT and our partners in the Philippines and the US (through the website), Filipinos abroad can stay in touch with their friends and family back home and even buy products from them," said Alfredo Panlilio, president of PLDT Global.
     Panlilio said PLDTONLINE.COM will make available in the future value-added telecommunications services from PLDT and other services through partnerships with leading Philippine companies.
     afxmanila@afxasia.com

 

Philippine Philex Aug copper/gold/silver output gross value 261.30 mln pesos


     MANILA (AFX-ASIA) - Philex Mining Corp said it produced in August 1.63 mln kilograms of copper, 222,638 grams of gold and 251,287 grams of silver with an an estimated gross value of 261.30 mln pesos.
     The company earlier reported an output with a value of 258.70 mln pesos for July.
     Shipments of copper, gold and silver in August were valued at 290.15 mln pesos, Philex told the stock exchange.
     (1 usd = 55.22 pesos)
     edelacruz@afxasia.com

 

STOCK ALERT - Philippines' Meralco extends gains on higher Jan-Aug sales


     MANILA (AFX-ASIA) - Manila Electric Co shares firmed further after it said sales grew 5.70 pct year-on-year for the January to August period, dealers said.
     Interest in Meralco is sustaining amid its continuing recovery from recent losses, they added.
     Meralco B, available to foreign investors, was up 0.25 pesos at 23.50 on volume of 1.19 mln shares and Meralco A up 0.25 at 15.25 on 828,800 shares.
     Chief finance officer Daniel Tagaza said Meralco's favorable sales so far has given the company confidence that full-year revenue will grow as targeted at 4.00-5.00 pct year-on-year.
     The company booked a net profit of 391.00 mln pesos for the second quarter to June, a turnaround from the first quarter's net loss of 325.00 mln, due to a tariff hike and a 2.80 pct year-on-year increase in sales volume.
     Meralco is confident it can meet its full-year net profit target of 1.00 bln pesos.
     According to reports, the company is also preparing to file another tariff increase petition with the Energy Regulatory Commission soon.
     Meanwhile, a Manila newspaper has today quoted Tagaza as saying that the company is looking at several options to address its 1.20 bln peso long-term debt due in October.
     The options include seeking a rollover, a restructuring, or raising 200. 00 mln usd through a mortgage trust indenture that will serve as collateral, Tagaza said.
     He added that Meralco faces no problem paying this month about 1.30 bln pesos in maturing loans, which are to be settled using internal funds.
     In a disclosure to the stock exchange today, Meralco said it expects to sign revisions within this year to its power supply contracts with independent power producers to bring about savings of 44.0 bln pesos for the duration of the deals.
     The estimated savings will be passed on to Meralco's more than 3.00 mln customers in metropolitan Manila and nearby provinces on the main island of Luzon.
     (1 usd = 55.22 pesos)
     edelacruz@afxasia.com

 

Forex- Philippine peso weaker early on budget, BOP deficits


     MANILA (AFX-ASIA) - The peso was weaker in early morning trade, extending yesterday's decline, on reports the government has failed to contain its budget deficit for the month of August, dealers said.
     They added a reversal in the country's balance of payment in August also triggered some dollar buying among corporate clients.
     At 9.59 am, the peso had averaged 55.223 pesos after trading between 55. 160 and 55.250 on volume of 32.50 mln usd. It closed at 55.150 yesterday.
     "Banks and clients would like to cover their short dollar positions following a barrage of negative news on the economic front," a local bank dealer said.
     The national government has reportedly overshot its 8.12 bln peso budget deficit ceiling in August by more than 5.00 bln pesos due to higher spending as the government settled contractual obligations.
     The finance department will announce the actual figures later today.
     The central bank likewise reported a reversal in the country's balance of payments position in August to a deficit of 414.00 mln usd from a surplus of 377.00 mln usd in July. The BOP deficit for the eight months to August stood at 653.00 mln usd.
     Dealers said a weaker BOP suggests weak dollar inflows, which have been the case in the light of lower investments from overseas, and a disappointing export performance.
     Dealers see the peso trading at a low of 55.250 for the rest of the trading session.
     "There have been token offers from the central bank at 55.250 to temper the fall, suggesting that this is how far the market can go for the moment," another dealer said.
     cecille.yap@afxasia.com

 

Philippine Meralco says to sign 44.0 bln peso savings deal with IPPs this year


     MANILA (AFX-ASIA) - Manila Electric Co said it expects to sign revisions within this year to its power supply contracts with independent power producers to bring about savings of 44.0 bln pesos for the duration of the deals.
     The estimated savings will be passed on to Meralco's more than 3.0 mln customers in metropolitan Manila and nearby provinces on the main island of Luzon.
     "The parties have already commenced the drafting of the renegotiated terms and conditions into formal amendments to the power supply contracts," Meralco said in a disclosure to the stock exchange.
     The company has been negotiating the revised terms with its IPPs, affiliate First Gas Power, FGP Corp and Quezon Power Philippines Ltd.
     "We are hoping that the amendments to the contracts can be signed and presented to the Energy Regulatory Commission for approval not later than the end of the year so that the savings on purchased power cost from Meralco's IPPs estimated at 44.0 bln pesos over the duration of the contracts can be enjoyed by the customers," Meralco said.
     (1 usd = 55.15 pesos)
     cecille.yap@afxasia.com

 

Philippines' Music plans to hike capital by 1.00 mln usd, change name


     MANILA (AFX-ASIA) - Music Corp said it will seek shareholders' approval for its plan to raise 1.00 mln usd in additional capital and change its corporate name to Music Semiconductors Corp.
     It disclosed to the stock exchange it also wants to be known as a manufacturing company and not a holding firm and would seek amendment to its Articles of Incorporation to change its primary business purpose.
     Music added its board of directors, which met yesterday, has approved its merger with its wholly-owned subsidiary, Music Semiconductors Philippines Inc.
     (1 usd = 55.15 pesos)
     edelacruz@afxasia.com

 

Philippines, US seen to conclude 500-mln project financing, GSP expansion


     MANILA (AFX-ASIA) - The Philippines and US governments are expected to conclude negotiations on the financing of two projects worth 500.00 mln usd and the expansion of Philippine exports eligible for the US Generalized System of Preferences (GSP) during US President George Bush's October visit to Manila, Trade and Industry Secretary Manuel Roxas II said.
     Also likely to be discussed during the visit are the proposed export incentives for automobiles, which are strongly being lobbied by American automakers.
     The 500.00 mln usd project financing involves a 350.00 mln usd full loan guarantee to be given by US-based Overseas Private Investment Corp to Cypress Semiconductor/ SunPower's solar cell-based project in the country.
     OPIC has also been asked to finance the Bureau of Customs's acquisition of container X-ray machines worth 150.00 mln usd.
     Roxas said the Philippines will also push for the inclusion in the US GSP list of new products such as carageenan, pineapple juice and canned tuna.
     The US, during President Gloria Arroyo's state visit in May, committed to grant the Philippines 100.00 mln usd more in export privileges for new products on top of the 1.00 bln worth of Philippine exports under the GSP list.
     cecille.yap@afxasia.com

 

Philippine govt seeks to increase stake in San Miguel - report


     MANILA (AFX-ASIA) - The government is seeking to acquire an additional 5. 00 pct stake in San Miguel Corp by enforcing a Sept 14, 2000 Supreme Court order for the transfer of some 25.45 mln shares of the company to the government, BusinessWorld newspaper reported.
     The report, citing Presidential Commission on Good Government commissioner Ruben Carranza, said the government would be able to increase its San Miguel stake to about 23.00 pct - if the "treasury shares" worth around 9.00 bln pesos were transferred to the government.
     That is equal to the stake currently held by company chairman and chief executive officer Eduardo Cojuangco Jr, the report said.
     Carranza was quoted as saying that the PCGG, care-taker of assets acquired by the the late President Ferdinand Marcos and his associates, failed to implement that court decision due to the "complex circumstances" involved in the shares' transfer.
     He said he would write to the San Miguel board this week to ask for the immediate enforcement of the Supreme Court order.
     The government is also claiming ownership of a 27.00 pct block of San Miguel, which is part of the 47.00 pct stake in the food and beverage conglomerate that was allegedly acquired by Cojuangco using taxes collected from coconut farmers during the Marcos administration.
     The Supreme Court had given Cojuangco the right to vote for the 20.00 pct block of San Miguel.
     afxmanila@afxasia.com

 

Philippines may issue 1.0 bln usd worth of bonds to pre-fund 2004 requirement


     MANILA (AFX-ASIA) - The national government may issue as much as 1.00 bln usd worth of bonds in the international market before the end of the year to raise more than half of its 1.80 bln usd financing requirements for next year, National Treasurer Sergio Edeza said.
     He echoed concerns of Finance Secretary Jose Isidro Camacho that the presidential election in May 2004 will likely make foreign borrowing more difficult and costly in the first half of next year.
     "We don't want to be borrowing during an election year because even if we have good economic fundamentals, political jitters overwhelm the market. We could borrow 1.00 bln usd but it depends on the pricing," Edeza told reporters.
     The national government is also planning to raise between now and October its residual requirement of 225 mln usd within the year.
     "When politics enter the picture, the more difficult it becomes to borrow because it becomes more expensive. Investors seek a higher yield," Edeza said.
     (1 usd = 55.150 pesos)
     afxmanila@afxasia.com

 

Philippine oil exploration blocks stir interest of four US firms - Perez


     MANILA (AFX-ASIA) - Four US-based exploration companies have shown interest in bidding for 46 petroleum exploration blocks off the coast of Sulu, Palawan and Reed Bank in the southern Philippines, Energy Secretary Vicente Perez said.
     The four are Amerada Hess , Occidental Petroleum Corp , Marathon Oil Corp and Hunt Oil Corp, all based in Texas.
     "The companies bought the data and inquired at the Department of Energy," Perez told reporters.
     Last month. the government launched the first petroleum public contracting round as a first step to bidding, instead of awarding 46 new exploration blocks on a "first come, first serve" basis.
     Interested parties intending to bid for the exploration blocks will have seven months to evaluate data the energy department provided through virtual data rooms in Houston, London, Stavanger and Manila.
     The awarding of contracts will take place in April-May 2004. Winning bidders will be entitled to certain tax privileges and other perks.
     afxmanila@afxasia.com

 

Forex - Philippine peso closes weaker vs dollar on Aug BOP deficit


     MANILA (AFX-ASIA) - The peso closed weaker against the dollar as the reversal in the country's balance-of-payments (BOP) position in August to a deficit served as a reason for market players to buy up the US unit, dealers said.
     The peso closed at 55.150 to the dollar, its weakest for the day, after hitting a high of 54.980 early in the session, on volume of 139.70 mln usd. It closed at 55.050 yesterday.
     Dealers said corporate demand and lingering political concerns ahead of next year's elections have been keeping the peso at the 55/dollar levels.
     News that the country recorded a BOP deficit of 414 mln usd in August, after posting a surplus of 377 mln in July, reached the market shortly before trading closed, they said.
     "The BOP numbers in August are disappointing after we saw surpluses in previous months," a commercial bank dealer said.
     The BOP deficit indicates weak inflows.
     In the eight months to August, the central bank said the BoP deficit widened to 653 mln usd from 239 mln in the January-July period.
     The central bank was not seen in the market today.
     The dealer sees the dollar traded at 55.000-55.200 tomorrow.
     edelacruz@afxasia.com

 

Philippine Napocor's assets attract 25 companies - PSALM


     MANILA (AFX-ASIA) - Power Sector Assets and Liabilities Management Co (PSALM) vice president Froilan Tampinco said 25 local and foreign companies have expressed interest in acquiring the electricity generating assets of the state-owned National Power Corp.
     "As of Sept 16, we have received letters of interest from 25 firms," he said at a business forum.
     PSALM was formed to handle the privatization of Napocor's power generating and transmission assets.
     Among the interested groups, he said, are Mirant Corp, Chubu Electric Power Co, Mitsubishi Corp, First Gas Power Corp and Marubeni Corp.
     Under the plan, Napocor's generating assets will be pooled into four groups, he said.
     He said the final list of assets to be sold will be released next month.
     afxmanila@afxasia.com

 

 

Philippine Meralco's Jan-Aug sales up 5.70 pct yr-on-yr


     MANILA (AFX-ASIA) - Manila Electric Co's sales rose 5.70 pct year-on-year in the eight months to August, company chief finance officer Daniel Tagaza said.
     This boosts Meralco's expectations full-year sales will meet its growth target of 4.00-5.00 pct, he told reporters.
     "We are confident that we can meet our target of four to five percent given the strong sales performance per kilowatthour for the past eight months, " Tagaza said.
     "We hope we can sustain this growth. We need to finance our capital expenditures and the payment of our loans," said Meralco head of utility economics Ivanna dela Pena.
     The company booked a net profit of 391.00 mln pesos in the second quarter to June, a turnaround from the first quarter's net loss of 325.00 mln, thanks to a tariff hike and a 2.80 pct year-on-year increase in sales volume.
     Meralco officials have expressed confidence they will meet the full-year net profit target of 1.00 bln pesos.
     (1 usd = 55.02 pesos)
     afxmanila@afxasia.com

 

Philippine Aug BoP deficit 414 mln usd, Jan-Aug BoP deficit 653 mln usd


     MANILA (AFX-ASIA) - The Philippines recorded a balance-of-payments (BoP) deficit of 414 mln usd in August and 653 mln usd for January to August, central bank deputy governor Amando Tetangco Jr said.
     The BOP deficit for January to August widened from the 239 mln usd recorded for January to July.
     In July, there was a BoP surplus of 377 mln usd.
     afxmanila@afxasia.com

 

Philippine Napocor's 250 mln usd 15-yr notes assigned 'AAA' rating-S&P


     MANILA (AFX-ASIA) - Standard & Poor's said it has assigned a preliminary "AAA" rating on the National Power Corp's 250.0 mln usd 15-year unsecured guaranteed notes issue.
     Bear, Stearns & Co Inc is arranging the notes issue, which US-based Overseas Private Investment Corp (OPIC) will guarantee.
      "The preliminary rating is based on the strength and comprehensiveness of the OPIC policy coverage and the ability and willingness of OPIC to make any payments that may be required under the terms of its expropriation insurance policy, should there be a default on the payment of amounts due under the guranteed note by both Napocor and the Republic of the Philippines, " S&P said in a presales report.
     S&P said the sovereign guarantees from both the Philippines Government and OPIC will remain valid even after the notes are transferred from Napocor to its residual company, Power Sector Assets and Liabilities Management Corp (PSALM).
     PSALM is responsible for privatizing Napocor's power generation and transmission assets and will handle its residual assets and liabilities on completion of the exercise.
     "The preliminary rating does not address the ability of Napocor or the Philippines Government to make payments under the terms of the guaranteed note or the sovereign guarantee, respectively, on either an "as scheduled" or accelerated basis," S&P said.
     To carry out the notes transaction, after failing recently to tap the international debt market, Napocor established Philippine Power Trust I, a US-based grantor trust, to act as issuer of certificates due 2018.
     The national government earlier raised 750.0 mln usd for the state-owned utility through the issue of 10.5-year global bonds.
     Napocor needs 1.2 bln usd to finance this year's operating requirements and to refinance loans.
     The company's guaranteed notes will form the principal asset backing the issue of trust certificates.
     afxmanila@afxasia.com

 

Philippines to keep 2003 budget deficit within 202-bln peso target -Boncodin


     MANILA (AFX-ASIA) - The government will keep its budget deficit within the 202-bln peso ceiling for the whole year despite increased spending in the second half, which led to a bigger-than-programmed deficit in August, Budget Secretary Emilia Boncodin said.
     She confirmed that the government exceeded its programmed expenditures for August, but could not provide figures.
     A government source, citing preliminary figures, said the August deficit exceeded the 8.10-bln peso ceiling by about 100 pct to "around 16 bln."
     Newspaper reports, meanwhile, quoted unnamed sources as saying that the deficit for August stood at "more than 5 bln pesos."
     "I was able to talk to (National) Treasurer (Sergio) Edeza this morning and he told me that we exceeded the August target but the deficit for the January-August period remained below the ceiling," Boncodin told AFX-Asia by phone.
     The government has set a 127.10-bln peso deficit ceiling for the first eight months of the year.
     She said the government would continue to spend more in the coming months since it has generated some savings from January to July through lower-than-programmed spending.
     "We thought that for August to December, we need to see some activities. But definitely we are very conscious about our full-year deficit target," she said.
     She said the increased spending by the government should be viewed positively as "it will provide some liquidity to the economy."
     The Budget department began paying obligations to contractors and suppliers in July after having contained the budget deficit below targets.
     The government hopes that its increased spending would help create jobs particularly in the rural sector, said presidential palace spokesman Ricardo Saludo.
     He said that according to Finance Secretary Jose Isidro Camacho, the government has 24 bln pesos in extra funds to pay off its obligations to contractors and suppliers.
     "We are keeping well within our programmed ceiling for the deficit, which is 202 bln pesos," he told reporters.
     It is the first time in five months that the monthly deficit shot up beyond the ceiling despite continuing improvement in the government's revenue collection performance.
     The Bureau of Internal Revenue (BIR) earlier said, citing preliminary figures, that it exceeded its 38.01 bln peso tax collection target for August by almost 500 mln.
     The BIR's higher-than-expected collections offset the 400 mln peso shortfall incurred by the Bureau of Customs last month.
     (1 usd = 55.02 pesos)
     edelacruz@afxasia.com

 

Philippines' Easycall gets subscription waiver to e-Performax capital call


     MANILA (AFX-ASIA) - Easycall Communications Philippines Inc said its board of directors has approved a proposal to waive subscription to the capital call of affiliate e-Performax Contact Centers Corp, which requires more capital to fund an expansion program.
     In a disclosure to the stock exchange, Easycall said it needed the waiver as the company also needs to raise additional funding for its own working capital requirements.
     The company said the board also approved moving its stockholders' meeting to Nov 12, 2003, from Oct 18.
     Stockholders as of Oct 15 shall be allowed to vote, it added.
     afxmanila@afxasia.com

 

Manila shares close sharply higher on Wall St rise; index at 15-mth high


     MANILA (AFX-ASIA) - Share prices closed sharply higher for the second straight day, with the key index hitting its highest level in 15 months, on the back of hefty overnight gains in Wall Street, dealers said.
     Bargain-hunting and follow-through buying on select blue chips led by SM Prime, Ayala Corp and Philippine Long Distance Telephone Co boosted the local bourse's performance, they added.
     The composite index closed up 25.20 points or 1.95 pct at 1,320.61 on 580. 43 mln shares worth 711.25 mln pesos. It traded between 1,307.36 and 1,320.61.
     It was the index's highest close since June 4, 2002, when it ended at 1, 327.29.
     Gainers beat losers 49 to 11, with 37 stocks unchanged.
     The US Federal Reserve kept key interest rates at a 45-year low of 1.00 percent Tuesday and said its stand could be maintained for a "considerable" period, powering US stocks to a rally.
     Dealers said investors have at the moment discounted political concerns ahead of the 2004 presidential elections and are looking at positive developments overseas.
     "Generally, we reflected the strong results of the US market last night, with other regional bourses also trading higher today," Asiasec Equities analyst Oliver Plana said.
     Summit Securities president Harry Liu said "the market right now is being carried by PLDT and the upswing in Dow Jones."
     But he expects the market to encounter some resistance as it continues to trek upward. The next resistance level is set at 1,330.
     DA Market Securities president Nestor Aguila said he is hopeful investors have learned to discount political events and have instead focused on corporate and economic fundamentals.
     Aguila said his "optimistic view" suggests the market is poised to test the 1,385-1,400 level by the end of the year on the back of expected strong gains in the telecommunications and services sectors.
     SM Prime was top-traded, up 0.10 pesos at 6.30 on 26.06 mln shares.
     Ayala Corp gained 0.30 pesos to 4.90 on 21.90 mln shares. Dealers said the company extended its rally as it continued to play catch up after losing out on recent market gains.
     They said some investors may also be taking positions on speculation that Ayala Corp will eventually choose to acquire a part of the Globe Telecom stake that Deutsche Telekom is offering.
     PLDT gained 30 pesos to 665 on 142,730 shares, following a 0.41 usd rise in its American Depositary Receipts to 11.99 last night.
     Bank of the Philippine Islands was up 1.00 peso at 43.50 on 967,500 shares.
     Meralco B, open to foreigners, gained 1.00 peso to 23.25 on 1.79 mln shares. Meralco A rose 0.25 pesos to 15 on 936,900 shares.
     The shares extended their advance amid expectations the utility will file another tariff increase petition with the Energy Regulatory Commission soon, dealers said.
     International Container Terminal Services In was up 0.05 pesos at 2.85 on 8.20 mln shares.
     Metrobank gained 0.50 pesos to 30 on 636,700 shares.
     The all-shares index was up 7.72 points at 809.36.
     The commercial-industrial index was up 34.99 at 1,921.87 and property rose 14.97 to 592.77.
     Mining was up 2.88 at 1,233.74, while oil was steady at 1.38.
     
     Banking and finance was up 5.54 at 441.77.
     (1 usd = 55.02 pesos)
     cecille.yap@afxasia.com

 

Philippine leader confident unemployment will fall


     MANILA (AFX-ASIA) - President Gloria Arroyo has expressed confidence a sudden rise in unemployment will be reversed later this year, but warned that political squabbling could delay any improvement.
     Figures released yesterday showed that the unemployment rate hit 12.7 percent in July, up from 11.2 percent at the end of April and 11.2 percent a year earlier.
     "I am confident that more jobs have been restored in the agricultural sector as the El Nino (weather pattern) has abated," Arroyo said, referring to the drought earlier this year which reduced agricultural production.
     "We are also determined to strike up more investments in the industrial and services sectors as economic activities pick up towards year-end," the president said.
     Agriculture employs about a third of the labor force.
     At the same time, Arroyo warned that the country must first shake off "the syndrome of destabilization and excessive politicking to get investments on track."
     A military mutiny by some 300 soldiers seeking Arroyo's resignation swiftly collapsed on July 27 while the president's family been the subject of attacks by opposition legislators who accuse her husband and brother-in-law of corruption.

 

Manila shares close sharply higher on Wall St rise; index at 15-mth high


     MANILA (AFX-ASIA) - Share prices closed sharply higher for the second straight day, with the key index hitting its highest level in 15 months, on the back of hefty overnight gains in Wall Street, dealers said.
     Bargain-hunting and follow-through buying on select blue chips led by SM Prime, Ayala Corp and Philippine Long Distance Telephone Co boosted the local bourse's performance, they added.
     The composite index closed up 25.20 points or 1.95 pct at 1,320.61 on 580. 43 mln shares worth 711.25 mln pesos. It traded between 1,307.36 and 1,320.61.
     It was the index's highest close since June 4, 2002, when it ended at 1, 327.29.
     Gainers beat losers 49 to 11, with 37 stocks unchanged.
     The US Federal Reserve kept key interest rates at a 45-year low of 1.00 percent Tuesday and said its stand could be maintained for a "considerable" period, powering US stocks to a rally.
     Dealers said investors have at the moment discounted political concerns ahead of the 2004 presidential elections and are looking at positive developments overseas.
     (1 usd = 55.02 pesos)
     cecille.yap@afxasia.com

 

Philippine Easycall shareholders approve call center, Internet units spin-off


     MANILA (AFX-ASIA) - Easycall Communications Philippines Inc said more than two-thirds of its shareholders has approved a board resolution to spin off the company's Internet and call center businesses into a wholly-owned unit.
     Save for its investments in e-Performax and real estate, all its assets will be transferred to a new subsidiary, the company said.
     "The stockholders also authorized the board and its officers to undertake the necessary actions to implement this resolution," Easycall said.
     Company directors earlier voted to dispose of non-operation related real estate assets, which include condominium units and various real estate properties in Tagaytay City, General Trias in Cavite and Quezon City.
     afxmanila@afxasia.com

 

Rise in Philippine unemployment rate due to bad weather - Neri


     MANILA (AFX-ASIA) - Unfavorable weather, which resulted in job losses in the agriculture sector, was to blame for the rise in the July unemployment rate, Economic Planning Secretary Romulo Neri said.
     The unemployment rate rose to 12.70 pct in July from 12.20 pct in April and 11.20 pct a year ago, the National Statistics Office said yesterday. Some 4.35 mln Filipinos were unemployed as of July compared with 4.22 mln in April and 3.81 mln a year ago.
     "Unemployment rose on account of the 760,000 jobs lost in agriculture. The increase in unemployment is weather-related, rather than a reflection of labor market fundamentals," Neri said in a statement.
     He noted the the labor force survey conducted by the NSO covered the second to fourth week of July when agriculture activities were "on hold."
     "Agriculture production is also seasonally low in the third quarter," he added.
     In contrast, however, Neri said employment in industry and services sectors increased, with manufacturing, construction and mining creating most of the jobs in the industry sector.
     edelacruz@afxasia.com

 

STOCKWATCH - Philippines' Ayala Corp extends gains on catch-up play


     MANILA (AFX-ASIA) - Ayala Corp was higher as it continued to play catch up after losing out on recent market gains, dealers said.
     Some investors may also be taking positions on speculation that Ayala Corp will eventually choose to acquire part of the Globe Telecom stake that Deutsche Telekom is offering.
     At 11.05 am, Ayala Corp remained top traded and up 0.30 pesos, or 6.52 pct, at 4.90 on volume of 15.52 mln shares.
     The composite index rose 19.99 points, or 1.54 pct, at 1,315.40.
     "The stock lagged behind recent rallies of some blue chips. It's just catching up," said Westlink Global Equities chairman Rommel Macapagal.
     Other analysts, however, said interest in Ayala Corp may have also been triggered by speculations that it may acquire more shares in Globe Telecom.
     Ron Rodrigo, a research consultant with Accord Capital Equities, said Ayala Corp's acquisition of the Deutsche Telekom stake will give it more control of Globe and possibly bigger gains, especially with the outlook on the mobile phone business still positive.
     Deutsche Telekom offered its 24.80 pct stake in Globe to partners Ayala Corp and Singapore Telecommunications Ltd.
     Ayala Corp and SingTel earlier allowed a 45-day exclusive offer to purchase the Globe shares to lapse, but said they remain interested in acquiring the stake, depending on the price.
     (1 usd = 55.02 pesos)
     edelacruz@afxasia.com

 

STOCK ALERT - Philippine Meralco up on likely rate hike bid, plan to pay debt


     MANILA (AFX-ASIA) - Manila Electric Co shares were firmer in early trade, extending gains amid expectations the utility will file another tariff increase petition with the Energy Regulatory Commission soon, dealers said.
     A newspaper report, citing an unnamed Meralco official, that the company will be able to settle an unspecified amount of obligations maturing this month also helped sustain buying interest in Meralco, they added.
     The overall positive mood in the market, lifted further on Wall Street's overnight rally, is another factor, with foreign investors seen accumulating local blue-chip stocks, they added.
     Meralco B, open to foreign investors, was up 0.75 pesos, or 3.37 pct, at 23.00 on volume of 446,400 shares.
     Meralco A rose 0.50 pesos, or 3.39 pct, to 15.25 on 485,000 shares.
     The company booked a net profit of 391.00 mln pesos in the second quarter to June, a turnaround from the first quarter's net loss of 325.00 mln, thanks to a tariff hike and a 2.80 pct year-on-year increase in sales volume.
     Meralco officials have expressed confidence of meeting the full-year net profit target of 1.00 bln pesos.
     (1 usd = 55.01 pesos)
     edelacruz@afxasia.com

 

Philippines' Jollibee to merge two offshore units


     MANILA (AFX-ASIA) - Jollibee Foods Corp said it will merge two of its offshore units, Superior FSC Corp and FSC Foods Corp.
     It told the stock exchange that the merger plan will be presented to its board for approval on Sept 29 and to stockholders at a special meeting on Oct 17.
     afxmanila@afxasia.com

 

Philippine debt to retain Standard & Poor's stable outlook - report


     MANILA (AFX-ASIA) - Standard & Poor's is likely maintain its stable outlook on the country's debts, Philippine Daily Inquirer reported, quoting S&P lead analyst for the Philippines Takahira Ogawa.
     S&P officials are in the Philippines for the ratings agency's annual review on the Philippines, the paper said.
     "As of today, we are keeping a stable outlook for the Philippines. There are a lot of political jitters leading to the May elections, but we have taken this into account in our previous actions," Ogawa was quoted as saying.
     Ogawa, however, said it will take more than just keeping the budget deficit within target for seven months to convince investors that the fiscal sector has turned around.
     cecille.yap@afxasia.com

 

Philippines' Meralco to meet maturing obligations in September - report


     MANILA (AFX-ASIA) - Manila Electric Co would be able to settle its obligations that mature in September, the Philippine Star newspaper reported, quoting an unnamed company official.
     The report did not however say how much of the company's obligations will mature this month.
     "I think we can handle the payments for the long-term debts maturing this month," a Meralco official was quoted to have said.
     The official however admitted that the company may have difficulty in settling 2.50 bln pesos in maturing loans due in October.
     Meralco is undertaking a 30.50 bln peso refund of overcharges to customers.
     (1 usd = 55.05 pesos)
     cecille.yap@afxasia.com

 

Philippine August budget deficit exceeds 8.115 bln peso target - report


     MANILA (AFX-ASIA) - The national government overshot its 8.115 bln peso budget deficit ceiling in August by more than 5.00 bln pesos due to higher spending as the government settled contractual obligations, the Philippine Daily Inquirer reported, quoting unnamed sources.
     It is the first time in five months that the monthly deficit shot up beyond the ceiling despite continuing improvement in the government's revenue collection performance.
     For January to August, the deficit was estimated at 110.00 bln pesos, lower than the 12.115 bln peso target for the period.
     The report quoted Finance Secretary Jose Isidro Camacho as saying that revenue collections as of August continued to perform above expectations.
     The Bureau of Internal Revenue reportedly collected 38.345 bln pesos or 422.00 mln pesos higher than the 38.01 bln peso target.
     The Bureau of Customs, however, missed its 8.70 bln target by 400.00 mln pesos.
     (1 usd = 55.05 pesos)
     cecille.yap@afxasia.com

 

Philippines Aug budget deficit around 16.00 bln, exceeds ceiling - govt source


     MANILA (AFX-ASIA) - The national government's budget deficit reached around 16.00 bln pesos in August, double the 8.10-bln peso ceiling, as expenditures overshot the target, a government source said.
     "It's roughly around 16 bln pesos," the source said.
     It is the first time in five months that the monthly deficit shot up beyond the ceiling despite continuing improvement in the government's revenue collection performance.
     The Bureau of Internal Revenue (BIR) earlier said, citing preliminary figures, that it exceeded its 38.01 bln peso tax collection target for August by almost 500 mln.
     The BIR's higher-than-expected collections offset the 400 mln peso shortfall incurred by the Bureau of Customs last month.
      BIR collections account for the bulk of the national government's total revenues.
     The government's budget deficit for July was 15.80 bln pesos, below the 17.10 bln ceiling, marking the fourth straight month that the deficit was below the monthly target.
     For the seven months to July, the deficit reached 95.40 bln pesos, also below the ceiling of 119 bln.
     The government aims to cap the deficit at 127.10 bln for the first eight months of the year.
     The source said the government is expected to have stayed within the eight-month target despite the bigger-than-programmed deficit last month.
     The government aims to keep its full-year budget deficit at 202.00 bln pesos .
     (1 usd = 55.05 pesos)
     afxmanila@afxasia.com

 

Philippines economic and corporate news summary KFJ34


     BEIJING (AFX-ASIA) - A summary of Philippine economic and corporate news at 1000 GMT:
     -July unemployment rate 12.70 pct vs 12.20 in April, 11.20 year ago
     -Philippine leader vows support for new trade alliance with developing nations
     -Philippines may raise 225 mln usd from international debt market this month
     -IFC says may invest 125 mln usd in 2004 in Philippine projects
     -Balabac Resources asks SEC to approve capital restructuring plan
     -SEC threatens to fine PSE if it fails to list this year
     -Banco de Oro says may issue 100 mln usd bonds for funding needs
     -Gokongwei group denies bidding for Singapore's Robinson
     ivy.cheng@xfn.com

 

Philippines may raise 225 mln usd from international debt market this month


     MANILA (AFX-ASIA) - Finance Secretary Jose Isidro Camacho said the national government plans to return to the market as early as this month to raise its remaining 225-mln usd financing requirement for the year.
     "For the national government, we have many options available for us... We hope to be able to do this within this month and next," Camacho told reporters.
     He said the state-run National Power Corp will also have to raise 250 mln usd for its residual requirement for the year.
     Napocor is now on "advanced stages" in completing a transaction that involves a loan guarantee from US-based Overseas Private Investment Corp (OPIC), Camacho said.
     Camacho said the national government also intends to raise part of the financing required for 2004 before the end of the year on expectations that interest rates will rise towards the election season.
     He said the government is looking at pre-funding the 2004 requirements by tapping the debt market in November and December.
     "The other financing challenge for us really is our requirement for next year because of the elections coming up in May. Clearly... we can expect some volatilities during the (first half)," Camacho said.
     (1 usd = 55.05 pesos)
     afxmanila@afxasia.com

 

Philippines' Balabac Resources asks SEC to approve capital restructuring plan


     MANILA (AFX-ASIA) - Balabac Resources & Holdings Co Inc said it has filed a capital restructuring plan with the Securities and Exchange Commission.
     The company said it has sought approval for a planned quasi-reorganization in order to utilize its appraisal surplus against its capital deficit.
     Balabac has also asked for approval to lower its authorized capital stock to 73.79 mln pesos from the current 1.00 bln pesos" to generate reduction surplus so as to partially wipe off the corporation's deficit."
     At the same time, the company has sought approval for a plan to apply the firm's paid-in surplus against its capital deficit.
     In addition, the company asked the SEC for approval to increase its authorized capital stock from 73.79 mln pesos to 5.00 bln, as well as an exemption from having to register additional shares to be issued pursuant to its plan to raise its capital base.
     (1 usd = 55.00 pesos)
     cecille.yap@afxasia.com

 

IFC says may invest 125 mln usd in 2004 in Philippine projects


     MANILA (AFX-ASIA) - International Finance Corp, the World Bank's private sector arm, said it is planning to invest as much as 125 mln usd next year in various projects in the country.
     IFC country director Vipul Bhagat said the amount is 87 pct higher than this year's investment commitment for the Philippines.
     The agency is looking particularly at such areas as information technology, banking and energy, he said at a news briefing.
     Bhagat said IFC's investments in the Philippines are largely unaffected by political developments ahead of the 2004 elections.
     "We are not deterred by the political scenario (in the Philippines). Despite what you read in the papers, the political risk here is not as great as one would think," he said.
     IFC, meanwhile, has secured the central bank's approval for the extension of peso-denominated loans.
     Most companies in the Philippines still prefer to borrow in pesos, Bhagat noted.
     (1 usd = 55.00 pesos)
     afxmanila@afxasia.com

 


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