If you build it, they will come north of Manila.
The convenience of transport made possible by the improved North
Luzon Expressway (NLEx), the scenic Subic-Clark-Tarlac Expressway
(SCTEx) and the planned expansion of the Clark International Airport
(formerly Diosdado Macapagal International Airport) has been largely
responsible for jumpstarting property developments and attracting local
and foreign investments in Central Luzon northward.
For the past couple of years, local property giants have staked
their claims in this wide 21,470-square-kilometer swath of land that
encompasses seven provinces (Aurora, Bataan, Bulacan, Nueva Ecija,
Pampanga, Tarlac and Zambales). Examples are Ayala Land’s Marquee
Residences in Angeles, Pampanga; Robinsons Land’s nine housing
developments in Pampanga, Tarlac and select locations in Northern Luzon
(Ilocos Norte and Laoag City); and Ayala Land Premier’s Anvaya Cove in
Morong, Bataan.
Foreign investors have also been eyeing the Central and Northern
Luzon regions, according to property consultant CB Richard Ellis. The
firm said investors were particularly focused on the Clark and Subic
Freeport Zones, and on strategic locations in the Northern Luzon Urban
Beltway (NLUB). In the pipeline for the region are mixed-use
developments, an aeropark, a business park, hospitals, leisure tourism
estates, condominiums, golf courses, an ecopark, an international school
and a shopping arcade.
CBRE’s “The Central Luzon Market” report,
furnished to Inquirer Property last week, indicated that the NLUB has
been “transforming its landscape into a high potential investment
destination” and that this has been “brought about by infrastructure
developments that paved way to increased economic activity in Central
Luzon as businesses started expanding from Metro Manila to its
peripheries.”
The key project that the region’s
development hinges on, according to CBRE, is the Clark International
Airport, which was built in 2008 and is up for significant expansion.
CIA has been “envisioned to be the primary international gateway of the
country, with the Ninoy Aquino International Airport (Naia) already
operating at maximum capacity,” said the report.
CBRE added that CIA is expected to increase
its passenger capacity to more than 2 million annually. The government
is studying the possibility of maintaining the two main airports (CIA
and Naia) side by side, or just designating CIA as the country’s main
airport.
“Anticipating these developments, investors
are now pouring in multiple high-value investments in Clark and Subic
Freeport Zones and in other areas of the NLUB,” the report said.
CBRE cited as an example Clark’s upcoming
Global Gateway Logistics City, a 177-hectare mixed-use development
composed of a logistics park, an aeropark, a business park and a
neighborhood town center. Once completed, the development will also
feature a 150-bed tertiary hospital, which will be leased, equipped and
operated by The Medical City starting this year.
Donggwang Clark Corp., a South Korean firm,
has likewise started construction of its 304-hectare leisure tourism
estate. Its three-tower condominium complex was turned over in 2012, and
the construction of its 36-hole golf course and clubhouse has
commenced.
Other projects to be developed within the
complex include a water park, spa and gymnasium, ecopark, business
center, specialty stores and function rooms, an international school, a
golf academy and driving range, a clinic and drugstore, a hotel, casino,
a 500-unit villa complex and a shopping arcade.
The rapid property developments have
resulted in Central Luzon’s prominent economic standing. The CBRE report
said: “Central Luzon is now the third biggest contributor to the
national economy with 9.1-percent share of the GDP in 2010. In 2011, the
region posted the highest Gross Regional Domestic Product growth in the
country at 11.9 percent, higher than the National Capital Region (7.5
percent) and Calabarzon (5.6 percent).”
It added: “The labor pool is one of the
region’s core competencies. A total of 56,800 tertiary graduates were
recorded in 2012, making it the second largest source of labor next to
NCR.”
source: Philippine Daily Inquirer
Monday, May 13, 2013
Friday, May 10, 2013
Raise regulatory limit, bankers urge BSP
INDUSTRY PLAYERS want the Bangko Sentral ng
Pilipinas (BSP) to reconsider a regulatory limit on real estate
exposures following a breach last year.
There is room to raise the cap, said Bankers Association of the Philippines (BAP) President Lorenzo V. Tan, to accommodate the property market’s rapid growth without sacrificing prudential standards.
Universal, commercial and thrift banks are required to keep their real estate exposure to only 20% of their total loan portfolio. This was slightly exceeded in 2012 when their exposure was valued at P821.7 billion, 20.9% of banks’ total loans.
"My point is it’s not the quantity but the quality of the portfolio. The limit may be 15% but if the loans are sub-prime we have a bigger problem," Mr. Tan said.
Real estate exposure remains healthy, he pointed out. Vacancy levels and bad loans are down, while future supply can be met by demand. Minimum down payments and mortgage payments are other indicators that can be watched.
"When these exceed acceptable norms, then it is time to impose macroprudential measures to slow down the market," Mr. Tan said.
He warned that it would be dangerous to prematurely curb property market growth given its role in supporting the economy.
"Real estate pulls in 50 industries with it -- glass, aluminum, cement, appliances, architecture [among them] ... You [must] continue [supporting] the sector, it adds to gross domestic product growth," he added.
Metropolitan Bank & Trust Co. research head Ildemarc C. Bautista urged the central bank to raise the cap given a broadened definition of real estate exposure.
The BSP last August tightened its monitoring of real estate lending by setting new rules.
Banks were required to report not just real estate loans but also investments in securities that finance real estate activities such as property acquisition, construction and development as well as buying/selling and rental/management. Banks must also include loans for socialized and low-cost housing developments, which were previously exempted from reportorial requirements.
Counting just real estate loans, banks only extended P703.2 billion in 2012, 17% of total loans.
"The 20% cap refers to real estate loans only while the new reportorial requirements refer to overall real estate exposures. It’s natural therefore to consider a higher cap to account for the expanded coverage," Metrobank’s Mr. Bautista noted.
Central bank Governor Amando M. Tetangco, Jr. has hinted that this could be accommodated to account for the new definition as well as developments in the property market since 1997, when the limit was first introduced.
Industry players said there were no signs of overheating. While property demand is robust, they said it was structural in nature and not speculative.
Overseas remittances and outsourcing revenues continue to boost the economy, creating employment and wealth for more, BDO Unibank, Inc. chief market strategist Jonathan L. Ravelas said. BDO Capital & Investment Corp. President Eduardo V. Francisco added that lower interest rates and longer loan maturities were also making it affordable to purchase homes.
Banks, he pointed out, are better off lending for real estate, rather than offering car financing and credit card services, since "borrowers will do everything to protect their home." Housing loans are also secured by collateral, he noted.
Other consumer loans and credit card receivables proved riskiest for banks last year, with 13.04% and 11.13% of loans non-performing. Only 4.64% of auto loans went bad, while housing loans had the lowest ratio at 4.12%.
The BSP keeps a close watch on the property market since it was ground zero during the 1997 Asian financial crisis and the 2008 global economic crisis.
There is room to raise the cap, said Bankers Association of the Philippines (BAP) President Lorenzo V. Tan, to accommodate the property market’s rapid growth without sacrificing prudential standards.
Universal, commercial and thrift banks are required to keep their real estate exposure to only 20% of their total loan portfolio. This was slightly exceeded in 2012 when their exposure was valued at P821.7 billion, 20.9% of banks’ total loans.
"My point is it’s not the quantity but the quality of the portfolio. The limit may be 15% but if the loans are sub-prime we have a bigger problem," Mr. Tan said.
Real estate exposure remains healthy, he pointed out. Vacancy levels and bad loans are down, while future supply can be met by demand. Minimum down payments and mortgage payments are other indicators that can be watched.
"When these exceed acceptable norms, then it is time to impose macroprudential measures to slow down the market," Mr. Tan said.
He warned that it would be dangerous to prematurely curb property market growth given its role in supporting the economy.
"Real estate pulls in 50 industries with it -- glass, aluminum, cement, appliances, architecture [among them] ... You [must] continue [supporting] the sector, it adds to gross domestic product growth," he added.
Metropolitan Bank & Trust Co. research head Ildemarc C. Bautista urged the central bank to raise the cap given a broadened definition of real estate exposure.
The BSP last August tightened its monitoring of real estate lending by setting new rules.
Banks were required to report not just real estate loans but also investments in securities that finance real estate activities such as property acquisition, construction and development as well as buying/selling and rental/management. Banks must also include loans for socialized and low-cost housing developments, which were previously exempted from reportorial requirements.
Counting just real estate loans, banks only extended P703.2 billion in 2012, 17% of total loans.
"The 20% cap refers to real estate loans only while the new reportorial requirements refer to overall real estate exposures. It’s natural therefore to consider a higher cap to account for the expanded coverage," Metrobank’s Mr. Bautista noted.
Central bank Governor Amando M. Tetangco, Jr. has hinted that this could be accommodated to account for the new definition as well as developments in the property market since 1997, when the limit was first introduced.
Industry players said there were no signs of overheating. While property demand is robust, they said it was structural in nature and not speculative.
Overseas remittances and outsourcing revenues continue to boost the economy, creating employment and wealth for more, BDO Unibank, Inc. chief market strategist Jonathan L. Ravelas said. BDO Capital & Investment Corp. President Eduardo V. Francisco added that lower interest rates and longer loan maturities were also making it affordable to purchase homes.
Banks, he pointed out, are better off lending for real estate, rather than offering car financing and credit card services, since "borrowers will do everything to protect their home." Housing loans are also secured by collateral, he noted.
Other consumer loans and credit card receivables proved riskiest for banks last year, with 13.04% and 11.13% of loans non-performing. Only 4.64% of auto loans went bad, while housing loans had the lowest ratio at 4.12%.
The BSP keeps a close watch on the property market since it was ground zero during the 1997 Asian financial crisis and the 2008 global economic crisis.
Monday, May 6, 2013
BSP sees capital flows as threats
Although emerging economies in
Asia, including the Philippines, have coped well with capital inflows,
Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco has
reiterated the need to closely monitor the funds surge.
Capital inflows, or money from foreign investors that flows into the local stock market, government securities and other money market instruments, remain to be the biggest threat to the economy, Tetangco said.
Capital flows are being watched closely. Tetanco said they they have the tendency to raise the risks of asset price bubbles and the currency exchange rate which can also potentially undermine financial stability.
Equally important, because capital can just as freely and quickly flow out of the country, such sudden stops and abrupt reversals can threaten the real economy.
Tetangco explained that the surge of capital to emerging market economies is a major consequence of the financial crisis in the United States and the Euro Zone.
The easy monetary policy and risk appetite in advanced countries are “pushing” money out of their markets, and the favorable macroeconomic prospects of and interest rate differential with emerging market economies are “pulling” in the funds.
Analysts say that with the recent credit rating upgrades given by Standard and Poor’s and Fitch Ratings, the rate of capital inflows may increase.
Tetangco said emerging Asian countries have also used macro-prudential and capital account measures to manage capital inflows and contain the build-up of excesses in specific sectors and in the banking system.
They have employed macro-prudential policies as the first line of defense against financial stability risks, especially since the relatively shallower nature of their financial markets means that asset price bubbles could form rather quickly.
But he added that policymakers should also be cautious about the use of macroprudential measures.
“At the BSP, we look at macroprudential measures to help maintain stability in the financial system while we work on the further development of the financial market,” Tetangco said in an article in Emerging Markets, a Euromoney publication distributed during the Asian Development Bank annual meeting.
Tetangco stressed that “the nexus between macro-prudential and monetary policies should be duly considered.”
For example, Tetangco said macro-prudential restrictions on borrowing may affect expenditures in other sectors and, subsequently, economic output.
They may also weaken the transmission of monetary policy by influencing credit supply conditions.
“Monetary policy, in turn, may impinge on financial stability. Policy rates affect the cost of borrowing with subsequent impacts on how market agents decide on leverage and composition of assets and liabilities,” Tetangco said.
“Efficiency dictates that we should have a clear assignment of tools to policy objectives - monetary policy should be focused on ensuring price stability, and macro-prudential tools should be used to manage potential build-up of systemic risks.
In many instances, both policies can be mutually reinforcing, such as when they both lean against the business and financial cycles,” Tetangco explained.
Since 2010, Tetangco said that emerging market economies have been receiving more than a trillion dollars of capital flows a year, with emerging Asia getting about half.
“While the potential benefits of capital flows are well recognized, the size and volatility of these flows create risks to financial stability. They also present challenges to the conduct of monetary policy,” Tetangco said.
In most of the emerging economies, he said the amount of capital exceeds the absorptive capacity.
“Liquidity management becomes a huge hurdle to monetary authorities. Subsequently, there is a risk of build-up of financial imbalances due to rapid credit growth and rising asset prices,” he added.
“The reversal of flows is the other side of this risk. There is no doubt these may have a destabilizing impact on emerging market economies,” he said.
Tetangco stressed that the BSP has tried to make effective use of monetary policy instruments.
“We were able to reduce policy rates because of the benign inflation environment, and we have rationalized our reserve requirements. In general, Asian currencies have appreciated as a consequence of the flows. Sterilized interventions were mainly to temper volatility of currency movements, although these actions have resulted in rising costs of stabilization. In the case of the peso, the appreciation has been at 9 percent since 2009,” Tetangco said.
Although capital inflows to Asean countries including the Philippines have increased over the past few years, Bank of America Merrill Lynch (BofAML) said that the magnitude and volatility of inflows have not, however, reached previous peaks.
The US-based banking giant even cited the moves done by the Bangko Sentral ng Pilipinas (BSP) which include cutting SDA rates, banning foreign funds in special deposit accounts, and imposing a cap on banks’ non-deliverable forward holdings to temper capital inflows and ease upward pressure on the peso.
“Overall, we see further risk of more FX intervention and macro-prudential measures to contain bubble risks, while capital controls are less likely,” BofAML said.
But the BSP has said that should capital flows reach high point, possibly resulting to disruptions in asset prices and inflation, they are ready to combat these flows.
source: Malaya
Capital inflows, or money from foreign investors that flows into the local stock market, government securities and other money market instruments, remain to be the biggest threat to the economy, Tetangco said.
Capital flows are being watched closely. Tetanco said they they have the tendency to raise the risks of asset price bubbles and the currency exchange rate which can also potentially undermine financial stability.
Equally important, because capital can just as freely and quickly flow out of the country, such sudden stops and abrupt reversals can threaten the real economy.
Tetangco explained that the surge of capital to emerging market economies is a major consequence of the financial crisis in the United States and the Euro Zone.
The easy monetary policy and risk appetite in advanced countries are “pushing” money out of their markets, and the favorable macroeconomic prospects of and interest rate differential with emerging market economies are “pulling” in the funds.
Analysts say that with the recent credit rating upgrades given by Standard and Poor’s and Fitch Ratings, the rate of capital inflows may increase.
Tetangco said emerging Asian countries have also used macro-prudential and capital account measures to manage capital inflows and contain the build-up of excesses in specific sectors and in the banking system.
They have employed macro-prudential policies as the first line of defense against financial stability risks, especially since the relatively shallower nature of their financial markets means that asset price bubbles could form rather quickly.
But he added that policymakers should also be cautious about the use of macroprudential measures.
“At the BSP, we look at macroprudential measures to help maintain stability in the financial system while we work on the further development of the financial market,” Tetangco said in an article in Emerging Markets, a Euromoney publication distributed during the Asian Development Bank annual meeting.
Tetangco stressed that “the nexus between macro-prudential and monetary policies should be duly considered.”
For example, Tetangco said macro-prudential restrictions on borrowing may affect expenditures in other sectors and, subsequently, economic output.
They may also weaken the transmission of monetary policy by influencing credit supply conditions.
“Monetary policy, in turn, may impinge on financial stability. Policy rates affect the cost of borrowing with subsequent impacts on how market agents decide on leverage and composition of assets and liabilities,” Tetangco said.
“Efficiency dictates that we should have a clear assignment of tools to policy objectives - monetary policy should be focused on ensuring price stability, and macro-prudential tools should be used to manage potential build-up of systemic risks.
In many instances, both policies can be mutually reinforcing, such as when they both lean against the business and financial cycles,” Tetangco explained.
Since 2010, Tetangco said that emerging market economies have been receiving more than a trillion dollars of capital flows a year, with emerging Asia getting about half.
“While the potential benefits of capital flows are well recognized, the size and volatility of these flows create risks to financial stability. They also present challenges to the conduct of monetary policy,” Tetangco said.
In most of the emerging economies, he said the amount of capital exceeds the absorptive capacity.
“Liquidity management becomes a huge hurdle to monetary authorities. Subsequently, there is a risk of build-up of financial imbalances due to rapid credit growth and rising asset prices,” he added.
“The reversal of flows is the other side of this risk. There is no doubt these may have a destabilizing impact on emerging market economies,” he said.
Tetangco stressed that the BSP has tried to make effective use of monetary policy instruments.
“We were able to reduce policy rates because of the benign inflation environment, and we have rationalized our reserve requirements. In general, Asian currencies have appreciated as a consequence of the flows. Sterilized interventions were mainly to temper volatility of currency movements, although these actions have resulted in rising costs of stabilization. In the case of the peso, the appreciation has been at 9 percent since 2009,” Tetangco said.
Although capital inflows to Asean countries including the Philippines have increased over the past few years, Bank of America Merrill Lynch (BofAML) said that the magnitude and volatility of inflows have not, however, reached previous peaks.
The US-based banking giant even cited the moves done by the Bangko Sentral ng Pilipinas (BSP) which include cutting SDA rates, banning foreign funds in special deposit accounts, and imposing a cap on banks’ non-deliverable forward holdings to temper capital inflows and ease upward pressure on the peso.
“Overall, we see further risk of more FX intervention and macro-prudential measures to contain bubble risks, while capital controls are less likely,” BofAML said.
But the BSP has said that should capital flows reach high point, possibly resulting to disruptions in asset prices and inflation, they are ready to combat these flows.
source: Malaya
BSP considers changes to real estate financing
The Philippine central bank is considering changes to guidelines for
real estate lending to avoid an asset-price bubble in the property
market, Governor Amando Tetangco said yesterday,after data showed a rise
in activity.
Tetangco said Bangko Sentral ng Pilipinas’s (BSP) monitoring of banks’ exposure to the property market confirmed an increase in activity, although growth in real estate loans remained consistent with overall credit expansion.
Late last year, the central bank asked banks to provide more information on their real estate-related lending and investments. Data suggest that the non-performing real estate loan ratio for banks as a whole continues to be “stable.”
“Despite such front-line indicators, however, the BSP will be studying possible policy adjustments that may be warranted, both on a per institution basis, and across the system as a whole,” Tetangco told Reuters through email.
“We are not yet ready to announce the exact form of such adjustments but we will certainly do so as soon as we firm these up,” he said.
Tetangco also said the central bank was closely monitoring banks’ credit underwriting standards to ensure that “standards have not been sacrificed in order to help real estate developers move their growing inventory.”
At present, banks are allowed to lend only up to 20 percent of their total loan portfolio to the property sector, and the central bank has previously said the ceiling is being reviewed.
Banks’ exposure to the sector reached 561.6 billion pesos ($13.73 billion) at the end of June 2012, up almost 19 percent from a year ago, according to the latest central bank data.
source: Malaya
Tetangco said Bangko Sentral ng Pilipinas’s (BSP) monitoring of banks’ exposure to the property market confirmed an increase in activity, although growth in real estate loans remained consistent with overall credit expansion.
Late last year, the central bank asked banks to provide more information on their real estate-related lending and investments. Data suggest that the non-performing real estate loan ratio for banks as a whole continues to be “stable.”
“Despite such front-line indicators, however, the BSP will be studying possible policy adjustments that may be warranted, both on a per institution basis, and across the system as a whole,” Tetangco told Reuters through email.
“We are not yet ready to announce the exact form of such adjustments but we will certainly do so as soon as we firm these up,” he said.
Tetangco also said the central bank was closely monitoring banks’ credit underwriting standards to ensure that “standards have not been sacrificed in order to help real estate developers move their growing inventory.”
At present, banks are allowed to lend only up to 20 percent of their total loan portfolio to the property sector, and the central bank has previously said the ceiling is being reviewed.
Banks’ exposure to the sector reached 561.6 billion pesos ($13.73 billion) at the end of June 2012, up almost 19 percent from a year ago, according to the latest central bank data.
source: Malaya
Philippine Daily Inquirer Editorial: Investments and Ratings
International credit watchdog Standard & Poor’s Ratings Services
affirmed last week the Philippines’ investment-grade status, a month
after Fitch Ratings gave it its first investment-grade credit rating.
Malacañang spokesperson Edwin Lacierda, Finance Secretary Cesar Purisima
and Bangko Sentral ng Pilipinas Governor Amando Tetangco all credited
the good governance platform of President Aquino for the upgrade. They
said the S&P action would trigger an influx of investments that, in
turn, would fuel and sustain the economy’s stellar growth. Will it,
really?
The term “investment grade” historically referred to bonds and other debt securities that bank regulators and investors viewed as suitable investment outlets. Now, the term is broadly used to describe issuers like governments or corporations with relatively high levels of credit-worthiness and credit quality.
In its latest ratings action, S&P cited the Philippines’ increased ability to pay its foreign debts, as evidenced by its dollar reserves that currently stand at about $84 billion and are driven largely by remittances from Filipinos overseas, foreign investments in the business process outsourcing sector, and “hot money” (foreign investments mainly in the local stock market). S&P also noted the Philippine government’s declining debt burden, which it attributed to a nearly decade-long effort to improve tax collection. After peaking at 74 percent in 2004, the ratio of the government’s outstanding debt to the country’s gross domestic product declined to about 50 percent by the end of 2012 and is projected to fall further to 47 percent by yearend. “The current and previous administrations improved fiscal flexibility through restraining expenditures, reducing the share of foreign currency debt , deepening domestic capital markets and more recently through modest revenue gains,” S&P said.
But S&P did not say that foreign direct investments would start flowing to the Philippines. What exactly do credit ratings mean? Here is what S&P has to say: Credit ratings are opinions about credit risk. S&P ratings express the agency’s opinion about the ability and willingness of an issuer, in this case the Philippine government, to meet its financial obligations in full and on time. They are just one factor investors may consider in making investment decisions. Credit ratings are not guarantees of credit quality or of future credit risk.
While the forward-looking opinions of rating agencies can be of use to investors and market participants who are making long- or short-term investment and business decisions, S&P pointed out that credit ratings are not a guarantee that an investment will pay out or that it will not default. While investors may use credit ratings in making investment decisions, S&P said, its ratings are not indications of investment merit. In other words, the ratings are not buy, sell, or hold recommendations, or a measure of asset value. They speak to one aspect of an investment decision—credit quality—and, in some cases, may also address what investors can expect to recover in the event of default, it added.
“In evaluating an investment, investors should consider, in addition to credit quality, the current makeup of their portfolios, their investment strategy and time horizon, their tolerance for risk, and an estimation of the security’s relative value in comparison to other securities they might choose. By way of analogy, while reputation for dependability may be an important consideration in buying a car, it is not the sole criterion on which drivers normally base their purchase decisions,” S&P said.
Foreign investors entered the banking sector in the 1990s and the retail sector starting in 2000 when the Philippines was not investment-grade. They also recently entered the mining industry when the Philippines was not investment-grade. They did so because the government allowed them to—by removing restrictions andother barriers that were provided in the Constitution and in laws and regulations.
Purisima said something very significant when he was asked to comment on the S&P upgrade last week. In a TV interview, he said the Aquino administration was preparing measures that would open up certain sectors of the economy to foreign investors, economic activities that would not need time-consuming congressional action to amend the Constitution.
Now that—and not a ratings upgrade—will really excite investors.
The term “investment grade” historically referred to bonds and other debt securities that bank regulators and investors viewed as suitable investment outlets. Now, the term is broadly used to describe issuers like governments or corporations with relatively high levels of credit-worthiness and credit quality.
In its latest ratings action, S&P cited the Philippines’ increased ability to pay its foreign debts, as evidenced by its dollar reserves that currently stand at about $84 billion and are driven largely by remittances from Filipinos overseas, foreign investments in the business process outsourcing sector, and “hot money” (foreign investments mainly in the local stock market). S&P also noted the Philippine government’s declining debt burden, which it attributed to a nearly decade-long effort to improve tax collection. After peaking at 74 percent in 2004, the ratio of the government’s outstanding debt to the country’s gross domestic product declined to about 50 percent by the end of 2012 and is projected to fall further to 47 percent by yearend. “The current and previous administrations improved fiscal flexibility through restraining expenditures, reducing the share of foreign currency debt , deepening domestic capital markets and more recently through modest revenue gains,” S&P said.
But S&P did not say that foreign direct investments would start flowing to the Philippines. What exactly do credit ratings mean? Here is what S&P has to say: Credit ratings are opinions about credit risk. S&P ratings express the agency’s opinion about the ability and willingness of an issuer, in this case the Philippine government, to meet its financial obligations in full and on time. They are just one factor investors may consider in making investment decisions. Credit ratings are not guarantees of credit quality or of future credit risk.
While the forward-looking opinions of rating agencies can be of use to investors and market participants who are making long- or short-term investment and business decisions, S&P pointed out that credit ratings are not a guarantee that an investment will pay out or that it will not default. While investors may use credit ratings in making investment decisions, S&P said, its ratings are not indications of investment merit. In other words, the ratings are not buy, sell, or hold recommendations, or a measure of asset value. They speak to one aspect of an investment decision—credit quality—and, in some cases, may also address what investors can expect to recover in the event of default, it added.
“In evaluating an investment, investors should consider, in addition to credit quality, the current makeup of their portfolios, their investment strategy and time horizon, their tolerance for risk, and an estimation of the security’s relative value in comparison to other securities they might choose. By way of analogy, while reputation for dependability may be an important consideration in buying a car, it is not the sole criterion on which drivers normally base their purchase decisions,” S&P said.
Foreign investors entered the banking sector in the 1990s and the retail sector starting in 2000 when the Philippines was not investment-grade. They also recently entered the mining industry when the Philippines was not investment-grade. They did so because the government allowed them to—by removing restrictions andother barriers that were provided in the Constitution and in laws and regulations.
Purisima said something very significant when he was asked to comment on the S&P upgrade last week. In a TV interview, he said the Aquino administration was preparing measures that would open up certain sectors of the economy to foreign investors, economic activities that would not need time-consuming congressional action to amend the Constitution.
Now that—and not a ratings upgrade—will really excite investors.
Wednesday, August 18, 2010
STEP-BY-STEP PRC APPLICATION for REGISTRATION WITHOUT EXAMINATION
By a Licensed Real Estate Broker
FAR FROM an expected scenario, it took only 20 minutes to file and register my DTI - Real Estate License to Professional Regulatory Commission (PRC) yesterday.
The actual PRC Filing opened only yesterday (Tuesday - August 17 2010). The in-charge-PRC-employees for Real Estate Brokers Registration has just finished sorting out our DTI Records last Monday (August 16). Two (2) verification windows handle the identical records --- Window 28 of Registration Division in Main Bldg and Window H of Records Division in Annex: Customer Service Center. Not all DTI-Licensed Brokers records are present on both windows. In my case, I was directed by Window 28 to proceed to Window H to search and verify my DTI-Exam Rating. (Just an opinion, if you lost your Actual Rating Report Paper, you can have it verified on Window H. Going to DTI is like the same thing going to PRC because our DTI Records are already transferred to PRC.)
To download the PDF copy of this blog, go to the last portion and "Download Document" to your computer.
The 20-minute Registration yesterday is entirely due to (1) dedicated windows/table to Real Estate Brokers arranged by the Commission and PRB-RES; (2) Ease of Process; and, (3) the minimal turn-out of the broker-registrants. Tumagal nga lang ng konte kasi there were blank infos on my Application for Registration Without Examination Form and Permanent Examination & Registration Record Card. Admittedly, a bit excited to be among the Doctors, Engineers, Accountants, Teachers, Geologists and other Professionals who are filing their licenses. (Thank Jesus and Mama Mary, I made some pretty right choices during the 2008 REBL Exam.)
A PRC personnel asked me why it seems that of all the numerous records (they've shown me the boxes stacked in the room), the filers seems to come in "trickle".
* Told the lovely lady that some of the brokers are on a wait-and-see attitude to take CPE which is a crucial requirement.
* Others, specially the women are battling it out it in some government agencies --- justifying their real names and real marriage contracts :).
* Others, are thinking that this week's registration will have a huge turn-out kaya baka maipit sila at matagalang pumila so palipas na lang muna sila. A Broker told me that she's filing on October 10, 1010 --- 101010 --- para memorable date daw! Told her, goodluck and mag-pray sya :) ... na hindi sya maipahuli before 101010 until 011011 (Jan 2011) for practicing without license. FYI, it would take between 1 to 3 months before ma-release ang PRC License!
BAKA LANG MAKATULONG, here are some practical tips when you finally decide to come down and file your application for registration to PRC:
To download the PDF copy of this blog, go to the last portion and "Download Document" to your computer.
IMPORTANT OFFICES:
a. Office of the Asst. Secretary >>> 3F - Main Building
b. Notary Public >>> 2F - Main Building
c. Registration Division (Window 28) >>> GF - Main Buidling
d. Cashier >>> GF - Main Building (outside)
e. Records Division (Window H) >>> GF - Annex: Customer Service Center (outside)
f. Metered Documentary Stamp >>> GF - Annex: Customer Service Center (outside)
For the first timers in PRC grounds, Annex:Custtomer Service Center is immediately after the Entrance Gate. Main Building sa dulo, pagpasok.
THINGS TO DO:
1. Make sure that your APPLICATION FOR REGISTRATION WITHOUT EXAMINATION Form is completely filled-up. You need to write down your Cedula Details. Form is available in 3F-Main Building. Or you can download at http://www.ra9646.blogspot.com/.
2. Staple all zeroxed copies of requirements together with the Originals of notarized CPE Certificate; NBI Clearance; and, Surety Bond.
Another source of P20k-Surety Bond for 3years = P2,200
Call 687-5393 and Look for Nancy/Malou
@ 902 Megaplaza at the back of Robinsons Galleria
Code: Broker’s Surety Bond
Present your Cedula at pwede mo nang hintayin ang policy!
Or you can ask Nancy that your policy be mailed
para hindi ka na pumunta.
3. Indicate on top of the PERMANENT EXAMINATION & REGISTRATION RECORD Card ... "For Real Estate Broker". Card is available in 3F-Main Building.
4. Come in a very comfortable but decent attire. Take into consideration na walang elevator at 2 buildings ang babalik-balikan mo. Pwedeng tsinelas basta Havaianas flip flops :)
REGISTRATION PROCESS:
i. Documents Pre-Qualification @ 3F - Main Building > Office of the Asst Secretary. Walang upuan dito kaya tiis ka nakatayo habang bigay ang docs mo one-by-one. If you followed #2-above, mas mabilis ang pag-tingin sa docs mo. If docs are complete, you'll be given the PERMANENT EXAMINATION & REGISTRATION RECORD Card. Fill-up the Card somewhere else after ... kasi masikip sa 3F.
ii. Proceed to Registration Division (Window 28) @ GF. If your DTI Record is with them, they'll validate your Exam Rating as you've written on the Form. Otherwise, you'll have to go out to Annex: Customer Service Center and proceed to Records Division - Window H. Once verified, you'll have to return to Window 28. Also, yung picture na ididikit mo sa Card, pwede ka na hingi paste sa counter kung wala dala.
iii. Get your Documentary Stamp @ GF - Annex: Customer Service Center. Prepare ka exact P 210.00.
iv. Go to Cashier @ GF - Main Building (outside). Prepare ka exact P 900.00.
v. Go to Notary Public @ 2F - Main Building. Prepare ka exact P 50.00
vi. Lastly proceed to 3F - Main Building > Office of the Asst Secretary to submit everything ... notarized Form, registered Card, verified rating, doc stamp and paid registration. In return for everything, you'll be given a signed REGISTRATION WITHOUT EXAMINATION FOLLOW-UP SLIP. Take this home, fill-up and use for application follow-up after 3 months.
Hope you'll get lucky just like me during the whole process --- maikli pila; gwapo at magaganda ang mga kasabay na mga Brokers; mabait na mga PRC personnel; and, to top them all ... walang traffic sa kalsada!
By the way, I happened to be the last DTI-Licensed Real Estate Broker to finish my PRC application for registration yesterday. When I asked for the headcount, I was told that I am ... #23 on the list overall of the expected 21,800 broker-registrants.
To download the PDF copy of this blog, place your mouse below, right click and "Download Document" to your computer.
By a Licensed Real Estate Broker
FAR FROM an expected scenario, it took only 20 minutes to file and register my DTI - Real Estate License to Professional Regulatory Commission (PRC) yesterday.
The actual PRC Filing opened only yesterday (Tuesday - August 17 2010). The in-charge-PRC-employees for Real Estate Brokers Registration has just finished sorting out our DTI Records last Monday (August 16). Two (2) verification windows handle the identical records --- Window 28 of Registration Division in Main Bldg and Window H of Records Division in Annex: Customer Service Center. Not all DTI-Licensed Brokers records are present on both windows. In my case, I was directed by Window 28 to proceed to Window H to search and verify my DTI-Exam Rating. (Just an opinion, if you lost your Actual Rating Report Paper, you can have it verified on Window H. Going to DTI is like the same thing going to PRC because our DTI Records are already transferred to PRC.)
To download the PDF copy of this blog, go to the last portion and "Download Document" to your computer.
The 20-minute Registration yesterday is entirely due to (1) dedicated windows/table to Real Estate Brokers arranged by the Commission and PRB-RES; (2) Ease of Process; and, (3) the minimal turn-out of the broker-registrants. Tumagal nga lang ng konte kasi there were blank infos on my Application for Registration Without Examination Form and Permanent Examination & Registration Record Card. Admittedly, a bit excited to be among the Doctors, Engineers, Accountants, Teachers, Geologists and other Professionals who are filing their licenses. (Thank Jesus and Mama Mary, I made some pretty right choices during the 2008 REBL Exam.)
A PRC personnel asked me why it seems that of all the numerous records (they've shown me the boxes stacked in the room), the filers seems to come in "trickle".
* Told the lovely lady that some of the brokers are on a wait-and-see attitude to take CPE which is a crucial requirement.
* Others, specially the women are battling it out it in some government agencies --- justifying their real names and real marriage contracts :).
* Others, are thinking that this week's registration will have a huge turn-out kaya baka maipit sila at matagalang pumila so palipas na lang muna sila. A Broker told me that she's filing on October 10, 1010 --- 101010 --- para memorable date daw! Told her, goodluck and mag-pray sya :) ... na hindi sya maipahuli before 101010 until 011011 (Jan 2011) for practicing without license. FYI, it would take between 1 to 3 months before ma-release ang PRC License!
BAKA LANG MAKATULONG, here are some practical tips when you finally decide to come down and file your application for registration to PRC:
To download the PDF copy of this blog, go to the last portion and "Download Document" to your computer.
IMPORTANT OFFICES:
a. Office of the Asst. Secretary >>> 3F - Main Building
b. Notary Public >>> 2F - Main Building
c. Registration Division (Window 28) >>> GF - Main Buidling
d. Cashier >>> GF - Main Building (outside)
e. Records Division (Window H) >>> GF - Annex: Customer Service Center (outside)
f. Metered Documentary Stamp >>> GF - Annex: Customer Service Center (outside)
For the first timers in PRC grounds, Annex:Custtomer Service Center is immediately after the Entrance Gate. Main Building sa dulo, pagpasok.
THINGS TO DO:
1. Make sure that your APPLICATION FOR REGISTRATION WITHOUT EXAMINATION Form is completely filled-up. You need to write down your Cedula Details. Form is available in 3F-Main Building. Or you can download at http://www.ra9646.blogspot.com/.
2. Staple all zeroxed copies of requirements together with the Originals of notarized CPE Certificate; NBI Clearance; and, Surety Bond.
Another source of P20k-Surety Bond for 3years = P2,200
Call 687-5393 and Look for Nancy/Malou
@ 902 Megaplaza at the back of Robinsons Galleria
Code: Broker’s Surety Bond
Present your Cedula at pwede mo nang hintayin ang policy!
Or you can ask Nancy that your policy be mailed
para hindi ka na pumunta.
3. Indicate on top of the PERMANENT EXAMINATION & REGISTRATION RECORD Card ... "For Real Estate Broker". Card is available in 3F-Main Building.
4. Come in a very comfortable but decent attire. Take into consideration na walang elevator at 2 buildings ang babalik-balikan mo. Pwedeng tsinelas basta Havaianas flip flops :)
REGISTRATION PROCESS:
i. Documents Pre-Qualification @ 3F - Main Building > Office of the Asst Secretary. Walang upuan dito kaya tiis ka nakatayo habang bigay ang docs mo one-by-one. If you followed #2-above, mas mabilis ang pag-tingin sa docs mo. If docs are complete, you'll be given the PERMANENT EXAMINATION & REGISTRATION RECORD Card. Fill-up the Card somewhere else after ... kasi masikip sa 3F.
ii. Proceed to Registration Division (Window 28) @ GF. If your DTI Record is with them, they'll validate your Exam Rating as you've written on the Form. Otherwise, you'll have to go out to Annex: Customer Service Center and proceed to Records Division - Window H. Once verified, you'll have to return to Window 28. Also, yung picture na ididikit mo sa Card, pwede ka na hingi paste sa counter kung wala dala.
iii. Get your Documentary Stamp @ GF - Annex: Customer Service Center. Prepare ka exact P 210.00.
iv. Go to Cashier @ GF - Main Building (outside). Prepare ka exact P 900.00.
v. Go to Notary Public @ 2F - Main Building. Prepare ka exact P 50.00
vi. Lastly proceed to 3F - Main Building > Office of the Asst Secretary to submit everything ... notarized Form, registered Card, verified rating, doc stamp and paid registration. In return for everything, you'll be given a signed REGISTRATION WITHOUT EXAMINATION FOLLOW-UP SLIP. Take this home, fill-up and use for application follow-up after 3 months.
Hope you'll get lucky just like me during the whole process --- maikli pila; gwapo at magaganda ang mga kasabay na mga Brokers; mabait na mga PRC personnel; and, to top them all ... walang traffic sa kalsada!
By the way, I happened to be the last DTI-Licensed Real Estate Broker to finish my PRC application for registration yesterday. When I asked for the headcount, I was told that I am ... #23 on the list overall of the expected 21,800 broker-registrants.
To download the PDF copy of this blog, place your mouse below, right click and "Download Document" to your computer.
PRC to Hold REBL Exam on Feb 2011
The Professional Regulatory Board of Real Estate Service (PRB-RES) announced that the supposed Real Estate Brokers Licensure (REBL) Examination in December 05 2010 shall be re-scheduled on February 05, 2011.
The proposed schedule has been requested and will soon be calendared along with the different Board Examinations under the supervision of Philippine Regulatory Commission (PRC). PRC's 2011 Master Schedules of Board Licensure Examinations for Professionals is expcted to be published in December.
The Professional Regulatory Board of Real Estate Service (PRB-RES) announced that the supposed Real Estate Brokers Licensure (REBL) Examination in December 05 2010 shall be re-scheduled on February 05, 2011.
The proposed schedule has been requested and will soon be calendared along with the different Board Examinations under the supervision of Philippine Regulatory Commission (PRC). PRC's 2011 Master Schedules of Board Licensure Examinations for Professionals is expcted to be published in December.
Tuesday, August 10, 2010
LICENSE Application to PRC starts Monday, Aug 16
RA 9646's Implementing Rules and Regulation (IRR) published last July 24 in Philippine Daily Inquirer and Philippine Star takes effect Monday, August 09 2010.
All DTI Licensed Brokers and Passers of Real Estate Exams in previous years may now apply for PRC registration starting Monday, August 16.
For reference, you may download below the "Application for Registration w/o Examination" along with the PRC Guidelines and Requirements. These information maybe found as well to http://www.prc.gov.ph/.
To download >>> place your mouse pointer anywhere below and right-click to Download Document to your computer.
RA 9646's Implementing Rules and Regulation (IRR) published last July 24 in Philippine Daily Inquirer and Philippine Star takes effect Monday, August 09 2010.
All DTI Licensed Brokers and Passers of Real Estate Exams in previous years may now apply for PRC registration starting Monday, August 16.
For reference, you may download below the "Application for Registration w/o Examination" along with the PRC Guidelines and Requirements. These information maybe found as well to http://www.prc.gov.ph/.
To download >>> place your mouse pointer anywhere below and right-click to Download Document to your computer.
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