Finance Secretary Carlos Dominguez III has signed a new set of Revenue Regulations (RR) reducing the creditable withholding tax (CWT) on gold sales from 5 to 1 percent, a move seen to encourage small-scale miners to sell back their gold produce to the Bangko Sentral ng Pilipinas (BSP).
Read MoreThe World Bank has commended the Philippines for being among the world’s advanced economies in terms of developing viable solutions for disaster risk financing, according to the Department of Finance (DOF).
Read MoreFinance Secretary Carlos Dominguez III has cited the looming economic integration of the member-states of the Association of Southeast Asian Nations (ASEAN) plus China’s plan to invest heavily in its trading partners’ infrastructure via its Belt and Road Initiative as key factors that will shape the development of the region’s economies as they blaze a trail through this Asian Century.
Read MoreFinance Secretary Carlos Dominguez III has welcomed Malacanang’s approval of the acquisition by the Land Bank of the Philippines of the Philippine Postal Savings Bank (PPSB), which, he said, will pave the way for a financial institution that will cater not only to the country’s migrant workers, but to other overseas-based Filipinos as well.
Dominguez said expanding the coverage of the new bank—to be called Overseas Filipino Bank (OFB)—would make it “more inclusive” as it would also cover Filipinos based overseas, including immigrants to other countries.
“The Department of Finance moved quickly to help deliver on the President’s campaign promise to create a financial institution totally dedicated to catering to the needs of all overseas Filipinos–the Overseas Filipino Bank,” Dominguez said.
The OFB, he said, will become a subsidiary of LandBank, “the government-owned and -controlled bank with the most extensive branch network that will cater to the needs of the families of foreign-based Filipinos.”
The LandBank submitted the draft EO on the LandBank acquisition of the PPSB in the first week of September, way ahead of the original October deadline, Dominguez noted.
In Executive Order No. 44 issued last Sept. 28, President Duterte ordered the Philippine Postal Corporation and the Bureau of the Treasury (BTr) to transfer their PSPB shares to the LandBank at zero value.
The EO further stated that the former PPSB will be converted into the “Overseas Filipino Bank” which is a “policy bank dedicated to provide financial products and services tailored to the requirement of overseas Filipinos” and will focus on delivering “quality and efficient foreign remittance services.”
Dominguez said at a recent press briefing that one of the key features of the OFB will be a remittance service for overseas Filipino workers (OFWs) as well as a loan program for Filipinos planning to return here to start businesses or build their homes.
According to the finance chief, the LandBank and the BTr are also exploring ways of mobilizing the savings of overseas-based Filipinos for them to invest in the country’s capital markets.
“Loans for house repair, for educating the beneficiaries here, and direct remittances to schools, so those are the programs we have discussed with (Labor)Secretary Silvestre Bello III and he seems to be very happy about the service we would be providing,” Dominguez said.
Finance Secretary Carlos Dominguez III said that China’s grants for the construction of drug rehabilitation facilities and bridges in Manila indicate its “understanding and sympathy” for the challenges faced by the Philippine government as the Duterte administration moves toward achieving its goal of a truly inclusive economy.
On behalf of the government, Dominguez also thanked China for the launching of the two projects, which will provide for the construction of two drug rehabilitation facilities to be funded by a $22.95 million grant from Beijing, and another $99.27 million aid to build the Binondo-Intramuros bridge and the Estrella-Pantaleon bridge across the Pasig River in Manila.
The launching ceremonies were held at Malacanan Palace last Wednesday with President Duterte and Chinese Premier Li Keqiang witnessing the event.
“These projects indicate China’s understanding and sympathy for the challenges that confront our people as we move forward towards a truly dynamic and inclusive economy,” Dominguez said.
He also thanked the Bank of China for assisting the Philippines in facilitating its planned Panda bond issue in the Chinese market, and in organizing the Philippine Economic Briefing in Shanghai last September to present to investors the economic gains that the Philippines have made on the Duterte watch.
“On behalf of the Philippine government, we express our sincerest thanks to the Government of the People’s Republic of China for the projects we launch today. These projects, which will be purely funded by grants, will bring immediate benefits to our people,” Dominguez said at the launching ceremonies for the projects held at the Heroes Hall of Malacanan Palace.
“The rehabilitation centers for drug-dependents are significant contributions to help us win the war against abuse of illegal substances. Meanwhile, the two bridges to be built at the heart of Metro Manila will help ease the traffic congestion in the area. More than that, they symbolize the friendship we are building between our two peoples,” added Dominguez.
He said that “over the next months and years,” the government also expects to commence construction of the first batch of major infrastructure projects funded with China’s package of assistance.
“Furthermore, we thank the Bank of China (BOC) for taking the lead in helping us gain a foothold in the panda bond market. We are very happy that the BOC has come to our assistance. We also welcome the Bank’s efforts in bringing the Philippines’ growth narrative to the Chinese investors as demonstrated in the last Philippine Economic Briefing in Shanghai, and look forward to a strengthened partnership,” Dominguez said.
The Department of Finance (DOF) said the projects on the construction of the drug rehabilitation facilities and the bridges across the Pasig River will be financed purely through the Chinese Government’s grant assistance (China Aid).
China has also provided $23 million in aid for Marawi’s rehabilitation program, and donated heavy equipment worth $3 million also for the government’s reconstruction efforts in Marawi.
The agreement on providing financial aid to Marawi was among the four accords signed by Dominguez on behalf of the Philippine government on Wednesday.
Topping the list is a financing cooperation agreement signed by Dominguez and Liu Liange, president of the Export-Import Bank of China, for two of the Philippines’ flagship infrastructure projects—the Kaliwa Dam-New Centennial Water Source of the Metropolitan Waterworks and Sewerage System (MWSS) and the Chico River Pump Irrigation facility of the National Irrigation Administration (NIA)—that will cover 85 percent of the total contract amounts of the projects.
The signing ceremonies held at Palace on Wednesday afternoon were also witnessed by President Duterte and Chinese Premier Li, who was in Manila to take part in this year’s 31st Association of Southeast Asian Nations (ASEAN) Summit and Related Meetings.
Dominguez also inked a Memorandum of Understanding (MOU) with China Vice Commerce Minister and International Trade Representative Fu Ziying to “jointly identify and study” an indicative list consisting of the second basket of key infrastructure cooperation projects for possible Chinese financing.
The finance chief also signed an underwriting agreement on behalf of the Philippine government as issuer for its planned Panda bond float in the Chinese market, with the Bank of China Limited and Standard Chartered Bank (China) Limited as lead underwriters.