Page 4 - SEPTEMBER 2017 A ISSUE

4 www.hello-philippines.com BUSINESS & FINANCE September 2017 – No. 17 • UK & Europe Edition

BSP UNFAZED BY CURRENT ACCOUNT DEFICIT
MANILA – The Philippines will If realized, this would turn around if the gap stretches to an equivalent of
maintain a modest current account money flows from goods and services Bangko Sentral ng Pilipinas from the $601-million surplus actually 3-4% of GDP.
deficit that is unlikely to hit alarming trade. A deficit means more funds headquarters in Manila. (file photo) recorded in 2016.
levels, with the component trade gap from goods and service trading left the “It’s probably just because the
expected to “correct” in the next few country than entered in a particular The central bank expects the full- Mr. Espenilla dismissed concerns mindset is that, for quite some time,
years despite imports’ surge, officials of period. year balance to settle at a $600-million about the increasing trade gap, stressing we had been experiencing the current
the Bangko Sentral ng Pilipinas (BSP) deficit equivalent to 0.2% of GDP— that it was natural for a developing account surplus, so the shift to a current
said. The Philippines posted a the biggest in 15 years—amid economy to spend more in order to account deficit is something which is
$318-million current account deficit in heavy importation of raw materials “accelerate investment ambitions.” quite new,” Mr. Dakila said during a
BSP Governor Nestor A. Espenilla, the first quarter, equivalent to 0.4% of and capital goods as the Philippine roundtable discussion with reporters.
Jr. allayed persistent concerns about GDP. government kicks off its ambitious ‘We shouldn’t be in trouble.’ “What’s
a ballooning deficit in the country’s P8.44-trillion five-year infrastructure behind it is ramping up of investments. Analysts have said that the
external payments position, saying that spending program. These investments, properly executed, Philippines’ vanishing current account
such worries should not weigh on the should enlarge our productive capacity surplus has significantly weighed on
Philippine economy. and our ability to export and produce sentiment towards the local currency,
goods and services,” the BSP chief said. adding to external developments and
“[W]hat we need to take a look geopolitical tensions that turn investors
at, as it is, we are not talking about a “So long as these investments are away from emerging-market currencies
blow-away current account deficit. The good investments, we shouldn’t be in and towards the dollar as safe haven.
current account deficit today is much trouble. The situation should remain
lower than one percent of GDP (gross very manageable,” Mr. Espenilla The peso traded at 11-year-lows
domestic product), and we have no assured, adding that the current earlier this month to settle at the P51
intention to see the current account account should correct itself over time. level versus the greenback. Year-to-date,
deficit go higher than one percent of the local unit has depreciated by 2.74%.
GDP,” Mr. Espenilla said at a forum BSP Managing Director Francisco
hosted by the Economic Journalists G. Dakila, Jr. said separately that the n Melissa Luz T. Lopez, BusinessWorld | August
Association of the Philippines on Friday. current account would be worrisome
28, 2017, 3:45 PM
The current account measures
Cement is mixed in file photo
from businessworldonline

Business group to convert chicken
dung into organic fertilizer
CITY of San Fernando – Bird allowing them to be ferried, untreated, nearby areas in Central Luzon.

manure collected in areas where avian to the vegetable farms of Luzon. Soliman said the initial operations

influenza (bird flu) virus broke out According to businessman Jojo Soliman would be dedicated for the

could be processed and converted into of the Sta. Monica Farm Products production of organic fertilizers. He

organic fertilizer aside from being a Corporation, a processing plant is being said the company will be venturing

good source of green energy, according constructed on a 8,000-square meter into green energy in due time. 3ttoo loruecnsadolelvrcegeomroepwnrot dwumcitahtkeirnimssppewocrilttlieionrngs

to a businessman seeking to resolve land in Bacolor, Pampanga. It is seen to “Actually we have two options:

concerns that allowing the transport of help ease the burden of poultry owners first is the processing plant of chicken

chicken dung to other parts of Luzon, in transporting bird manure from bird dung, and second is building a

where farmers have been using them, flu-stricken areas in Pampanga and furnace. But because of the urgency MANILA – Three cement position until there is unanimity,” the
manufacturers are willing to undergo CeMAP chief noted.
might further spread the contagion. Nueva Ecija. of the situation we disregarded the the same inspection procedures
required for importers to pacify Moreover, the three cement
Government and health authorities The company, Soliman said, adopted production of energy renewable a running feud between cement manufacturers highlighted the need for
producers and importers. local testing, and not simply relying on
earlier said that chicken dung might a composting technology from German energy” for the meantime, said pre-shipment quality inspection (PSQI).
In a letter to Department of
be contaminated of the virus, and and Columbian industries. He said an Soliman. Trade and Industry (DTI) Secretary They noted that the quality of
Ramon Lopez, Cement Manufacturers imported cement could deteriorate due
could cause the spread of bird flu if not initial investment of P20 million was It would take one week to convert Association of the Philippines (CeMAP) to exposure to moisture, sea water, and
president Ernesto Ordoñez reiterated rain during transport.
properly handled. infused by the group for construction the chicken dung into organic the position of Cement Philippines,
Inc. (Taiheiyo), CEMEX Holdings The three companies said the
Agriculture Secretary Manny Piñol and operation of the processing plant. fertilizer using this process, said Philippines, Inc. (Cemex), and Cement sampling and testing shall be conducted
Group (Republic) to waive their on a per shipment, per Bill of Lading, per
earlier halted the transport of bird Soliman said the company initially Soliman on the sideline of President exemptions from inspection procedures type, per brands basis in the Philippines,
despite the different treatment for local either from the port of entry area,
manure, including those of ducks and set up boilers that have the capacity Duterte’s visit to Pampanga on manufacturers under DTI’s Department importers’ declared warehouse, or silo.
Administrative Orders 17-02 and 17-
quails, to other places to prevent spread of processing 50,000 metric tons of Monday. 05. They added that the test results
should ensure conformity with
of the fowl disease. “Chicken dung chicken dung. In his speech during the “[Instead], they are willing to go Philippine National Standards prior to
through the same import procedures the cement’s release in the local market.
is being sold in vegetable farms for “Chicken dung to be collected in distribution of financial assistance to that the traders undergo. This is to
contribute harmony in promoting “I emphasize here that though they
fertilizer use.” poultry farms will be processed in affected poultry raisers in Pampanga consumer welfare,” Ordoñez said. are allowed to be treated differently
because of their lower risk category
There may be a safe and efficient our plant and converted into organic and Nueva Ecija, Piñol encourage However, he clarified that the consistent with the World Trade
decision of the three cement producers Organization (WTO) rules, and even
way to make use of the bird dung, fertilizer for distribution to different local farmers to venture into did not represent an “official position” if it is the DTI position, signed by you
of CeMAP. in DAO 17-02 and DAO 17-05 which
however, while concerns linger over vegetable farms in Pampanga and vegetable farming by constructing is completely justified, the three
“Holcim was not able to give companies are very willing to forego
President Duterte shakes hands with San Luis, Pampanga Mayor green houses in idle lands. a position in time for the Aug. 18 this justified treatment,” Ordoñez told
Venancio Macapagal during the turnover of financial assistance to Pinol said a memorandum of deadline. CeMAP cannot take an official Lopez. n Kris Crismundo, PNA | August 26,
poultry raisers affected by the avian influenza virus that hit the town
recently. Looking on is Agriculture Secretary Manny Piñol. Also in agreement will be signed between 2017, 9:23 PM
Photo are Pampanga Governor Lilia Pineda and Health Secretary the Columbian-German firms,
Paulyn Ubial. Photo by Jess Malabanan, InterAksyon

Department of Agriculture and local

governments for the establishment

and operations of a composting plant.

Soliman said the company chose

Bacolor town because of its proximity

to affected areas in Pampanga, and to

contain the transport of chicken dung

to other places. “The secretary does

not want the manure to go out of

Pampanga. n Jess Malabanan, InterAksyon

| August 28, 2017, 4:37 PM