Thursday, August 29, 2024

Coronavirus Lockdown: Maturing COVID Loans, Be Inspired By Heroes, and More!

More news about how the COVID-19 pandemic in the Philippines is being handled by the public and the government. 

Maturing loans taken out during the pandemic are coming back to bite in a big way. And it turns out some of those loans were not explicitly for COVID expenses. 

COVID drove the Philippine economy to a standstill in 2020, killing hundreds of people and opening the doors to government borrowings that reached billions of pesos and are maturing soon to add to the country’s record-breaking debt burden.

This eventually brought the government’s outstanding debt to a record-high of P12.79 trillion in mid-2022, the end of the presidency of Rodrigo Duterte and the start of Ferdinand Marcos Jr.’s.

But even with the end of the pandemic, the country’s obligations keep on swelling, with the outlook set at P16.06 trillion in 2024 and P17.35 trillion in 2025 since most of the COVID-19 loans are still being settled.

The Department of Budget and Management (DBM) explained that the government relied on borrowings when COVID-19 hit. The debt level, however, is expected to go down once it reaches its peak.

But while the government somehow pointed out that it can settle its obligations, especially with the economy “growing even stronger,” Filipinos still ask: Where did all the resources go?

As of May 2022, the Department of Finance (DOF) said that a fiscal consolidation and resource mobilization plan is required to reverse in 10 years the P3.2 trillion debt that was incurred because of the pandemic.

But based on its own data in the first month of 2022, the DOF said that $25.8 billion, or P1.46 trillion, was “secured” for COVID-19 response, including the grant and loan financing that was received for some COVID-19 programs.

But as pointed out by the think tank Ibon Foundation, the $25.74 billion, or P1.46 trillion, which the government said was borrowed to address the COVID-19 crisis, was not entirely spent for pandemic response:

  • 23 percent, or $5.64 billion: “Explicitly for COVID-19 response”
  • 26 percent, or $13.28 billion: “Not necessarily for COVID-19 response”
  • 26 percent, or $6.82 billion: “Self-evidently not for COVID-19 response even if reported as such”

Sonny Africa, an economist and executive director of Ibon Foundation, told INQUIRER.net that the government “borrowing[s] was not primarily for COVID-19 response.”

“It would be more accurate to say that the government incurred so much debt […] to make up for the revenue contraction due to the protracted lockdowns and to be able to continue payments in infrastructure and for debt service,” he said.

The problem, however, is not only whether the loans were spent on COVID-19 response because, as pointed out in a report published by the United Nations, the lack of transparency was seriously concerning, too.

The report “COVID-19, Lies and Statistics: Corruption and the Pandemic,” first published on the Science and Development Network, stated that “from Brazil to the Philippines,” the crisis was responded to by “secretive governments.”

“Clandestine contracts for medical goods and services have become the norm in many countries,” it said while stressing the “lack of transparency,” especially in procurements.

Since 2021, the Philippine Senate has called on the government to provide a complete accounting of the billions worth of resources for the procurement of COVID-19 vaccines.

Lack of transparency is only half the problem. The other half is President Duterte shut down the economy for no good reason and the Philippines will be paying the price for years to come. 

Tourism is increasing but international arrivals have not yet reached pre-pandemic levels. 

https://news.abs-cbn.com/business/2024/8/20/ph-s-international-arrivals-yet-to-reach-pre-pandemic-levels-2225

International tourist arrivals in the Philippines have yet to reach pre-COVID-19 pandemic levels, but visitor receipts show a 116 percent recovery, according to the Department of Tourism.

During Tuesday’s deliberations of the House Committee on Appropriations on the proposed 2025 budget for the DOT, Tourism Secretary Christina Frasco said over 5.45 million foreign tourists visited the country in 2023. 

The agency is targeting at least 7.7 million international tourist arrivals this year, just half a million shy of the country’s pre-pandemic record high of 8.3 million in 2019.

But the DOT said that other metrics of tourism performance have exceeded pre-pandemic levels by a lot. Visitor receipts, for instance, more than doubled compared to 2019, while total employment in tourism industries are up 88% last year compared to four years ago.

“Since the onset of the pandemic, global world tourism bodies and nations have expanded their view of measuring tourism performance to include most importantly visitor receipts. The money that goes into the coffers of the nation, and the pockets of our local stakeholders, because this is what keeps the economy running,” Frasco told lawmakers.

“In that regard, I am pleased to announce that we have accomplished an over 116 percent recovery of our visitor receipts, as well as have ranked number 1 in southeast Asia as far as our domestic tourism performance… contributing the highest in terms of GDP contributions among all ASEAN nations,” she added.

“As far as tourism employment is concerned, we have since employed 6.21 million Filipinos and the latest number as of April this year is pegged at over 16 million Filipinos. If we are to judge tourism industry performance by the new metrics that’s being used by the Philippine Statistics Authority, as far as tourism employment is concerned, we have also more than recovered our numbers,” the DOT Chief added.

“Not only must we look at quantity, but quality and to ensure the sustainable development of our tourism destinations. We continue to chase after the numbers nonetheless,” Frasco noted.

The proposed 2025 budget for the DOT and its attached agencies under the National Expenditure Program is at P3.39 billion, lower by 2.8 percent than its current budget of P3.49 billion, and less than the pre-pandemic budget of around P4 billion.

Several lawmakers have expressed support to augment DOT’s budget next year, citing the sector’s contribution to the country’s economy.

“Restore the budget of DOT to pre-pandemic levels, at the very least P4 billion,” Lanao del Norte 1st District Representative Mohamad Khalid Dimaporo urged his colleagues.

But since metrics are changing tourism has seen a 116% recovery. How about that? 

According to studies, since the pandemic Filipinos have been focused on home improvements. 

https://www.sunstar.com.ph/cebu/home-upgrades-fuel-growth-for-appliances

A MANUFACTURER of artisanal home appliance solutions is banking on the continued healthy spending of Filipino consumers on home improvements to grow its business. 

Yven Gerard Almalel, brand manager at Concepcion Midea Inc. Philippines (CIMP), said that even after the Covid-19 pandemic, Filipinos continue to invest in appliances, driven by increased purchasing power and their inherent love for cooking and hosting large gatherings. 

“There have been studies that since the pandemic, consumers have focused on home improvements, making this a great opportunity for introducing advanced kitchen appliances like the gas range,” he said. 

CIMP is the distributor of Toshiba Lifestyle products.

During the lockdowns, many people turned to home renovations, while others took up new skills like cooking to stay occupied and productive.

Funny how the lockdowns simultaneously made everyone poorer and caused them to spend more money on home improvements. 

The Vice Governor of Abra has been suspended for locking down the hospital at the height of the pandemic. 


https://www.thestar.com.my/aseanplus/aseanplus-news/2024/08/25/philippines039-abra-vice-governor-bernos-suspended-over-hospital-closure-during-pandemic

Malacanang confirmed on Saturday (Aug 24) that it has ordered the suspension of Abra Vice Governor Maria Jocelyn Valera-Bernos for locking down a hospital during the height of the Covid-19 pandemic in 2020, when she served as the province’s governor.

Executive Secretary Lucas Bersamin confirmed the suspension to reporters.

When asked if the order was confirmed, Bersamin simply replied, “Yes.”

In a statement issued on August 22, Valera-Bernos condemned the 18-month suspension imposed by the Office of the Deputy Executive Secretary for Legal Affairs under the Office of the President.

“I was the governor of the province at that time when Seares Hospital filed a complaint at the Office of the Ombudsman against me and other provincial officials for a decision I made for the sole purpose of ensuring the safety of all Abrenos from the threats of Covid-19,” she said in the statement.

“It was never aimed to target any specific hospital, but a necessary and immediate action to mitigate the probable spread of the virus when, at that time, no known control and vaccine were available,” she added.

She pointed out that the Office of the Ombudsman already dismissed the complaint against her.

“On May 4, 2022, the Office of the Ombudsman dismissed the complaint and ruled that my actions were done in good faith and within the bounds of my duty as a public servant during a state of calamity,” Valera-Bernos said.

The official also called the order a “politically-motivated character and reputation attacks.”

Of course she says it was necessary. Everything was necessary in 2020. Right? 

On National Heroes Day young Filipinos are being told to be inspired by healthcare workers who braved the COVID-19 pandemic. 

https://philstar.com/the-freeman/cebu-news/2024/08/27/2380885/youth-urged-be-inspired-heroes

Believing that today’s youths are still the “hope and promise of the nation,” acting Cebu City Mayor Raymond Alvin Garcia has encouraged the youths to draw inspiration from the country’s pool of national heroes.

“In our numerous heroes, you will find on display wonderful qualities such as bravery, selflessness, patriotism, nationalism and deep love for country. Truly, they are role models worth imitating, and their examples followed,” Garcia said as the country marked the National Heroes Day yesterday.

He also reminded the youth that they need not dive deep into the history books to find heroes saying that one can easily find them today as some are also living among the people.

Among them are the medical frontliners who bravely fought the unseen enemy at the height of the COVID-19 pandemic.

Garcia honored the medical frontliners whom he said sacrificed their own safety to help combat the virus.

“Who risk their own health and safety to take care the rest of us, especially those who were at the forefront in the battle against COVID-19,” he said.

Garcia also took note of the teachers who sacrifice much of their time and efforts to mold the nation’s youth.

“We must also not forget our dear OFWs, who must bear the difficulties of living in another land and far away from their homes just so they can provide for their families and also contribute to our nation’s economy,” he said.

Will these brave fighters be remembered decades from now?

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