01 FEBRUARY 2004

The Bangko Sentral ng Pilipinas (BSP) has approved the merger of three Mindanao banks, paving the way for the formation of the biggest rural bank in the Philippines.

The BSP’s Supervision and Examination Department said that the Monetary Board, through Resolution No.1865, has given the greenlight for consolidating the Network Rural Bank (Davao del Sur) Inc., the Rural Bank of Panabo (Davao del Norte) Inc., and the Provident Rural Bank of Cotabato (North Cotabato) Inc. The single bank to emerge shall be called One Network Rural Bank, Inc.

One Network Rural Bank, Inc. will be allowed to directly participate in the Philippine Clearing House Corporation (PCHC) and act as a money changer for foreign exchange, provided it will open a foreign currency facility with commercial banks.

One Network Rural Bank Inc. will be the second bank to be granted permission by the BSP to also operate as a money changer, and the first to actually operate as such.

The consolidated rural bank will also be allowed to open a foreign currency deposit unit (FCDU) as long as it raises its paid-up capital by P650 million.

One Network Rural Bank president Alex V. Buenaventura said that dealing directly with PCHC will expedite clearing of its own checking account.

"It also unlocks two-thirds of the reserve deposit bloc with the commercial bank that serves as our clearing bank. That would thus allow that amount to be relocated for lending," he said.

The BSP has allowed the consolidated bank to open six additional regular branches in areas where there are only three existing branches or offices of other banks.

It still has two unused branch licenses.

But the BSP clarified that it has to open an office in Metro Manila solely for the purpose of serving as headquarters for its designated clearing representative to deliver the received checks/supporting statements and other documents relative to clearing operations.

Buenaventura said that the consolidation of the three banks would enable it to give better service to Filipinos residing and doing business in the countryside.

The new bank would also facilitate the transfer of funds used by emerging small and medium enterprises (SMEs).

Buenaventura added that this development would help greatly to spur development and economic growth in the countryside.

TOP

Malacaņang expressed confidence today that Congress will pass the proposed national budget for 2004 before the adjournment of its 12^th regular session on February 6, 2004.

Presidential Spokesman Ignacio R. Bunye said that administration officials "believe in the maturity" of members of the Senate and the House of Representatives.

"They will attend to this very pressing need, at ‘yan ay pagpasa ng 2004 budget," Bunye said in a radio interview this morning.

He said that President Gloria Macapagal-Arroyo "prefers" to have an appropriations measure approved by both houses of Congress. But, if despite all efforts Congress fails to enact the budget, he added that "alam naman natin… merong mga batas na umiiral kung ano ang dapat ipatupad (we know that there are appropriate laws that can be implemented)."

The proposed General Appropriations Act of 2004 has been pending in the Senate-House bicameral committee, where conflicting provisions of the budgetary measure are being ironed out.

In his interview, aired on RMN Networks, Bunye sidetracked a question as to whether some negotiation on reconciliation was going on between the camp of Presidential Macapagal-Arroyo and that of opposition presidential candidate Raul Roco.

"Ang ating Pangulo ay talagang tumatakbo siya on the basis of her performance, kung ano iyong nagawa niya sa ating ekonomiya at kung ano ‘yong mga programa na isinagawa niya para iangat ‘yong antas ng kabuhayan at ating mga kababayan (Our President is running for office on the basis of her performance, what she has done for our economy and what programs she has carried out to uplift the living conditions of our countrymen)," he said.

"On that basis," he added, "she is confident that she will get the blessing from the people. But, alam mo naman sa politics, anything is possible."

TOP

President Gloria Macapagal-Arroyo’s criteria for selecting the two new members of the Commission on Elections (COMELEC) are competence, integrity and capability to properly enforce the election laws.

Presidential Spokesman Ignacio R. Bunye cited, in an interview with RMN Networks this morning, the qualities President Macapagal-Arroyo is looking for in the nominees for the COMELEC posts to be vacant starting tomorrow (February 2}.

The vacancies will be created with the retirement on Monday of Commissioners Luviminda Tangcangco and Ralph Lantion

Bunye denied that the President had already named the successors of Commissioners Tangcangco and Lantion. "Masyadong adelantado ‘yong nagbabalita na mero ng appointed na commissioners sa COMELEC (That news is far too advanced)," he said.

"Makakasiguro ‘yong ating mga kababayan na ang mga susunod na commissioners na hahalili doon sa mga magreretiro ay pipiliin base sa kanilang competence, sa kanilang integridad at sa kanilang kakayahan na ipatupad nang maayos ‘yong election laws (We assure the people that the commissioners who will replace the retirees, shall be selected based on their competence, integrity and capability to enforce the election laws properly)," he said.

TOP

Malacaņang today gave Vice President Teofisto Guingona a clean bill of health in connection with his alleged complicity in efforts to destabilize the government.

"Unang-una, palagay ko ang ating Vice President ay hindi makikihalo sa ganitong kaguluhan. Alam niya kung ano ang nararapat at kung ano ang magpapanatili ng katatagan ng ating bansa (First of all, I think our Vice President will not get involve in this kind of mess. He knows what is proper and what is needed to maintain national stability)," Presidential Spokesman Ignacio Bunye said in a radio interview.

The radio host asked Bunye about Malacaņang’s reaction to earlier reports that investigators were looking at the possible involvement of Guingona in a destabilization plot attributed to a group of junior military officers called "Kawal Pilipino."

Bunye lamented that certain quarters were apparently dragging the Vice President into the controversy.

The presidential aide said earlier that the government has a tight case against those who are involved in the plot.

"People who are out to destabilize the government should get the message clear: we will not hesitate to go after them with the full force of the law and justice," Bunye stressed.

TOP