The Asian Development Bank (ADB) has granted a $335,000 technical assistance (TA) package to further strengthen the Philippine financial market and improve the governance of the Philippine Stock Exchange (PSE).

The TA program, which started last month, is being implemented over a 10- month period.

In particular, the TA will strengthen PSE disclosure requirements and its self-regulatory organization (SRO) functions as well as enhance the bourse’s compliance and surveillance skills. It also aims to strengthen PSE’s technical capabilities to properly regulate a self-listed exchange and other trading markets.

The scope of the TA includes an assessment of the corporate structure and governance practices of the PSE, identifying appropriate options to deal with conflicts of interest in performing self-regulatory functions as a for-profit listed company, and review and define the roles and responsibilities of the PSE board.

It likewise includes identifying appropriate steps to enhance the PSE’s profitability profile to attract both local and foreign investors and eventually diversify ownership of the exchange.

The Securities and Exchange Commission (SEC), on the other hand, needs assistance in reviewing the internal governance of the bourse to make the shares more attractive to the public.

Since it directly regulates the movement of the PSE shares once listed, the SEC needs to set new parameters for PSE to regulate the market conduct of listed companies outside its SRO status.

The ADB fund is also to be used to fund the proposed establishment of an innovative trading facility.

A $150-million loan intended for the development of the non-bank financial sector and capital markets, had already been granted by the ADB, following compliance with the conditions tied to the grant.

The SEC is being assisted by the ADB in the development of regulations for risk-based capital standards for securities broker-dealers and investment houses, taking into account international practices and the current prudential standards applicable to such institutions.

The program also involves the review of the adequacy of securities investors, protection scheme for the protection of clients’ securities and cash and or the proposed investor protections scheme for the pre-need policy holders in the event of the insolvency of a broker, dealer, underwriter registered with the SEC.

The ADB is also expected to recommend changes in coverage, size of funds, membership, adequacy of assessment, and amendments to existing SEC regulations and security codes and pre-need code, as appropriate.

The government peace panel to the resumption of the formal peace talks with the Communist Party of the Philippines-National Democratic Front (CPP-NDF) leaves for Oslo, Norway today (Sunday, Feb. 8) confident that finally, after years of negotiations, both parties would be able to achieve a breakthrough.

Carrying the hope and support of the populace led by no less than President Gloria Macapagal-Arroyo, the government panel headed by Silvestre Bello III is upbeat on the chances of ending the decades old communist insurgency problem that has taken its toll socially and economically.

"Unlike the past two years where everything was but exploratory, the two panels are going back to the peace table in formal and serious negotiations," Bello said in a pre-departure statement.

"This time, however, we are confident we can address issues and concerns. Our level of confidence that we are going to succeed comes from the willingness of both panels to speed up the process in a joint declaration signed earlier this month."

Under the joint declaration, the two panels pledged to formulate confidence-building measures to accelerate the negotiations, address the terrorist tag that the United States government placed on its military arm, the New Peoples Army (NPA), and ensure the "proper indemnification" of human rights victims during the Marcos dictatorship.

The peace talks, slated February 10-13, is also expected to thresh out socio-economic concerns like poverty, human rights, unemployment and livelihood programs.

Presidential Adviser on the Peace Process Teresita Deles is joining the panel composed of Atty. Rene Sarmiento, Education Undersecretary Jose Luis Martin Gascon and Risa Hontiveros Baraquel.

Also with the team is peace panel executive director Ma. Carla Munsayac-Villarta, Assistant Secretary Ma. Cleofe Gettie Sandoval, KBP and RPN-9 chairman Cerge Remonde, Tarlac Gov. Jose Yap, Rebecca Tanada, Maj. Ferdinand Baraquel and Oscar Bathan.

Malacaņang today welcomed a report from Washington, D.C. that President George W. Bush had asked the U.S. Congress for a significantly higher allocation of $164 million in military and economic assistance to the Philippines in 2005.

Presidential Spokesman Ignacio R. Bunye said, in a radio interview this morning, "This additional military and economic help coming from the United States only proves that the U.S. continues to give importance to Philippine-US relationship."

Bunye pointed out that the Philippines has been a "steadfast U.S. ally," particularly in the global war against terrorism.

"Malacaņang welcomes this (increased aid as a) positive development. We could say that this is the result of various bilateral meetings between President Gloria Macapagal-Arroyo and US President George W. Bush, as well as our designation as a major non-Nato ally of the US," he said.

Bunye also expressed belief that the status of major non-Nato ally, will greatly help the Philippines not only in upgrading its armed forces but also in furthering its socio-economic development.

Ambassador to Washington Albert del Rosario said that the budget profile for the Philippines covers a wide range of programs, indicating that the nature of RP-US relationship under the Macapagal-Arroyo administration has become broad, deep and diverse.

Del Rosario said that the military and economic assistance that will be given to the Philippines reaffirms the U.S.’ recognition of the Philippines’ vital role as a ‘frontline’ ally in the global war against terror.

The Philippine now ranks as the world’s fourth top recipient of U.S. foreign military financing and is the world’s second biggest beneficiary of the U.S. international military education and training (IMET) program.

The Department of Trade and Industry has insisted that Philippine exports grew by at least 18 percent last November, and did not go down by four percent as reported earlier by the National Statistics Office (NSO).

"We are looking at the $716 million export receipts reportedly recorded by the Automated Export Documentation System that was not included in the NSO report. If this is true, then our November 2003 exports would have grown (by) 18 percent," Trade and Industry Secretary Cesar Purisima said in a statement.

This gave rise to a strong possibility that the NSO export report would undergo a review to reflect the true volume of exports for November 2003 before they are officially released this month.

Economic Planning Secretary Romulo Neri has also raised doubts over the NSO report, and batted for its review and revision saying several reports from the Bureau of Customs and export processing zones were apparently not included.

Bangko Sentral ng Pilipinas Gov. Rafael Buenaventura likewise asked the NSO to review its November export figures and reconcile them with the official tally.

The DTI statement also said quoted the Semiconductor and Electronics Industry of the Philippines as saying that their export performance for November last year could not have dropped since they operated at full capacity during the period.

"We are optimistic that the review figures will reflect the true export earnings of the country and with our talk with the export industry, we projected that our revised forecast of a low of three percent and a probable of five percent export target for last year will be attained," Purisima said.

As the country’s top export earner, the semiconductor industry, which accounted for more than half of the Philippine exports, was predicted to expand by 10 percent this year.

Purisima cited as basis for DTI’s bullish predictions the upswing in world economy. "Our major markets, namely the United States and Japan, have reported resurgent economies and we expect them to buy more products from us."

"Although this is election year, our experience in the past shows that exporters are not affected by this political exercise, but by the world’s supply and demand for goods. Our goods will go to where they are needed and can compete best," the Secretary added.

To firm up the projected export growth this year, Purisima said he directed DTI offices to intensify product diversification and marketing expansion in all trading posts abroad.

He also noted that small and medium enterprises (SMEs) hold a "vital key to export growth since they contribute significantly to efficient supply chain management."