Latebreakers.

Title

Latebreakers.

Language

English

Source

Business Day Volume XIV (No. 132) August 29, 1980

Year

1980

Subject

Current events.

Rights

In Copyright - Educational Use Permitted

Fulltext

Trade deficit now seen at $1.78B Rural bankers alarmed over palay underpricing ‘Farmers unable to pay loans’ Rural bankers have expressed alarm over the reported activities of traders who underprice palay sold to them by the farmers. Eugenio S. Perez, Jr., president of the Rural Bankers Association of the Philippines, said that in Panay island, palay is selling at half the Pl.40 per kilo buying PCMP firms • Loan from Germany A loan agreement of DM33 mil lion (Pl39 million) between the Federal Democratic Republic of Germany and the Philippine govern ment will be signed this morning at the Ministry of Foreign Affaire, MFA’ officials said. The loan will be allocated to the following gov ernment projects: Imelda Settle ment Project in Southern Leyte; Dagat-dagatan Resettlement Pro ject; procurement of special equip ment for the National Cartographic and Photogrammetric Center; and procurement of two container cranes for the Manila International Port. • No oil strike The oil reserve expected ■ to be within the Batas 1 structure in offshore northwest Palawan has “migrated” and Philippines Cities Service, Inc. (PCSI) has decided to temporarily plug the wildcat oil well, the Ministry of Energy an nounced yesterday. Based on a series of drill stem tests (DSTs) and visual examinations of core samples gathered from the well’s borehole, PCSI concluded that the oil once trapped within the Bata* 1 structure Is no longer there and that the initial oil shows were merely "residuals." • Senegal buying RP rice Senegal wants to Import Philippine rice and other products, and has proposed negotiation of a bilateral Hade agreement. A government buying mission from the West African nation arrived Wednesday afternoon for rounds of talks with local officials from Aug. 28 to 31. Headed by Director Amador Moustapha Tall of the Senegalese Ministry of Commerce, the sixman mission visited Thailand before coming to the Philippines. Trade consultations with Philippine gov ernment officials are going on. price of the National Grains Authority. These depressed pri ces have so shrunk the income of fanners that they are unable to pay their loans. Perez said that with the increase in the target area of the new phase of Masagana-99, the prices would go down further. He suggested that the government enforce a floor price for palay and make the National Grains Authority buy more its present share of 18% of the total rice production of the country. urged to buy more parts made locally The Consolidated Automotive Parts Producers Association Inc. (CAPPA) has proposed that the car firms participating in the Pro gressive Car Manufacturing Program (PCMP) be required to acquire some 40 parts and components from local suppliers. CAPPA said some of these parts are already being used by PCMP participants. Under the present guidelines, PCMP participants are required to source locally only two items — tires and batteries. Page 8 The Stock Market Trading on mlnei provided the only excitement at the exchanges yester day but the Issues lost steam at the homestretch. Activity In the oil sector was light. None of the Issues posted gains while losers gave up small points. Combined peso turn over at P8.8 million dropped by almost 30% from Wednesday’s P12.1 million. Psge 16 The country’s trade deficit may hit $1,784 million this year, a rise of 15.8% over 1979, according to a report from the Ministry of Trade. The report added that export receipts may grow by only 31%, a slower rate than last year’s 34%, while imports would grow by 27%. The ministry attributed the decline in growth to the projected slower performance of nontraditional exports - 30% this year (to $2,769 mil lion) as against 42% in 1979. Oil bill increases were likewise expected to swell the trade gap, according to the ministry. MM jeepney men now want higher fares Metro Manila jeepney operators and drivers, crumbling, under the pressure of high fuel prices, have asked the Board of Transportation to increase their fares. The Buklod ng Manggagawa sa Sasakyan, head ed by Ceferino P. Ginete, is asking for an increase in the basic fare of from 60 centavos to 70 centavos for the first five kilometers. It is also asking for a half-centavo raise in the per kilometer rate, from 11.5 to 16.5 centavos per kilo meter. Corporate Developments BPI-Comtrust merger nearly covered by capital gains tax The Batasang Pambansa committee on finance yesterday debated on whether the exemption from the capital gains tax for banks merging or consolidating in order to obtain a license for universal banking, would be made effective upon approval of the relevant Cabinet bill. A timing like that would penalize banks that have already merged. It was a close shave for the Bank of the Philippine Islands which recently acquired the Commercial Bank and Trust Co. For tunately for BPI, its merger is not yet consummated. Page 7 Tanduay eyes export to offset slump in sales on local market Tanduay Distillery, Inc., suffering a slump in sales, is aiming for a share of the United States rum market. It will ship an initial 2,000 cases next month to Texas and California, from where It hopes to expand to other states. Page 7 Delta Motor's Mini-Cruiser, Tamaraw to be sold in Egypt Delta Motor Corp, reported signing an agreement in principle for the assembly and distribution of its Delta Mini-Cruiser and Tamaraw in Egypt. At least 3,000 units worth a total of $15 million are In the order. « — PSC to raise price ceilings in provinces The Price Stabilization Council (PSC) will adjust the price ceilings for essential commodities in the provinces shortly. The PSC said the adjustments will be raised de pending on the cost of transport from Manila, where most of the commodities come from. The prices of rice, corn, sugar, milk, cooking oil and school supplies will thus vary according to the nearness of the place to Manila. Only the prices of canned fish have not yet been computed, the PSC said. Sugar workers hold convention Sugar mill and .plantation workers start a two-day national unification convention tomorrow in Bacolod City. Besides putting 560,000 plantation workers and 30,000 mill workers together under one union, convention organizers said they will' also discuss ways to force the government to lift their employers’ exemption from the various wage decrees. Page 8 INSIDE SECTION II DISCOUNT RATE: MITI Minister Tana ka lays the .75% cut In Bank of Japan discount rata Is too small. .... .Page 9 MORATORIUM: The US General Ac counting Office urges a moratorium on foreign acquisitions of US banks with assets of $100 million or more . . Page 9 TRADE DEFICIT: The US trade deficit dropped In July to $1.85 billion from June's $2.28 billion, mainly because of a 17% drop In oil Imports...............Page 9 UK UNEMPLOYMENT: The total of unemployed in Britain this month topped 2 million for the first time slnca World War II. . ............................Page 9 OIL STOCKPILE: Japan plans to In crease Its oil stockpile to 30 million kiloliters.........................................Page 10 MONETARY MOVEMENTS: Gold closed higher at $634 an ounce In Lon don, firm In Hong Kong at $627. The US dollar was little changed in New York but down in London end Tokyo. Page 10 COMMODITY FUTURES: Prices of selected commodity futures close mixed .................................................. Page 11 REGULAR FEATURES Tax Talk.................... . Page 2 Business & the Law . . . .........2 World Situationer .... . . . . .4 Currency Conversion Table. . 10 Forex, Interbank Rate. ... .10 Monetary Movements. . .. . .10 Market Reports........... ... .11 Shipping & Trade .... ....12 Off Hours ............... .. . .14 Psge 7

content

Loan from Germany--No oil strike--Senegal buying RP rice.

pages

1

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