BIZ BUZZ: BSP versus the banks
For the Bangko Sentral ng Pilipinas (BSP) and some bankers, it looks like the gloves are off because of the former’s recent moves to temper the volatility of the peso.
Biz Buzz hears that ranking officials of the financial regulator recently summoned to a meeting some of the top treasury people from the banks that had been most active in the foreign exchange (FX) market in recent weeks.
During the meeting, the bankers were told bluntly that it was their desire for higher year-end bonuses that was putting additional pressure on the exchange rate. One ranking central bank official told them to temper their greed because the depreciating peso was affecting the poorest of the poor by aggravating the already high inflation rate.
Well and good, but here’s the thing: as far as everyone knows, the local foreign exchange market is still operating under a deregulated environment.
And, to date, the BSP has released no memorandum or circular telling the banks to lay off the FX market. The crackdown is being made solely on the verbal say-so of the central bank’s treasury department, we hear.
Word on the street is that the BSP doesn’t want to be seen as having walked back on its market deregulation policies. But it is also worried that further peso weakness will have an impact on the Philippines’ credit rating in the near term.
In the meantime, bank employees servicing legitimate dollar needs of their clients are having to work late into the night to satisfy the BSP’s new documentation requirements, with no clearcut word on when this imposition will end.
It looks like a showdown is looming. Abangan!
—Daxim L. Lucas
No eviction . . . yet
With a Sword of Damocles hanging over their heads, 19 homeowners at Vista Real Classica subdivision in Quezon City have been told by their property developer Sta. Lucia Realty that eviction is “highly unlikely” since they had purchased the property from the latter in good faith and for value.
To recall, these homeowners who now call themselves the “Robles 19” are caught in the crossfire between Sta. Lucia and 8990 Holdings, which are both claiming the land on which their homes have stood for decades. The legal battle has been raging for decades, too.
8990 had obtained a writ of execution to implement the Court of Appeals ruling in April 2019 that Evangeline Puzon (who sold the property to 8990) held a “better right of possession,” while ordering Sta. Lucia to immediately vacate the premises. Sta. Lucia says, however, that the battle isn’t over.
In a Sept. 9 letter addressed to homeowners, Sta. Lucia, which is led by businessman Exequiel Robles, assured them that the property developer was exerting all efforts legally possible to address the case and protect its homebuyers.
“We wish to inform you that Sta. Lucia has a pending petition with the Supreme Court docketed as G.R No. 250747 entitled Sta. Lucia vs. Puzon, represented by 8990. Said petition is still pending and thus, the RTC (regional trial court) cannot legally issue a writ of execution to implement a decision which is not yet final and executory,” Abelardo Albis Jr., external counsel of Sta. Lucia Realty, said in the letter.
Albis said Sta. Lucia was willing to shoulder the legal expenses in case the homeowners association decides to go to court, provided that every legal move was coordinated with Sta. Lucia. Security assistance was likewise offered.
“Any move for replacement of your property shall be dealt in due time,” the lawyer said.
Some homeowners have floated the idea of replacing their problematic homes with those located in Sta. Lucia’s other developments, but it seems that the latter would like to exhaust all legal options first.
For its part, 8990 Housing Development Corp. through head legal counsel Hazel Helmuth clarified, “We would like to correct the notion that we are already evicting the affected homeowners of Vista Real Classica.”
“Right now, while we already have the legal standing to exercise our ownership and possessory rights, we understand the homeowners of Vista Real Classica are also victims like us. We are one with them in making sure their rights as buyers of Sta. Lucia are also protected,” she added.
8990 also pledged to support the homeowners should they decide to file cases against Sta. Lucia.
On Sept. 15, Robles 19 asked the Department of Human Settlements and Urban Development to cancel the registration certificate and license to sell of both Sta. Lucia and 8990, accusing them of violating Presidential Decree 975, the law which protects buyers from all types of real estate misrepresentations.
The homeowners said both parties should observe the status quo, while the remaining case (Sta. Lucia Realty versus Puzon) is pending with the Supreme Court.
—Doris Dumlao-Abadilla
Wanted: more competitors
Ride-hailing platform Move It sees the need for more competitors.
In fact, it has asked the government to allow more operators in the motorcycle taxi sector for the benefit of commuters amid the perceived gap in public transportation as evidenced by long queues in terminals.
Francis Juan, Move It chair, said that competition would lead to “best services and fares” for the consumers. The industry currently has only three players: Angkas, Joyride and Move It.
As an example, he said that encouraging competition in telecommunications and commercial airline sectors had resulted in improved services.
“It will be the same in all businesses including the motorcycle taxi business. Competition makes businesses stronger and better,” Juan stressed.
As such, the ride-hailing app operator called for a measure allowing the use of motorcycles as public utility vehicles.
“The longer the delay, the more the public will suffer poor service. Besides, an open sector will generate hundreds of thousands of jobs” he said.
Wayne Jacinto, general manager of Move It, said last month they have 2,000 riders. The operator is eyeing to grow this to 6,000 by the end of the year.
Last month, Grab announced its acquisition of the motorcycle taxi platform. This made Move It a subsidiary of Grab that operates independently.
