THE GOOD news is the creation of a formidably competent economic team. Its members, namely Finance Secretary Benjamin Diokno, Budget Secretary Amenah Pangandaman, Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla, and Socioeconomic Planning Secretary Aresnio Balisacan will, I am sure, combine to meet the economic challenges which face the Nation.
Members of Congress are also using their influence to urge BSP to retain the two percent maximum interest rates per month on outstanding balances on credit cards. I agree. Credit card debt is to be avoided if at all possible. Two percent per month compounded monthly gives a true annual percentage rate of charge of 26.82 percent, not 24 percent as is often stated. Bank customers should try to negotiate with their bank when seeking a loan and not allow credit card debt to get our of hand. Banks are always seeking ways of providing loans to ‘good’ customers who have a history of repaying their borrowings on time.
In terms of facilitating home ownership, Pag-IBIG is rapidly expanding. For 1 January to 30 September 2022, its home loan releases grew to a record high P83 billion. Many families are first time buyers and, hopefully, will be able to eventually liquefy their indebtedness. Our economy depends significantly on home owners.
***
Now that the specter of COVID-19 is receding, we hope that the tourist industry can grow again. We believe it will.
The recently – announced public private partnership (PPP) projects include the potential to enhance many of our provincial airports. We hope this will eventually engender a rapid increase in short-term package holidays throughout the Philippines.
For much of Europe, the sanctions against using Russian energy will result in many countries experiencing extremely cold housing. What better for Britons and Germans, for example, to spend time in the Philippines on extended holidays.
The Philippine Retirement Authority has an excellent scheme whereby solvent overseas visitors over the age of 35 who are prepared to deposit US $20,000 are able to acquire, if they wish, permanent residency status. The deposit may be used to build their own homes.
I understand this scheme is administered by the Department of Tourism (DOT). It has the potential to improve our economy significantly.
In any case, DOT has already achieved its tourist arrival target for 2022 to 1.7 million.
Next year, particularly if pandemic – related travel restrictions can be lifted, DOT should be able to attract at least 2.5 million visitors.
A significant boost to our economy!/PN
