S&P raises outlook for RP banks
S&P raises outlook for RP banks
MANILA: Banks in the Philippines now earn more, are better managed, and seeing their asset quality improve six years after the Asian crisis, Standard and Poor's (S&P) said on Friday, raising its outlook for the sector to stable from negative.
"The change acknowledges the stabilizing of the banking sector in terms of asset quality that is evident from the tapering growth rates in non-performing assets" as well as improved profits, the U.S.-based credit rating outfit said in a statement.
Owing to low interest rates, the banks are better able to manage their funding costs as well as carrying costs for the soured loans, it said.
"This is in contrast to a period of aggressive loan growth prior to the 1997 Asian financial crisis and weak risk management practices that led to a deterioration in commercial banks' asset quality."
S&P credit analyst Sim Wee Kiat however said the level of non- performing loans remained high by international standards, and the system "still faces some challenges, as reflected by the high industry risks in the country, compared with other developed banking markets." --AFP
;; ANPAf..r.. MoneyMatter-Japan-economy Japan's indicator points to recovery JP/16/Japan
Japan's indicator points to recovery
TOKYO: Japan's forward-looking index of economic activity stood at 77.8 points in July, suggesting the economy will remain on track to recovery, the Cabinet Office said on Friday.
With the latest data, the leading index has stayed above the 50-point mark, regarded as the dividing line between growth and contraction, for three straight months.
The index for June was revised down to 75.0 points from 80.0 points.
Japan's leading index is based on a series of financial figures such as commodity indices, new car registrations and the number of new home building projects.
The coincident index measuring the current state of the economy also came in at 77.8 points in July.
The June coincident index was revised down to 63.6 points from 66.7 points.--AFP
;; ANPAf..r.. MoneyMatter-UN-rice UN to buy Vietnam rice for Iraq JP/16/Rice
UN to buy Vietnam rice for Iraq
HANOI: The United Nations has agreed to buy 60,000 tons of Vietnamese rice to export to Iraq under the "oil- for-food" program, according to the Ministry of Agriculture and Development.
The delivery will be made in September, a ministry official said.
In May, the UN. allowed Vietnam to resume exports of rise to Iraq under the "oil-for-food" program, which was disrupted by the war.
Iraq was the biggest importer of Vietnamese rice in 2002, taking 800,000 tons or more than 27 percent of the country's total exports.
In the first eight months of this year, Vietnam exported more than 2.9 million tons of rice, an increase of 23.5 percent compared with the same period last year thanks to a massive increase in demand from African countries.
Vietnam is the world's third largest rice exporter after Thailand and India, with 2002 shipments totaling 3.2 million tons.--AFP
;; ANPAf..r.. MoneyMatter-Thailand-bond Thailand to issue up to $735m in bonds JP/16/bond
Thailand to issue up to $735m in bonds
BANGKOK: Thailand plans to issue 20 to 30 billion baht (490 to US$735 million) in bonds from the Financial Institution Development Fund (FIDF) to non-residents within the next two months, a report said on Friday.
The Ministry of Finance will offer the bonds at special prices and not levy a withholding tax as an incentive to attract more investors, according to the Business Day newspaper.
Thai Finance Minister Suchart Chaovisit has submitted the plan to Prime Minister Thaksin Shinawatra, the daily said citing Olarn Chaipravat, an adviser to Suchart.
The bond issue is part of the ministry's plan to issue about 200 billion baht in bonds by next year, he said.
Olarn said the bond plan was proposed on Wednesday during a meeting among officials from the Asia-Pacific Economic Cooperation forum in Phuket, with the aim of disseminating information on Thai bond conditions.
The government said during the meeting that there will be withholding tax exemptions for non-residents who buy the new bonds, Olarn told the daily.
He said many foreigners previously found it difficult to invest in Thailand due to foreign exchange control mechanisms and other regulations--AFP