BSP KEEPS RATES AFTER

By Cai U. Ordinario @caiordinario

MOnEtIZE naIa, raISE P7t

By Lito U. Gagni

THE government will, as part of a long-term plan, eventually monetize the Ninoy Aquino International Airport (Naia) complex once the two international airports under construction—the Bulacan and Sangley airports—are operating, and see proceeds of P7 trillion from the 70-hectare prime lot.

that before that happens, the government needs to have the Bulacan and Sangley airports operating.

In the meantime, the government will start modernizing the old airport which is now congested. Bautista said that the airport only has a capacity of 32 million passengers but it has to come to terms with 60 million in passenger volume.

The Monetary Board decided to keep the interest rate on the BSP’s overnight reverse repurchase facility at 6.25 percent. The interest rates on the overnight deposit and lending facilities were also retained at 5.75 percent and 6.75 percent, respectively.

On Thursday, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said the decision of the Monetary Board took into consideration weaker GDP growth in the second quarter.

“The Monetary Board also recognized the challenging outlook for economic growth, as the weaker GDP outturn for the second quarter of 2023 reflected a broad-based slowdown in domestic demand. Household consumption slowed due to elevated commodity prices, while government spending contracted relative to the previous year,” Remolona said.

“Given these considerations, the Monetary Board deemed it appropriate to maintain monetary policy settings to allow a moderation of inflation even as authorities continue to assess the emerging risks to the inflation outlook,” he added.

Transportation Secretary Jaime J. Bautista bared this during a forum that followed his speech before the Rotary Club of Manila at the Manila Polo Club on Thursday, where he expounded on the 8-point socioeconomic agenda of President Marcos Jr. that aims to reduce cost of doing business, bring about carbon neutrality, create jobs, improve mobility, and spur economic growth.

Bautista said at P1 million per square meter, the government can realize P7 trillion from the eventual sale of the Naia, but stressed

“It is difficult to solve congestion,” Bautista said, but the government will introduce new ways of tackling the problem, including expanding the immigration counters.

The DOTr, Bautista said, is trying to “improve the passenger experience” by expanding the terminal. One terminal that is set to open is one in the old Philippine Village Hotel, where another terminal can be put up, although there is a court issue that is yet to be resolved.