SALIENT POINTS OF HOUSE BILL NO. 6622: THE PHILIPPINE BANKING INDUSTRY RESILIENCY AGAINST COVID-19 PANDEMIC ACT

On May 11, 2020 the National Economic and Development Authority (NEDA) through Acting Socioeconomic Planning Secretary Karl Kendrick Chua revealed that House Bill No. 6622 (HB6622) or “The Philippine Banking Industry Resiliency Against COVID-19 Pandemic Act” is likely to be certified as urgent by President Rodrigo Duterte. The Bill authored by Representative Junie Cua will encourage financial institutions to sell their non-performing assets (NPAs) to Financial Institution Strategic Transfer Corporations (FISTSCs), and grants tax exemptions and reduced registration and transfer fees to certain transactions. One of the major reason for the probable…

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GENERAL COMMUNITY QUARANTINE (GCQ): THE GUIDELINES FOR BUSINESSES OPERATIONS IN AREAS UNDER GCQ

As the outbreak of COVID-19 pandemic is being controlled by lockdowns during the Enhanced Community Quarantine (ECQ), Philippine cities and provinces are starting to ease restrictions. The next phase after the ECQ is the General Community Quarantine (GCQ) wherein more businesses are allowed to open and public transportation is allowed to return, albeit, at a reduced capacity. The GCQ phase, according to the government may last months to ensure that the second wave of the pandemic, if it comes, will not devastate the country again. In Metro Manila, the capital of the…

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GOVERNMENT PLANS AND RESPONSES TO BOLSTER THE ECONOMY DURING AND AFTER THE LOCKDOWN CAUSED BY THE COVID-19 PANDEMIC

The lockdown of the capital Metro Manila and other provinces due to the COVID-19 pandemic has put a damper on the fast rising economy of the Philippines. For the first time in a long-time, the Philippines is looking at a contraction of its economy possibly resulting in many micro, small, and medium enterprises (MSMEs) and also big business like airline companies filing for bankruptcies. The Philippine government has already introduced programs to cushion the economic impact of the pandemic like the Php50.8 billion peso small business wage subsidy program for displaced workers…

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GOVERNMENT STEPS TO ASSIST MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) DURING AND AFTER THE ENHANCED COMMUNITY QUARANTINE

The COVID-19 pandemic currently ravaging the world has been causing lockdowns and putting non-essential businesses on virtual standstill. In the Philippines, many areas are under “Enhanced Community Quarantine” (ECQ) which is basically a lockdown, causing non-essential businesses to temporarily shutter its doors and resulting in economic reverses. One of the hardest hit sectors are the micro, small and medium enterprises (MSMEs) who are not big enough and cash-rich enough to survive the suspension of its businesses without government aid. Thus, the government through a law, issuances, and other declarations, have been making…

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HOUSE BILL 78: PROPOSED AMENDMENTS TO THE PUBLIC SERVICE LAW AND ITS EFFECT ON PUBLIC UTILITIES AND FOREIGN OWNERSHIP

On 10 March 2020, the House of Representatives approved on the third and final reading House Bill 78, which if passed into law, will amend Commonwealth Act No. 89 or the Public Service Law. HB 78, if passed into law, would put a statutory definition on a public utility which under the current law is considered the same as public service. Putting a definition to, and limiting what is considered a public utility to just a handful of industries would effectively remove foreign-ownership restrictions on the industries not considered as public utilities.…

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THE REAL ESTATE INVESTMENT TRUST (REIT) : SALIENT PROVISIONS OF R.A. 9856

Republic Act (RA) 9856 otherwise known as “An Act Providing the Legal Framework for Real Estate Investment Trust and for Other Purposes” or the Real Estate Investment Trust (REIT) Act of 2009 lapsed into law on December 17, 2009 when then President Gloria Macapagal Arroyo did not sign the same. PURPOSE OF REAL ESTATE INVESTMENT TRUST LAW The purpose of the REIT law as pursuant to Section 2 thereof is “It is the policy of the State to promote the development of the capital market, democratize wealth by broadening the participation of…

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EASE OF DOING BUSINESS ACT AND THE ANTI-RED TAPE AUTHORITY COUNCIL

Republic Act No. 11032 or the Ease of Doing Business Act is a landmark legislation which created a framework for the government’s initiative to make investment in the Philippines more attractive. Included in the law is the creation and/or appointment of the bodies that are tasked to implement its provisions thereof, the Anti-Red Tape Authority (ARTA) and the Ease of Doing Business and Anti-Red Tape Advisory Council. THE ANTI-RED TAPE AUTHORITY (ARTA) The ARTA, which is attached to the office of the President, is tasked by law to ensure that the provisions…

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CORONAVIRUS, THE STATE’S EXERCISE OF POLICE POWER, AND ALTERNATIVES SOURCES OF INVESTMENT

The COVID-19 or the Coronavirus epidemic that started in Wuhan, China has become one of the more pressing issues the international community is facing right now. Efforts have been made and strategies devised in order to stop the virus from further spreading. However, despite untiring efforts, the viral infection has been slowly spreading worldwide. Coronavirus epidemic that started in Wuhan As of this date, the Philippines has three (3) confirmed COVID-19 cases and there are fears that the number of infected might increase due to the recent influx of tourists and investors…

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DATA PRIVACY ACT OF 2012: REPUBLIC ACT (RA) 10173

On 15 August 2012 President Benigno Aquino, Jr. signed into law Republic Act (RA) 10173 or the Data Privacy Act of 2012. This law aims to protect the fundamental right of privacy of communication while ensuring free flow of information to promote innovation and growth. (Sec 2, RA10173) One of the important goals of the aforementioned law is to protect an individual’s personal information from unauthorized processing by any natural or juridical person. The following are the salient portion of RA10173. WHAT KIND OF INFORMATION DOES THE DATA PRIVACY ACT OF 2012…

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PUBLIC-PRIVATE PARTNERSHIP (PPP) IN THE PHILIPPINES AS GOVERNED BY RA 9184 AND RA 6957 AS AMENDED BY RA 7718

Public-Private Partnership (PPP) is an agreement between the public sector and private entities to jointly undergo certain projects which are normally provided by the public sector including but not limited to infrastructure and services. PPPs are advantageous to both the public and private sectors as the former can acquire funding for projects and at the same time mitigate their risks. On the other hand, private entities entering into PPPs have the opportunity to invest in projects with a reasonable rate of return. RA 9184: GOVERNMENT PROCUREMENT REFORM ACT - PUBLIC-PRIVATE PARTNERSHIP (PPP)…

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