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Wednesday, January 15, 2003
SPAV signing good for RP econ: Finex exec
By Clara Mae Hortelano
THE signing of the Special Purpose Asset Vehicle (SPAV) is an advantage to the country’s economy, said Romy Lopez, manager of China Bank Northdrive and president of the Financial Executive Institute of Bacolod Inc. (FINEX).
“The signing of SPAV into law is a welcome move for it will strengthen the bank’s balance sheet,” said Lopez.
Lopez told Sunstar.Star Bacolod the signing of SPAV will promote more lending activities among a number of banks in the country.
More banks will concentrate now on their loan activities, he said.
“The loan activities are expected to increase this year and this is more favorable to the businessmen and to small and medium enterprises of the country,” he said.
President Macapagal-Arroyo signed on Friday the SPAV bill that would get rid of the banks’ non-performing assets (NPAs), including bad loans and foreclosed properties, and non-performing loans (NPLs).
“One of its objectives maybe is to endorse more lending in the country because the banks’ balance sheets will be bolder after the signing,” said Lopez.
Likewise, Joey Ledesma, former president of FINEX, shared the same sentiments.
“It will liquefy the banks’ imbalanced sheet,” he said.
Those banks will get rid of those bad investments which do not earn, Ledesma said, adding that their loses will be recovered in the form of cash returns.
“What is happening right now is that many banks are interested in unloading their NPLs and NPAs with asset management companies (AMCs),” Ledesma said. CMH
(January 15, 2003 issue)
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