Philippine Airlines plans court protection as pandemic hits finances | ABS-CBN
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Philippine Airlines plans court protection as pandemic hits finances
Philippine Airlines plans court protection as pandemic hits finances
Neil Jerome Morales,
Reuters
Published Nov 25, 2020 12:22 PM PHT
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Updated Nov 25, 2020 03:51 PM PHT
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MANILA - Philippine Airlines plans to seek court protection from creditors while it pursues debt restructuring with government help, the finance minister said on Wednesday, as it fights to survive a pandemic that has battered the industry globally.
The loss-making flag carrier, partly owned by Japan's ANA Holdings Inc, informed the ministry of its plans last week but gave no details as to what kind of government assistance it needs, Finance Secretary Carlos Dominguez told reporters.
Philippine Airlines, which last month announced a reduction of 2,700 jobs, or a third of its workforce, did not immediately respond to request for comment.
MANILA - Philippine Airlines plans to seek court protection from creditors while it pursues debt restructuring with government help, the finance minister said on Wednesday, as it fights to survive a pandemic that has battered the industry globally.
The loss-making flag carrier, partly owned by Japan's ANA Holdings Inc, informed the ministry of its plans last week but gave no details as to what kind of government assistance it needs, Finance Secretary Carlos Dominguez told reporters.
Philippine Airlines, which last month announced a reduction of 2,700 jobs, or a third of its workforce, did not immediately respond to request for comment.
As of end-September, the listed operator of Philippine Airlines reported 198 billion pesos ($4.12 billion) in lease and long-term debts.
As of end-September, the listed operator of Philippine Airlines reported 198 billion pesos ($4.12 billion) in lease and long-term debts.
Net losses in January to September surged to 28.9 billion pesos, more than three times the 8.5 billion for the same period of last year.
"Philippine Airlines management and stakeholders continue to work on a comprehensive recovery and restructuring plan that will enable PAL to emerge financially stronger from the current global crisis. We will make the necessary disclosures at the proper time, once details are finalized. In the meantime, we continue to gradually increase our flights operated on most of our international and domestic routes in line with market recovery," PAL said in a statement.
Net losses in January to September surged to 28.9 billion pesos, more than three times the 8.5 billion for the same period of last year.
"Philippine Airlines management and stakeholders continue to work on a comprehensive recovery and restructuring plan that will enable PAL to emerge financially stronger from the current global crisis. We will make the necessary disclosures at the proper time, once details are finalized. In the meantime, we continue to gradually increase our flights operated on most of our international and domestic routes in line with market recovery," PAL said in a statement.
Philippine Airlines halted operations in mid March as the country imposed one of the world's strictest and longest coronavirus lockdowns. It is slowly increasing operations amid pandemic travel curbs.
Philippine Airlines halted operations in mid March as the country imposed one of the world's strictest and longest coronavirus lockdowns. It is slowly increasing operations amid pandemic travel curbs.
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Philippines now out of dirty money ‘gray list’: SEC
Philippines now out of dirty money ‘gray list’: SEC
Published Feb 22, 2025 01:53 AM PHT
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Updated Feb 22, 2025 11:45 AM PHT
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MANILA (UPDATED) — The Securities and Exchange Commission (SEC) said Friday the Philippines has officially exited the gray list of the Financial Action Task Force (FATF).
MANILA (UPDATED) — The Securities and Exchange Commission (SEC) said Friday the Philippines has officially exited the gray list of the Financial Action Task Force (FATF).
The FATF made the announcement on the last day of the FATF Plenary on February 21, Friday in Paris, France.
The FATF made the announcement on the last day of the FATF Plenary on February 21, Friday in Paris, France.
“The FATF welcomes the Philippines’ significant progress in improving its AML/CFT regime. The Philippines strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in June 2021,” the global watchdog said in a statement.
“The FATF welcomes the Philippines’ significant progress in improving its AML/CFT regime. The Philippines strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in June 2021,” the global watchdog said in a statement.
Jurisdictions under the grey list are subject to increased monitoring due to deficiencies in its financial systems.
Jurisdictions under the grey list are subject to increased monitoring due to deficiencies in its financial systems.
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EXIT FROM LIST TO BENEFIT FILIPINOS, BUSINESSES
According to the Anti-Money Laundering Council (AMLC), “the exit will reduce international fund transfer requirements, benefitting Filipino individuals and businesses.”
According to the Anti-Money Laundering Council (AMLC), “the exit will reduce international fund transfer requirements, benefitting Filipino individuals and businesses.”
Bangko Sentral ng Pilipinas (BSP) Governor and AMLC Chairman Eli Remolona, Jr. said this was a result of “strong cooperation” between the government and the private sector.
Bangko Sentral ng Pilipinas (BSP) Governor and AMLC Chairman Eli Remolona, Jr. said this was a result of “strong cooperation” between the government and the private sector.
“It also complements our ongoing efforts to make the financial system a stronger driver of sustainable growth,” Remolona said.
“It also complements our ongoing efforts to make the financial system a stronger driver of sustainable growth,” Remolona said.
In a statement, the AMLC said the removal is “a milestone that underscores the country’s commitment to combat money laundering and terrorist financing.”
In a statement, the AMLC said the removal is “a milestone that underscores the country’s commitment to combat money laundering and terrorist financing.”
“Exiting the FATF grey list is a significant step in strengthening the Philippines’ financial system and maintaining global confidence,” it added.
“Exiting the FATF grey list is a significant step in strengthening the Philippines’ financial system and maintaining global confidence,” it added.
SEC Chairperson Emilio Aquino, also the longest serving member of the Anti-Money Laundering Council (AMLC), highlighted the SEC’s role in this development.
SEC Chairperson Emilio Aquino, also the longest serving member of the Anti-Money Laundering Council (AMLC), highlighted the SEC’s role in this development.
“When I became a member of the AMLC in 2018, the SEC stepped up and positioned itself at the forefront of our fight against money laundering and terrorist financing, recognizing the need for reforms to prevent the misuse of the corporate vehicle in illicit activities,” Aquino said.
“When I became a member of the AMLC in 2018, the SEC stepped up and positioned itself at the forefront of our fight against money laundering and terrorist financing, recognizing the need for reforms to prevent the misuse of the corporate vehicle in illicit activities,” Aquino said.
POTENTIAL FOR ABUSE
The government's drive against dirty money has, however, been used "to harass organizations and activists in a surge of terrorism financing cases," New York City-based Human Rights Watch said earlier this month.
The government's drive against dirty money has, however, been used "to harass organizations and activists in a surge of terrorism financing cases," New York City-based Human Rights Watch said earlier this month.
HRW noted the successful prosecutions of terrorism financing cases, but also pointed out that civil society organization workers and activists, members of the clergy, and journalists are facing similar cases.
HRW noted the successful prosecutions of terrorism financing cases, but also pointed out that civil society organization workers and activists, members of the clergy, and journalists are facing similar cases.
"Many of these cases suggest that Philippine authorities are relying on accounts from alleged former rebels; the same flimsy evidence that the military and the police have long used in politically motivated prosecutions," HRW also said.
"Many of these cases suggest that Philippine authorities are relying on accounts from alleged former rebels; the same flimsy evidence that the military and the police have long used in politically motivated prosecutions," HRW also said.
HRW highlighted the cases against the Community Empowerment and Resource Network in Cebu and Kaduami in the Cordillera region, and the arrest of two community workers of Paghidaet sa Kauswagan Development Group on Negros Island as among the cases based on questionable allegations.
HRW highlighted the cases against the Community Empowerment and Resource Network in Cebu and Kaduami in the Cordillera region, and the arrest of two community workers of Paghidaet sa Kauswagan Development Group on Negros Island as among the cases based on questionable allegations.
The National Union of Peoples' Lawyers, which submitted a shadow report to the FATF, said Philippine "adherence to FATF standards...has been achieved at the expense of democracy itself."
The National Union of Peoples' Lawyers, which submitted a shadow report to the FATF, said Philippine "adherence to FATF standards...has been achieved at the expense of democracy itself."
NUPL said this week that the government has treated non-profits and CSOs incorrectly as "inherently vulnerable to terrorism financing abuse."
NUPL said this week that the government has treated non-profits and CSOs incorrectly as "inherently vulnerable to terrorism financing abuse."
This, it said, has led to "overregulation, financial restrictions, and invasive intrusions of privacy by regulatory agencies" that have affected funding for CSO programs.
This, it said, has led to "overregulation, financial restrictions, and invasive intrusions of privacy by regulatory agencies" that have affected funding for CSO programs.
"Prosecution quotas and asset freezes are touted as metrics of progress, but their true cost is borne by development workers, human rights defenders, and ordinary citizens," NUPL also said.
"Prosecution quotas and asset freezes are touted as metrics of progress, but their true cost is borne by development workers, human rights defenders, and ordinary citizens," NUPL also said.
WHY WAS THE PHILIPPINES ON THE GREY LIST?
The Philippines was included in the FATF grey list in June 2021 after the global watchdog found "strategic deficiencies” in how the country handles the entry and exit of suspected illegal funds.
The Philippines was included in the FATF grey list in June 2021 after the global watchdog found "strategic deficiencies” in how the country handles the entry and exit of suspected illegal funds.
The country was given until January 2023 to make the necessary reforms to exit the gray list.
The country was given until January 2023 to make the necessary reforms to exit the gray list.
In January 2024, President Ferdinand Marcos Jr. made it a priority for the Philippines to exit the FATF gray list, noting that the deadline had already lapsed by a whole year.
In January 2024, President Ferdinand Marcos Jr. made it a priority for the Philippines to exit the FATF gray list, noting that the deadline had already lapsed by a whole year.
In October 2024, the FATF said the Philippines has made significant strides to counter money laundering, terrorist financing and proliferation financing, and was on its way to exiting the gray list.
In October 2024, the FATF said the Philippines has made significant strides to counter money laundering, terrorist financing and proliferation financing, and was on its way to exiting the gray list.
Despite the achievement, the global dirty money watchdog said the country must continue its efforts to combat financial crimes.
Despite the achievement, the global dirty money watchdog said the country must continue its efforts to combat financial crimes.
“The FATF encourages the Philippines to continue its work in ensuring that its CFT (combating the financing of terrorism) measures are appropriately applied, particularly the identification and prosecution of TF (terrorist financing) cases, and are neither discouraging nor disrupting legitimate [not-for-profit ] activity,” it added.
“The FATF encourages the Philippines to continue its work in ensuring that its CFT (combating the financing of terrorism) measures are appropriately applied, particularly the identification and prosecution of TF (terrorist financing) cases, and are neither discouraging nor disrupting legitimate [not-for-profit ] activity,” it added.
— with reports from Katrina Domingo, Adrian Ayalin, Arthur Fuentes and Jonathan de Santos, ABS-CBN News
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