Opening Statement of Sen. Grace Poe
Senate Committee on Banks, Financial Institutions and Currencies

This public hearing is hereby resumed.

Last hearing, we were only given some preliminary figures to guide us in the deliberation of the proposed measure. Thus, the senators asked for several studies to aid the evaluation of the proposal:

a. From the BIR, we asked for the tax subsidies granted under the old SPV Laws.

b. From the BSP, we also asked for several data like:

• The countries using the SPV mechanism;

• Data culled from the old SPV laws including the target percentage of non-performing assets under number of collateralized non-performing loans (NPLs), and the ratio of NPLs to real estate;

• Projection on NPLs and NPAs for the succeeding years;

• Safeguards to be implemented to guard against conflict of interest among financial institutions who are also affiliated real estate developers

c. From the SEC, its report on the cases filed in relation to the implementation of the SPV laws

d. From the PCC, its Market Concentration Analysis

All requests for submissions were duly followed up but only the PCC has complied so far. We therefore expect immediate compliance from the very same agencies pushing for this priority legislation.

Since most of the heads of the agencies are appearing for the first time today, may I ask the Committee Secretary to read for the record all resource persons who are virtually present for the benefit of everyone tuned in to this hearing.

Before we allow the senators to begin with their questions, perhaps the agencies would like to briefly make their opening statement.