Privilege speech of Akbayan Partylist Rep. Tom Villarin
January 14, 2019
Mr. Speaker, I rise on a personal and collective privilege.
Last January 8, 2019, Hanjin Heavy Industries and Construction Philippines, a South Korean shipbuilding company based in Subic port, Zambales, filed for bankruptcy leaving some US$412-M in outstanding loans with local banks in limbo. This also places some 22,000 workers and their jobs in peril as well as loses to the local economy.
A report claimed that the Rizal Commercial Banking Corp. (RCBC), the state-owned Land Bank of the Philippines, Metropolitan Bank & Trust Co. (Metrobank), Bank of the Philippine Islands (BPI), and BDO Unibank, Inc. are now working together to cover their combined loan exposure to the Korean conglomerate. These banks are among the top 10 banks in the country and the biggest lenders to business.
Despite the Banko Sentral ng Pilipinas (BSP)’s pronouncement that its impact in the banking system is negligible, stock prices of three of the listed banks fell in the wake of the news. Shares at RCBC suffered the steepest blow as it dropped by 9.12% on Friday, while Metrobank and BPI stock prices went down by 4.82% and 4.76%, respectively. BDO shares, though steadied from the initial shock, have the least exposure among the Hanjin lenders.
The lenders are said to be working to take control of Hanjin’s property in Zambales, with assets estimated at $1.6 billion.