PHILIPPINE NEWSPAPER HIGHLIGHTS - MAY 3, 2004.

MANILA, May 3 Asia Pulse - Highlights of today's newspapers:

MANILA TIMES:

- After offering banks the carrot, the Bangko Sentral ng Pilipinas is mulling the use of a soft stick to compel lenders to bring down the level of their non-performing loans. Monetary authorities want each bank to commit to a bad loan-reduction program, substantial progress in which would entitle the lender to some incentives. We will require banks to sign a memorandum of understanding (MOU) asking them to commit to a reduction in their non-performing loans, BSP Deputy Governor Alberto V. Reyes told reporters last Friday.

- Napoleon L. Nazareno, president and CEO of dominant carrier Philippine Long Distance Telephone Co., said the company is not privy to the exploratory talks being conducted by its chair to acquire Thai telecom firm TA Orange Co. Ltd.

- The quest of local hog raisers to stop the importation of Indian carabeef hit a snag when an international quarantine regulator said nothing is wrong with such importation as long as certain conditions are met.

- The Monetary Board is giving thrift and rural banks a year to comply with international standards on capitalization. In a decision last Thursday, the central banks policy-making body granted a one-year period for thrift and rural lenders to meet regulators 10-percent capital adequacy ratio for local banks under the risk-based approach adopted in recent years by the BSP.

- A legal team tasked by the the Bangko Sentral ng Pilipinas to look into the possibility of putting up a centralized credit bureau in the near term has recommended that the central bank require banks to ...