New Regulations for Foreign Tourists in The Philippines

Honorable Secretary of Justice (SOJ) Leila M. de Lima approved Immigration Memorandum Circular No. SBM 2013-003 on 23 December 2013 which was recommended by Bureau of Immigration (BI) Commissioner Siegfred B. Mison. Said issuance provides for the policies and guidelines on the extension and updating of temporary visitor’s visa (TVV).

Allowable Extensions

Foreigners admitted under Section 9 (a) of the Philippine Immigration Act (PIA) of 1940, as amended, or Executive Order No. 408, as amended, may extend their authorized stay every two (2) months for a total stay of not more than:
a) Twenty-four (24) months for visa-required nationals; and
b) Thirty-six (36) months for non-visa required nationals.

The said periods shall be counted from the date of applicant’s latest recorded arrival.

Foreigners with Derogatory Records

Foreigners included in the Bureau’s derogatory list shall be allowed to extend/ update their authorized stay as temporary visitors; Provided that, their inclusion in the derogatory list is not on the ground of having overstayed in the country.

Restrictions on Extension/Updating

The following applications for extension/ updating, accompanied by a sworn written explanation stating valid grounds and/or justifications with supporting documents, shall require the approval of the Commissioner:
a) Extensions of stay beyond the maximum allowable stay prescribed in Section 2 hereof; and
b) Foreigners who have overstayed for more than six (6) months but not exceeding twelve (12) months regardless if their stay is within the maximum allowable period.

Acquisition of Appropriate Visa/Permit

Foreigners may be granted an extension beyond the maximum allowable period provided that they shall secure appropriate visas/ permits during such extension and have not overstayed in any given period.

Overstaying Foreigners

Foreigners who have overstayed for twelve (12) months or less but have been in the country beyond the maximum allowable period already may be permitted to update their stay with order to leave the country within fifteen (15) calendar days therefrom and their names may be included in the Bureau’s blacklist upon the discretion of the Commissioner; Provided that, the Commissioner, in the exercise of sound judgment, may allow such foreigners to update and extend their stay taking into consideration their Filipino lineage, medical condition, minority and other analogous circumstances.

Foreigners who have overstayed for more than twelve (12) months regardless if their stay is within the maximum allowable period or those found to be overstaying by virtue to a complaint or Mission Order regardless of the period shall be referred for deportation.

Payment

In addition to the extension/ updating fees and other charges, the concerned foreigners shall be required to pay all immigration arrears imposed by Republic Act No. 562, as amended.

Allen meinen Leserinnen und Lesern:

Ein Frohes und Gesegnetes Weihnachtsfest und ein Frohes und Glueckliches Neues Jahr 2014!

My First German-Bisaya-English Radio Show...

Es war schon irgendwie aufregend. Und, es hat viel Spass gemacht. Ich war Gast bei ABS CBN in der Radiosendung von Ian Garcia, Freund, Mindanao Times Kolumnist, Chefredakteur des M-Magazins (Mindanao Lifestyle and Living) und TV-Moderator...

Where is Sabine? Wo ist Sabine?

What Makes Me a Global Mind? www.internations.org interviewed me...

In our InterNations Recommended Blog section we let you take the spotlight! Expat life in general is, of course, a perfect breeding ground for great, user-generated reads, and life in the Philippines makes no exception. Take your time and browse the great blogs showcased in this article!

Please tell us a little bit about yourself. Who you are, where you come from, when you moved to the Philippines, etc.

I am from Northrine Westfalia in Germany and moved to the Philippines for good in 1999 after visiting the country since 1982 regularly. Right now I am teaching German language at a state university in Davao City/Mindanao; I am a journalist for radio/print/TV and a certified translator, blogger and businessman.

When and why did you decide to start blogging about your experiences?

I started blogging some 10 years ago, because that's the easiest way to tell the whole world what you are thinking about.

Do you have any favorite blog entries of yours?

Unfortunately, I don't have any favourite entries of my blog yet.

Tell us about the ways your new life in the Philippines differs from that back home. Did you have trouble getting used to the new circumstances? Did you experience culture shock?

I got no problems in my new expat life.

Do you think you were fully prepared for what awaited you in the Philippines? If you could, would you change some decisions/preparations you made?

Yes, I was fully prepared and I would never regret that I moved to the Philippines. Many expats just came here - very blue-eyed and then complaining. My advice: plan first before you move here.

Every expat knows that expat life comes with some hilarious anecdotes and funny experiences. Care to share one with us?

Sorry, nothing available right now.

Which three tips would you like to give future expats before they embark on their new life in the Philippines?

• Check first your financial background. If you are in financial troubles, nobody will help.
• Second: Think before moving here, what you gonna do. Being bored is killing.
• Third: Try to stay in the Philippines for a year or so, before you break down all bridges to your home country.

How is the expat community in the Philippines? Did you have a hard time finding like-minded people or fellow expats?

There are a lot of expat communities in the Philippines. As a journalist I didn't have problems to find same-minded expats.

How would you summarize your expat life in the Philippines in a single, catchy sentence?

There is no paradise on earth, but it's really fun in the Philippines.

What makes me a Global Mind? There are many answers. I was always interested in foreign countries and their people and culture. And, my spouse is from the Philippines. Of course, http://www.internatons.org with an awesome large network around the globe helped me a lot connecting more global minds - not only in the Philippines.

Philippine Banks Have a Hard Time Raising Capital

By Christopher Langner

The board of Metrobank, the largest bank in the Philippines, tweaked a resolution authorising the issuance of Basel III compliant capital notes last week, but foot-dragging by the banking regulator means its efforts may have been in vain.A deal by Metrobank is still a long way from happening. The transaction is stalled partly because the Bangko Sentral ng Pilipinas, which doubles as central bank and regulator, has yet to approve the sale.

Bangko Sentral also has placed onerous regulations around Basel III-compliant subordinated debt issuance that has stymied investor participation in the Philippine bank capital market.

It is not just Metrobank. Other private banks are seeking the green light to increase their capital via subordinated bonds that meet the new bank capital guidelines, which call for investors to share losses with issuing banks if they are declared non-viable. Rizal Commercial Banking Corporation has been waiting for almost a year for the central bank's go-ahead.

Metrobank's board made its move just three weeks after the Development Bank of the Philippines printed a Basel III deal. It was the first offering from the country that meets the new standards, which means the bonds could be written down to zero. From January 1, any bank-issued subordinated bonds that are not structured this way will not count towards capital.

But DBP is the only bank so far to have issued Basel III subordinated paper under the new system. Being fully owned by the government, it avoided the delays private lenders face getting approval for their Basel III-compliant offerings.

Coordinated by Standard Chartered and co-arranged by BPI, PNB and Deutsche Bank, the deal attracted strong interest from local investors.

Still, DBP had to find a solution to what bankers and lawyers are calling overzealous regulation by the Bangko Sentral ng Pilipinas.

In February, the regulator issued Circular 786, which requires any investor intending to buy subordinated bonds with loss-absorption clauses to sign a big boy letter - an agreement that seeks to limit liability by restricting the right to sue over non-disclosure of material information.

Additionally, investors may be required to undergo suitability tests.

Nestor Espenilla, Jr., deputy governor of Bangko Sentral ng Pilipinas, defended the regulator's stance, by saying it is necessary to protect investors.

"As a consumer protection matter, BSP finds it appropriate to have in place Circular 786 to complement our Basel 3 implementation framework both to ensure that retail investors in the Philippines are adequately informed of their possible risk exposures, and to minimize potential mis-selling of comparatively high yield hybrid, innovative instruments in a generally low interest rate environment," he said by email.

"As a regulator, we believe in striking an appropriate balance between the interests of banks and their customers in the context of market-based rules," he added.

OVERKILL

"I cannot think of any other country in the world that has such regulation in place," said a lawyer in Hong Kong who specializes in debt capital markets.

The circular's investor protection rules, however, are only applicable to Basel III transactions distributed onshore, Espenilla said.

"Those distributed offshore are covered by applicable rules in the offshore jurisdiction - our banks now understand this," he explained.

But lawyers said the wording on the regulation itself leaves it open to discussion. The February circular suggests even buyers in the secondary market would be required to sign risk disclosure statements.

"I am pretty sure it applies to secondary as well," said the Hong Kong lawyer. Indeed, in a clarification issued in March, the central bank stated that the requirements in the circular "are applicable to all prospective investors in Additional Tier 1 and Tier 2 capital instruments." The regulator bolded the word 'all' to ensure there was no doubt over its meaning.

It is no wonder that Metrobank amended its original plans. The bank had mandated JP Morgan and UBS and even met some investors earlier in the year with eyes set on issuing US$500m in Tier 2 bonds in the offshore market. Now it is considering issuing at home.

As DBP proved, depending on how well a bank is known, it may be easier to get investors in Manila to jump through all the hoops required by the central bank.

Even at home, though, Metrobank still needs regulatory approval to go ahead. And that has been a very slow process.

Ultimately, one banker in the Philippines said, the reason for the drawn-out consent and excessive regulation is to safeguard the Central Bank itself.

"They have a history of being sued by disgruntled investors claiming they should have not allowed certain securities to be sold. Given these bonds can be fully written-down, the [central bank] wants to be absolutely sure it is not liable before letting anyone in the Philippines invest in the bonds," said the banker.

DBP did not face that issue because it is state owned. So, the banker said, the government will not let it fail, especially if it can be sued for doing so. "This really puts private banks at a disadvantage to government banks," said the treasurer.