Senate again fails to pass SPAV bill

The Senate failed to grant President Arroyo’s request yesterday to pass the Special Purpose Asset Vehicle (SPAV) bill before it goes on a two-week recess starting today.

However, Sen. Ralph Recto, chairman of the Senate committee on ways and means and principal author and sponsor of the bill, remains hopeful that it would be passed on Sept. 30 when Congress resumes session.

Sen. Sergio Osmeña III, however, is convinced that the measure, unless amended, would not pass muster in the Senate.

"It has two chances of passing – little and none," Osmeña said.

Recto said that the bill is very technical and differences are mainly conceptual, not political. There is no united stand among the administration and minority senators for or against the bill.

Senate Majority Leader Loren Legarda said that the SPAV bill is "a very difficult one."

"We know the importance of this bill to spur economic activity since there will be more liquidity in the banking system. But we also must make sure that the stakeholders will be protected, meaning government, the borrowers, financing institutions, as well as the SPAV," she said. – Efren Danao