PRESS DIGEST - Philippine newspapers - June 26

MANILA, June 26 (Reuters) - These are the leading stories in Manila newspapers on Friday. Reuters has not verified these stories.

- The World Bank has approved a $70 million farming loan for the Philippines aimed at boosting rice output. (ALL PAPERS)

- A political science professor at the University of the Philippines said he would seriously consider running against President Gloria Macapagal Arroyo should she seek a congressional seat representing the second district of her home province of Pampanga in 2010. (PHILIPPINE DAILY INQUIRER)

- Health authorities said 536 of the 727 people confirmed to have the H1N1 flu virus in the country have already recovered. (THE PHILIPPINE STAR)

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BUSINESS

- Factory output tumbled for the sixth straight month in April as demand remained moribund, the government said. (BUSINESSWORLD)

- Metro Pacific Investments Corp (MPI.PS) will defer its acquisition of a 10.2 percent stake in Manila Electric Co (MER.PS) until the power retailer's share price stabilises, the chairman of the conglomerate Manuel Pangilinan said. (PHILIPPINE DAILY INQUIRER, MANILA STANDARD TODAY, THE PHILIPPINE STAR)

- Moody's Investor Service said the Philippine banking system will likely suffer from "lower loan growth and declining margins" in the face of the economic downturn. (MALAYA, THE MANILA TIMES)

($1 = 48.35 Philippine pesos)

(Reporting by Karen Lema)