THE DEVELOPMENT Bank of the Philippines (DBP) is looking to hike lending to micro, small and medium enterprises (MSMEs) next month as lawmakers start discussions on a stimulus fund for the sector.
DBP expects to extend P39.14 billion in loans in September, which will add to the P3.2-billion for 131 MSME accounts the DBP approved from March 15 to June 30 this year.
“Based on the applications received so far and additional prospects identified, we expect to process no less than 401 transactions with an estimated loan amount of P39.14-billion,” Development Bank of the Philippines President and Chief Executive Officer Emmanuel G. Herbosa said in an email message.
“The BDP has identified that the MSME sector is one of the sectors most impacted by the pandemic. By providing financial assistance to MSMEs, through the grace period and option for loan deferment or loan restructuring, DBP has provided the additional credit that they need in order for them to survive or recover their operations and sustain their cash flow,” Mr. Herbosa said.
To serve more MSMEs, lawmakers proposed the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) which aims to provide a P55-billion fund to the DBP, Land Bank of the Philippines and Philippine Guarantee Corporation to help MSMEs sustain economic activities.
The House Committee on Ways and Means recently approved a substitute for the GUIDE bill after lawmakers considered it as a separate stimulus fund from the P165-billion aid under the second round of Bayanihan To Recover As One Act or Bayanihan II. — Kathryn Kristina T. Jose