DBP sees loans of over P79-B this year

The Development Bank of the Philippines (DBP) is looking forward to extending loans of more than P79 billion this year, surpassing its loan portfolio of P78.84-billion in 2001.

This is because last year’s portfolio reflected a slowdown in borrowings due to weak economic activity and the aftermath of the Sept. 11 terrorist attacks on the US.

The lending mix is expected to be dominated by wholesale lending just as in the previous year.

Last year, wholesale lending accounted for more than 50 percent or P42.42 billion of total loans while retail borrowing reached at P21.10 billion.

As expected, P20-billion was tapped by the small-and-medium enterprises (SMEs) sector as the large corporates decided to postpone borrowings.

"The DBP made a significant headway in assisting the SMEs through a focused approach in combining credit and non-credit assistance to the sector," it said in a press statement. In fact, it created an SME department for emphasis.

Eighty percent of the total loan portfolio came from official development assistance (ODA) sources such as the Asian Development Bank (ADB), the World Bank, the Japan Bank for International Cooperation (JBIC), the Norwegian Agency for Development Cooperation, and German financial institution, KfW.

Long term funds for project financing to banks and financial institutions reached 147 accredited financial institutions broken down into 29 commercial banks, seven foreign banks, 24 non-bank financial intermediaries, 18 private development banks, 47 rural banks, 21 savings and mortgage banks, and one special government bank, the Land Bank of the Philippines (LBP).

It was able to extend P400 million for micro-enterprises.

The bank assisted several projects and programs in the area of information technology, infrastructure, water utility, environment, energy, domestic shipping, and social services projects.

It participated in the LGU Urban Water and Sanitation Project worth $30 million covering 40 local government units (LGUs) benefiting an estimated 800,000 residents.

It participated in the 32.5 billion yen IT and industry support loan which would provide funding support to priority industries such as information and communication technology, manufacturing, construction, power, utilities, transportation and infrastructure.

In cooperation with the Nordic Investment Bank, the DBP assisted in the 20 million deutsche marks for the procurement of goods from Nordic countries.

It likewise extended a P500 million funding facility for the Social Security System (SSS) in support of the housing real estate development sector and SME borrowers.