NDC urged to allot P1-B for franchise industry

Former Trade and Industry Secretary Jose T. Pardo, who is also the founding chairman of the Philippine Franchise Association (PFA), urged yesterday the National Development Corp. (NDC) to allocate at least P1 billion from its planed sale of NDC bonds for the franchise industry.

According to Pardo, the franchise industry is a growing sector that requires financing. The franchise industry insulates business from a hostile marketplace," he said, adding that "with the franchise industry remaining one of the bright spots in the economy, government should help the industry."

The NDC is planning to float another P7 billion worth of bonds before the year ends.

Proceeds of the bonds are intended to finance the government agrarian reform program as well as housing and to finance small and medium enterprises.

Samie Lim, current chairman of the PFA, also disclosed that the franchise industry is exploring possible financing from the Overseas Private Investment Corp. (OPIC).

The OPIC is a small independent US government agency established in 1971. It supports US foreign-direct investments in approximately 145 developing countries.

Lim said the franchise industry is an area of growth especially for the Asian region in view of the depressed markets in Europe and the United States.