DBP lending grows 18.13% to P112.9B as of end-Sept

MANILA, Philippines - The Development Bank of the Philippines (DBP) boosted its lending by 18.13 percent to P112.9 billion end-September this year, from P95.5 billion a year earlier as more loans were funneled into priority sectors.

Of the total, P103.5 billion went to priority development projects, of which P62.3 billion went to infrastructure and logistics, environment, micro, small and medium enterprises (MSME), and social services.

Infrastructure and logistics accounted for 26.88 percent of total lending to priority areas. Majority of the loans were utilized for projects in the Cordillera Autonomous Region (CAR), Central Visayas, Southern Tagalog, Southern Mindanao, Cagayan Valley and the National Capital Region (NCR).

DBP president and chief executive officer Francisco F. Del Rosario Jr. said the state-run financial institution “will continue to strengthen its assistance to key sectors of the economy and in the process, assist the Aquino administration in enhancing the business climate in the country.”

“DBP’s activities remain directed towards developmental initiatives,” he added.

DBP extended P13.5 billion to the MSME sector representing 12 percent of total loans. These loans found its way to Eastern and Western Visayas, Southern Tagalog, Central Luzon and NCR.

Social services bagged P1.2 billion from the priority area loans or 9.9 percent of total. Projects funded for social services were in Southern Mindanao, Bicol region, Southern Tagalog, NCR and Central Luzon.

Environment borrowings amounted to P7.1 billion or 6.32 percent of total lending.

Meanwhile, P41.3 billion were extended to other developmental or second-priority areas, which represented 36.5 percent of total lending this year. These secondary areas are in construction, manufacturing, wholesale and retail trade, and agriculture.

The manufacturing sector accounted for P13.2 billion and the wholesale and retail trade another P13.2 billion.

Commercial loans reached P9.3 billion or 8.22 percent of total lending in the first nine months of 2011.