DBP allots P1.1B for MSMEs

MANILA, Philippines - To support the inclusive growth strategy of the government, the state-owned Development Bank of the Philippines (DBP) has set aside P1.1 billion for relending to micro, small and medium enterprises (MSMEs).

DBP president and chief executive officer Gil A. Buenaventura said the loan facility will go to three participating financial institutions under the bank’s wholesale lending program as part of efforts to boost economic growth by supporting MSMEs.

Buenaventura said they have extended a P500-million clean revolving credit line to Radiowealth Finance Co. Inc. (RFC) to support the livelihood programs of its members including production, agricultural and micro-agricultural activities.

RFC has 91 branches and 58 business centers which cover 86 percent of the total 1,469 cities and municipalities nationwide. It offers livelihood and business loans, consumer loans, salary loans, and franchising loans to more than 40,000 borrowers.

A P300-million clean revolving credit line, on the other hand, was granted to Philippine Resources Savings Banking Corp. (PR Savings Bank) for relending to and investment in eligible MSME projects, including public school teacher loans with livelihood projects.

PR Savings Back has 47 branches and 46 extension and field offices nationwide. It grants salary loans to public school teachers, motorcycle loans, and agricultural machinery loans to improve the productivity and incomes of farmers.

DBP likewise approved a P300-million credit line for the Bank of Makati (BMI) for relending to MSMEs. The largest rural bank in the country, BMI has 19 branches and 27 loan centers located in key cities nationwide.

The state-run financial institution has been mandated to support small and medium enterprises (SMEs).

This year, it plans to expand to offer customer-oriented products and services and increase business lines to fulfill its SME mandate.

In 2013, DBP posted a 28 percent increase in net income to P5.28 billion from P4.13 billion in 2012, buoyed by significant increases in deposits, loans to borrowers, and investments.

Aside from SMEs, DBP also provides funds for projects under the Public Private Partnership (PPP) program of national government agencies. It now plans to expand its PPP financing program to include projects of local government units.

Aside from MSMEs, DBP also continues to provide financing to projects in the priority areas of infrastructure and logistics, social services, and protection of the environment.

This year, DBP will increase its number of branches to 102 and expand the number of its ATMs in key locations nationwide.