But project conduit the Development Bank of the Philippines (DBP) said that the amount could be increased further depending on the market demand.
Eufemia C. Mendoza, DBP vice president for window III said that the bank’s board has expressed willingness to consider additional program loans for microenterprises.
"If the demand is higher than the present amount of P400 million, the DBP board of directors is willing to bring it higher," Mendoza told The STAR.
She added that the P400 million is only an initial amount, which was not limited for the calendar year 2002.
Microfinancing has been brought to the fore after the State of the Nation (SONA) address last year of President Arroyo which emphasized on countryside development and poverty alleviation programs.
As a direct result, Malacañang formed the so-called SONA committee composed of representatives of different government agencies one of which were government financial institutions (GFIs).
Mendoza said that they have been reporting directly to the SONA committee on develops towards microfinancing which also involves the Land Bank of the Philippines (LBP).
The DBP puts more emphasis on lending to microenterprises geared towards manufacturing, services and trading while the LBP includes agriculture and agri-business.
The DBP has accredited a large number of MFIs, which in turn are the vehicles for lending. MFIs are rural banks, cooperatives banks, thrift banks, development banks, savings and loan associations, credit unions, cooperatives and non-government organizations (NGOs). – TPT