To help more entrepreneurs: DBP adds 51 branches this year

CEBU, Philippines - In order to help more small and medium entrepreneurs especially exporters, the Development Bank of the Philippines (DBP) plans to add 51 more branches this year.

This was announced by DBP senior vice president for branch banking sector Dulce Rañoza during the Export Development Council (EDC) and National Competitiveness Council (NCC) sponsored seminar held recently in Cebu.

The seminar was aimed at establishing more awareness on financing programs available to micro, small and medium enterprises (MSMEs), and bridging the gap between banks and MSMEs on access to financing particularly for the recovery from global financial crisis.

Rañoza earlier said businesses can access low-cost borrowing despite the absence of acceptable collateral through the Bangko Sentral ng Pilipinas’ Credit Surety Fund (CSF).

Rañoza said local government units, financial institutions, cooperatives, the International Loan Guarantee Fund (IGLF) manage the surety fund that will be deposited entrust to a financial institution like the DBP.

“The borrowers who are members of the cooperatives can apply for loans from financing institutions or any bank provided the cooperative will endorse the borrower or the member to the oversight committee usually in these financial institutions. In case of default that the cooperative member cannot pay the loan, the surety fund will cover the payment for the loan,” she explained.

The Credit Surety Fund operates at the provincial level and has been launched in Cavite, Aurora and Bohol. The BSP will next introduce the fund in Davao and eventually in some key areas in the Visayas and Mindanao.

In April of this year, exporters and some players in the local banking industry had dialogue to discuss mutually beneficial solutions on credit availability and borrowers’ worthiness, amid the challenging environment in the export sector.

Reportedly, exporters complained that some banks have threatened to call on some distressed loan accounts on account of the deteriorating export markets abroad.

Various Business Support Organizations (BSOs) are urged to take advantage of the financial support offered by government financial institutions (GFIs), in partnership with member-business owners.

GFIs are now dishing out their different loan facilities highlighting a “no collateral” requirement, amid the industry-wide complaint that loan availability via GFIs are good as “nothing” because of highly difficult (to comply) requirements. Under a wholesale lending program, BSOs could serve as conduit in providing loans assistance to their members.

In Cebu, there are a number of BSOs in various industries like PhilExport, Fashion Accessories, Furniture, seaweed processors, among others.

DBP is one of the largest GFIs, and the fourth largest bank in the Philippines. At present, it has 128 branches all over the country.