BSP hopes for approval of charter amendments

CEBU, Philippines - The Bangko Sentral ng Pilipinas (BSP) Central Visayas hopes for the approval of the charter amendments to widen the scope and coverage of enhancing the delivery of credit particularly to the micro, small and medium-scale enterprises (MSMEs).

The proposed amendment is among the six priority measures that are currently pending at the House of Representatives.

It includes the proposal for additional capital to help BSP fully achieve its objectives especially of improving the lives of Filipinos by maintaining price stability and enabling the low levels to have access to banking and financial sectors.

BSP regional director Atty. Maria Lux Berciles said that the increased capitalization will assist the central bank to promote its programs that include the MSME development and improve the reach to its beneficiaries.

“For many years since 1993, it is about time there has to be revision of the law governing the BSP,” she said.

She added that such capital shall indirectly assist small-scale businesses through banks that has microfinance programs intended for MSMEs.

She cited for instance the First Agro-Industrial Rural Bank or commonly known as FairBank as highly active in assisting MSMEs in Cebu financially.

It was last December 2013 that the Aquino administration has released P10 million as the final tranche of the capital requirements of BSP amounting to P50 billion.

In 2011, the Department of Budget and Management (DBM) released P10 billion as a second tranche of the equity infusion and another P20 billion for the third one in 2012. In 1996, monetary authorities received P10 billion.

The equity infusion legally mandates the government to support BSP under the Republic Act 7653 or the New Central Bank Act of 1993.

Budget and Management Secretary Florencio Abad earlier pointed out that the completed equity infusion would allow BSP to expand its rediscounting facility and sustain the stable investment climate that could enable the government to achieve long-term and inclusive growth in the country.  — (FREEMAN)