Oro SMEs among those given access to capital

MANILA -- In line with United States Government’s continuing efforts to promote broad-based and inclusive economic growth in the Philippines, the US Embassy announced on Thursday a new credit facility that will provide increased access to capital for the small and medium sized enterprises (SMEs) in the country.

US Ambassador Harry K. Thomas Jr. and US Agency for International Development (USaid-Philippines) mission director Gloria D. Steele launched the eight-year, $35-million credit facility together with Aurelio Montinola III, President and CEO of the Bank of the Philippine Islands (BPI) and Jose Teodoro Limcaoco, President of BPI Family Savings Bank (BFSB).

“This credit facility will help expand access to capital for Filipino entrepreneurs to allow them to improve and develop their businesses. More importantly, increased access to credit will encourage the creation of more businesses, resulting in more employment opportunities and increased income for Filipinos,” Ambassador Thomas said.

The facility will encourage lending to SMEs in three cities outside Metro Manila that are the focus of USAid’s Cities Development Initiative (CDI), namely: Batangas, Iloilo and Cagayan de Oro.

An integral part of the US-Philippines Partnership for Growth (PFG), the CDI focuses on promoting growth in cities identified for their growth potential, to unlock and maximize the country’s potential.

“USAid’s partnership with BPI and BFSB aims to stimulate targeted domestic commercial investment and increase the number of start-up businesses in the CDI cities and surrounding areas. With an eight-year coverage and five-year enrollment period, the credit facility will help reduce SME collateral requirements and allow entrepreneurs to explore new markets,” said Steele.

“BPI and BPI Family Savings Bank have long engaged in endeavors centered on helping SMEs to bring progress to the whole economy. We remain at the forefront in empowering ‘up and coming’ Filipino businessmen to succeed in entrepreneurial activities that can help narrow socio-economic gaps and stimulate growth from the bottom up," Montinola said.

The credit facility is a key component of a broader US government effort to promote broad-based and inclusive growth in the Philippines under the PFG.

Launched in November 2011 by US Secretary of State Hillary Clinton and Philippine Foreign Affairs Secretary Albert del Rosario, the PFG will help the Philippines move to a higher, sustained and more inclusive growth trajectory in line with other high-performing economies. (PR)