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Saturday, April 09, 2005
DBP to reduce rates on shipping loans
THE Development Bank of the Philippines (DBP) announced yesterday the reduction of the interest rates for shipping loans under the Road Roro Terminal System (RRTS) from 8.5 percent to 7.5 percent for missionary routes, and from 9.5 percent to 8.5 percent for commercial routes, fixed for the first three years.
In a statement, DBP president and chief executive officer Reynaldo G. David said this major policy shift was prompted by issues raised during the Strong Republic Nautical Highway (SNRH) conferences held in Cebu and Makati recently.
He said the bank is continually looking for ways to encourage more investments in the RRTS under the bank’s Sustainable Logistics Development Program (SLDP), one of DBP’s priority programs. This is also part of the bank’s commitment to speed up development initiatives in the countryside.
He, however, reiterated the need to retain the international classification of vessels to ascertain the structural and mechanical fitness of ships.
This, he explained, is critical in ensuring the quality of the vessels and the safety of passengers. The essence of DBP’s lending program for the shipping sector is to modernize and promote the safety of vessels in the domestic fleet.
David said the bank is working closely with the Maritime Industry Authority (Marina) in improving vessel inspection policies.
He also announced that the maximum repayment period can be stretched to 15 years, with a grace period of three years, subject to evaluation of the proponent’s cash flow. The loan value of classed vessels has also been increased from 50 percent to 60 percent.
The SLDP is an investment financing facility for a comprehensive and integrated transport system. The program supports the government’s Nautical Highways Network with its three components: the RRTS, Cold Chain and Grains Bulk Chain.
The program was designed to improve the country’s basic infrastructure so there may be more cost-effective and efficient movement of basic commodities.
Under the SLDP, the DBP is helping develop identified missionary routes, including those in Palawan province.
(April 9, 2005 issue)
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