Friday, September 21, 2007 DBP gears for more loans for infra development
MANILA -- Infrastructure development and micro, small and medium enterprises MSMEs) in the country are expected to get a further boost as state-owned Development Bank of the Philippines (DBP) is making available P27.33 billion in loans for these sectors.
The amount is part of the total P48.07-billion loan portfolio for infrastructure and logistics and SMEs program set as of July 2007.
DBP president and chief executive officer Reynaldo G. David said the bank has directed its efforts towards modernizing the country’s major infrastructure backbone as it believes that an efficient and responsive infrastructure system is "key to enhancing the country's economic competitiveness."
To this end, the DBP aims to raise its developmental loans to 90 percent of its total loan portfolio from the present 60-percent rate. The remaining 40 percent would be allotted to commercial loans.
“I want to see more development-related projects. Our margins may become thinner but it’s all right as long as we drive our loans towards the development side,” said David.
For the MSMEs sector, the bank has been aggressively working to empower them through a practical mix of credit and non-credit assistance in the form of technical support involving marketing, research and development, business diagnosis and human resource development.
"Through its integrated program of assistance, DBP aims to help MSMEs uplift themselves, strengthen their capacities to create wealth for the nation, and contribute to Philippine development," he said.
"By providing much-needed financial and technical interventions, DBP hopes to break barriers, to reach out, to further empower, to help MSMEs in a more complete and responsive way," he added.
DBP's assistance to the sector continues to grow as total loan portfolio reached P10 billion as of June 2007. Beneficiaries reached 3,400 MSME borrowers.
To further enhance the competitiveness of MSMEs, the bank also extends technical support through a host of pioneering projects. (PNF)
