THE Philippine Guarantee Corp. (PhilGuarantee) has increased the amount of loans it guaranteed for micro, small and medium enterprises (MSMEs) to P952.5 million as of end-February 2021.
The amount is higher by 360 percent than the P207 million as of December 2020.
In a report to Finance Secretary Carlos Dominguez III, PhilGuarantee also said the number of MSME beneficiaries grew by 200 percent to 8,839 in February 2021 from 2,948 in December 2020.
“The implementation of improved processing and evaluation parameters starting this year led to this remarkable increase in the number of beneficiaries under the MSME Credit Guarantee Program (MCGP),” PhilGuarantee president-CEO Alberto Pascual said in his report.
He said the number of MSME beneficiaries increased to 8,839 in February, 90 percent higher than 4,649 in January.
A total of P952.5 million in MSME loans guaranteed as of Feb. 28 were from 10 accredited banks and financial institutions.
From the start of the MGCP’s implementation last year, the PhilGuarantee Governing Board chaired by Dominguez has approved a total of P37.7 billion in credit guarantee facilities to 34 banks. At least 22 banks are now actively submitting MSME loan applications for credit guarantee.
“The approval of the credit guarantee facilities enabled the availability and accessibility of credit from banks that would have otherwise been reluctant to lend to MSMEs owing to the uncertainties that prevailed with the onset of the Covid-19 pandemic,” Pascual said.
Under Republic Act 11494 or the Bayanihan to Recover as One Act (Bayanihan 2), MSMEs account for P2 billion of the P5 billion appropriated for PhilGuarantee to aid pandemic-hit enterprises.
The Bayanihan 2 allocation allowed PhilGuarantee to further widen its guarantee headroom of economic activities and extend more assistance to viable but severely affected MSMEs, Pascual said.
In terms of distribution by industry, the bulk of the guaranteed loans for MSMEs as of February 2021 went to enterprises engaged in wholesale and retail (P723 million); followed by manufacturing (P83.6 million); and transport, storage and communication (P65 million).
For 2021, Pascual said PhilGuarantee is targeting to grow the portfolio of guaranteed MSME loans to P4 billion. (PR)