India offers $1-B credit facility to Phl

India is encouraging the Philippines to tap its $1-billion credit facility to fund the Duterte administration’s Build Build Build and digital infrastructure projects, the Department of Finance (DOF) said yesterday.

Jaideep Mazumdar, Indian ambassador to the Philippines, told Finance Secretary Carlos Dominguez in a recent meeting that India “would be happy to offer” the Philippines an access to this $1 billion loan facility.

The DOF said the fund was set up to support membercountries of the Association of Southeast Asian Nations (ASEAN) and to promote physical and digital connectivity within the region.

Mazumdar also told Dominguez during the same meeting that Indian companies remain bullish on the Philippines’ growth prospects.

He said Indian businesses are interested to expand their investments in the country, particularly in the infrastructure and pharmaceuticals sectors.

In response, Dominguez said Indian companies are welcome to enter the Philippines, especially in the areas of infrastructure and tourism.

The finance chief urged India to set up its international hotel brands in the country.

He also cited the financial technology (fintech) sector as another area that India can tap and help develop.

He said utilizing digital innovations would help improve the access of Filipinos to banking and insurance services and make electronic payment systems available to small and medium enterprises, in line with the Duterte administration’s goal of greater financial inclusion.

Dominguez cited as an example the Overseas Filipino Bank (OFB), which he said should be transformed into a digital bank.

“It doesn’t make sense to establish branches in all main countries where Filipinos are; we want to do it digitally and we will welcome a proposal from the Indian group for that. We have at least 10 to 11 mil- lion Filipinos living abroad,” Dominguez said.

To encourage more foreign direct investments from India, Dominguez informed Mazumdar that the Philippines is now in the process of improving its corporate tax system to make it “simpler, fairer and more efficient.“

During the meeting, Dominguez also brought up the possibility of sending DOF personnel to India for a training program.

Mazumdar said India can offer short courses in areas, such as ASEAN development and empowerment of micro, small and medium enterprises (MSMEs), or business programs at the India School of Business.