Sun.Star Pampanga

DBP extends P8.5-B in rehabilita­tion, recovery financing

(PR)

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CITY OF SAN FERNANDO---St at eowned Developmen­t Bank of the Philippine­s (DBP) has approved P8.5-billion in funding support for the rehabilita­tion efforts of both public and private institutio­ns adversely affected by the current public health crisis, a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said for the first six months of the year the bank has extended financing support to 90 firms under its Rehabilita­tion Support Program on Severe Events (RESPONSE) and its sub-program DBP RESPONSE to accelerate Micro-Small and Medium Enterprise­s (MSME) Recovery.

"The DBP RESPONSE will continue to be the bank’s centerpiec­e program to encourage private businesses and public institutio­ns to rebuild, rehabilita­te, recover and to resume operations, thereby boosting the government’s national recovery program,” Herbosa said.

DBP is the fifth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastruc­ture and logistics; micro, small and medium enterprise­s; environmen­t; social services and community developmen­t .

The DBP RESPONSE also provides rehabilita­tion financing support to DBP and non-DBP borrowers stricken by calamities and/ or force majeure events including typhoons, floods, drought, pest and disease infestatio­ns, earthquake­s, peace and order problems, and other similar events resulting to significan­t socio-economic damages.

Herbosa said under the DBP RESPONSE, 30 borrowers have been granted new loans totaling almost P4.8-billion with the majority located in Luzon and engaged in the accommodat­ion and food service industries, wholesale and retail trade, public administra­tion and defense, manufactur­ing, financial and insurance activities, and other service activities.

He said the program caters to private institutio­ns including enterprise­s, corporatio­ns, cooperativ­es, associatio­ns, schools, hospitals, and financial institutio­ns as well as local government units (LGUs) and government corporatio­ns such as water districts, state universiti­es and coll eges.

“DBP RESPONSE offers a longer repayment period of up to 15 years, inclusive of a three-year grace period, for public borrowers and up to 10 years with a three-year grace period for private institutio­ns,” Herbosa sai d.

The DBP RESPONSE – MSME RECOVERY subprogram offers low interest and flexible terms to duly registered medium enterprise­s, including start-ups and cooperativ­es engaged in agri-fishery and non-essential businesses. It also covers wholesale lending to rural banks, thrift banks, microfinan­ce-oriented banks, and non-bank financial institutio­ns including cooperativ­es and microfinan­ce institutio­ns, for relending to MSME borrowers.

He said under the DBP RESPONSE – MSME RECOVERY, 60 borrowers have availed of funding assistance amounting to P3.7-billion, with 24 projects located in Mindanao, 21 in the Visayas, and 15 in Luzon that included firms engaged in wholesale and retail trade; financial and insurance activities; agricultur­e, forestry and fishing; and accommodat­ion and food service industries.

He said local businesses, LGUs, and other government entities should avail of the opportunit­y to future-proof their operations and enhance resiliency as the country girds for postpandem­ic recovery.

“DBP is poised to provide strategic assistance to our developmen­t partners in the business community and to fellow government institutio­ns as they improve current systems and boost continuity programs to mitigate the impact of future crisis situations,” Herbosa said.

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