DTI boosts P3 fund­ing for MSMEs by P100 M


The De­part­ment of Trade and In­dus­try (DTI) added an­other P100 mil­lion loan fund for mi­cro, small and medium en­ter­prises (MSMEs) un­der the Pondo sa Pag­babago at Pag-asenso (P3) pro­gram.

This af­ter DTI re­newed its part­ner­ship with mi­cro­fi­nance non-govern­ment or­ga­ni­za­tion (NGO) Cen­ter for Agri­cul­ture and Ru­ral Devel­op­ment Inc. (CARD).

Un­der the mem­o­ran­dum of un­der­stand­ing (MOU) signed by the DTI and CARD, there will be an ad­di­tional P100 mil­lion fund avail­able for lend­ing to MSMEs on top of the ini­tial P100 mil­lion al­lo­cated ear­lier.

In a state­ment, DTI Sec­re­tary Ra­mon Lopez said CARD, which is con­sid­ered the big­gest mi­cro­fi­nance in­sti­tu­tion, would be a good credit de­liv­ery part­ner for the P3 pro­gram as it could reach ar­eas not usu­ally cov­ered by other part­ners.

He said CARD has sup­ported govern­ment ini­tia­tives to help mi­cro en­trepreneurs grow, par­tic­u­larly in the coun­try­side.

The loan fund is ex­pected to ben­e­fit over 20,000 MSMEs, in ad­di­tion to the cur­rent 41,800 MSMEs un­der the P3 pro­gram with CARD.

Apart from mak­ing avail­able an ad­di­tional P100 mil­lion, the MOU also cov­ers the con­duct of ori­en­ta­tion, devel­op­ment train­ings, liveli­hood and fi­nan­cial lit­er­acy to clients.

Un­der the P3 pro­gram, mi­cro en­ter­prises can avail of loans amount­ing to P5,000 to P200,000, de­pend­ing on the re­quire­ment and ca­pac­ity to pay.

Loans have an in­ter­est rate and ser­vice fees capped at 2.5 per­cent per month.

The govern­ment is im­ple­ment­ing the P3 pro­gram in line with Pres­i­dent Duterte’s di­rec­tive to en­able MSMEs to have ac­cess to fi­nanc­ing and re­move the “5-6” money lend­ing sys­tem.

In ex­change for get­ting loans with­out

col­lat­eral or any doc­u­men­tary re­quire­ments, bor­row­ers in the “5-6” sys­tem have to pay ex­or­bi­tant in­ter­est rates of 20 per­cent or even higher.

DTI through SB Corp. has so far as­sisted 50,500 mi­cro en­ter­prises un­der the P3 pro­gram.

A leg­isla­tive mea­sure to in­sti­tu­tion­al­ize P3 has been ap­proved on third and fi­nal read­ing at the House of Rep­re­sen­ta­tives, while the coun­ter­part mea­sure is pend­ing at the Se­nate.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.