Bank of China may extend soft loans to local micro-, small- and medium-sized enterprises (MSMEs) to help the Philippine government address one of the biggest hurdles hampering the sustained growth of local firms.
In an interview with the Inquirer, Philippine Chamber of Commerce and Industry George T. Barcelon (PCCI) said the group, the Department of Trade and Industry and the International Chamber of Commerce signed last week an agreement with the Bank of China primarily meant at conducting forums aimed at helping educate MSMEs about financing.
During the signing ceremony, Barcelon said the possibility of the state-owned bank extending soft loans was raised. He said the loans could be taken from the $3-billion credit facility the Bank of China opened to Philippine industries and conglomerates just last week.
“The Bank of China is active in many big companies and I think they realized … the importance of MSMEs in the Philippines. The [bank’s] chairman also related how China was able to grow, on how their MSMEs were also mentored and how they were able to generate jobs for the masses. So that’s our target here, inclusive growth and job creation,” Barcelon said.
“We explained to them that small companies find it hard to get financing from banks and they realized that one other way to help was for the Bank of China to roll out soft loans,” the PCCI chief said. He added the loan program was envisioned to help augment limited bank financing currently available to local MSMEs.
Access to financing is also one of the areas the DTI vowed to strengthen over the next six years under the administration of Mr. Duterte.