Merger of state guarantee firms up for Palace OK
The plan to establish a single government guarantee system moved one step closer as the Governance Commission for Government-Owned or -Controlled Corporations (GCG) yesterday endorsed for President Duterte’s approval the consolidation of four state-run firms into the Philippine Export-Import Credit Agency (PhilExim).
Budget Secretary Benjamin E. Diokno, an ex-officio member of the GCG, told the Inquirer that they had approved to consolidate the guarantee functions, programs, funds, assets and liabilities of the Agricultural Guarantee Fund Pool (AGFP), Industrial Guarantee and Loan Fund (IGLF), Home Guaranty Corp. (HGC) and Small Business (SB) Corp. into PhilExim.
“The Department of Finance will implement the consolidation in consultation with Land Bank of the Philippines, Development Bank of the Philippines, the Department of Trade and Industry , the Department of Agriculture (DA), the National Economic and Development Authority (Neda), and the Housing and Urban Development Coordinating Council (HUDCC),” Diokno said.
At present, the DA oversees AGFP; IGLF is under the Neda; HGC under HUDCC; SB Corp. under the DTI, and PhilExim under the DOF.
An executive order has been drafted for the Office of the President’s approval, Diokno added.
In general, guarantee corporations shield customers or investors against financial losses.
According to the DOF website, PhilExim was tasked to “stimulate, increase and develop the export of goods and services, and to facilitate investment in strategic sectors for the country’s development by extending guarantees, insurance, credit and related technical assistance services to viable enterprises.”—BEN O. DE VERA
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