DBP to boost lending to co-ops, MSMEs, agri ventures
The Development Bank of the Philippines (DBP) has tied up with the Cooperative Development Authority (CDA) in a bid to strengthen cooperative enterprises in the country through improved access to bank financing opportunities and capacity building initiatives.
In a statement, the state-owned financial institutions said it had signed a memorandum of agreement with the CDA to give the latter access to the bank’s credit programs, as well as to training programs on financial and operational management.
“DBP is pleased to partner with CDA in this initiative as we could efficiently further reach out to more cooperative enterprises in the country that need both financing opportunities and mentoring support,” said Emmanuel Herbosa, president and CEO of DBP.
DBP is the sixth 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 (MSME); the environment, and social services and community development.
CDA is the lead government agency responsible for promoting the sustained growth and full development of cooperatives around the country. Based on latest government data, there are about 18,065 cooperatives registered with the CDA.
Herbosa said that under the agreement, DBP would offer financing assistance to eligible cooperatives initially under three programs, namely, the Expanded Rice Credit Assistance Under Rice Competitiveness Enhancement Fund, the DBP Response to Accelerate MSME Recovery, and the Department of Agriculture’s Credit Policy Council-DBP BuyANIhan credit program.
He said CDA would help DBP identify cooperatives that were ready to apply for the bank’s financing assistance to ensure project viability and sustainability.
The rice credit assistance scheme is a credit facility to support rice farmers and their cooperatives, while the DBP Response-MSME Recovery program seeks to accelerate the recovery of micro, small and medium enterprises amidst the economic slowdown caused largely by the ongoing pandemic.
On the other hand, the BuyANIhan credit program aims to elevate direct engagement of rice cooperatives in the industry value chain by providing credit access to working capital requirements.
