DBP loans for rehabilitation and recovery hit P8.5B
MANILA, Philippines—State-owned Development Bank of the Philippines (DBP) has approved P8.5 billion in funding support for the rehabilitation efforts of public and private institutions hit by the current public health crisis, a top official said.
In a statement, DBP President and CEO Emmanuel Herbosa said for the first six months of 2021 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 enterprise recovery.
“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,” he 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 or force majeure events including typhoons, floods, drought, pest and disease infestations, earthquakes, peace and order problems and similar events resulting in significant socioeconomic damage.
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 and government corporations such as water districts, state universities and colleges.
“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 said.
The DBP Response subprogram for small businesses, meanwhile, offers low interest and flexible terms to duly registered medium enterprises, including start-ups and cooperatives engaged in agri-fishery and nonessential businesses.
It also covers wholesale lending to rural banks, thrift banks, microfinance-oriented banks, and nonbank financial institutions including cooperatives and microfinance institutions, for relending to MSME borrowers.
He said under this program, 60 borrowers have availed themselves 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.
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