Duterte approves merger of state guarantee firms
President Rodrigo Duterte has approved the merger between the Home Guarantee Corporation (HGC) and Philippine Export-Import Credit Agency (PhilEXIM) to “prevent operational redundancies.”
Executive Secretary Salvador Medialdea, by the authority of the President, signed Executive Order No. 58 on July 23, ordering the merger of the two state guarantee firms.
“The HGC shall be merged with the PhilEXIM, including all its guarantee functions, programs, personnel, assets, and liabilities. The PhilEXIM shall be the surviving entity in the merger,” the order read.
The order also transferred to PhilEXIM, which will be renamed Philippine Guarantee Corporation (PHILGUARANTEE), the guarantee functions, programs, and funds of these agencies:
- Small Business Corporation (SBC),
- Agricultural Guarantee Fund Pool (AGFP), and the
- Industrial Guarantee and Loan Fund (IGLF).
All qualified officers and affected personnel of the three affected agencies will be given separation pay on top of existing retirement or separation benefits.
The approved capital stock of the PHILGUARANTEE will be increased from P10 billion to P50 billion.
According to E.O. 58, the merger will prevent operational redundancies, standardize policies, facilitate timely approvals, and lower administrative costs.
The merger will be implemented by the Department of Finance in consultation with the Department of Agriculture (DA), Housing and Urban Development Coordinating Council (HUDCC), Department of Trade and Industry (DTI), Land Bank of the Philippines (LBP), and the Development Bank of the Philippines (DBP). — Syrah Vivien Inocencio, INQUIRER.net Intern/vvp
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