PhilGuarantee increases its portfolio of MSME guarantees in February
THE Philippine Guarantee Corp. (PhilGuarantee) increased the amount of loans it guarantees to micro, small and medium-sized enterprises (MSMEs) to 952.5 million pesos by the end of February 2021.
The amount is 360 percent higher than the amount of 207 million pesos in December 2020.
In a report to Finance Secretary Carlos Dominguez III, PhilGuarantee also said that the number of beneficiary MSMEs increased by 200% to 8,839 in February 2021 from 2,948 in December 2020.
“The implementation of improved processing and assessment parameters from this year has led to this remarkable increase in the number of beneficiaries under the MSME Credit Guarantee Program (MCGP)”, said Alberto Pascual, President -director general of PhilGuarantee, in his report.
He said the number of beneficiary MSMEs rose to 8,839 in February, 90% more than 4,649 in January.
A total of 952.5 million pesos in MSME loans guaranteed as of February 28 came from 10 accredited banks and financial institutions.
Since the implementation of the MGCP began last year, the board of directors of PhilGuarantee chaired by Dominguez has approved a total of 37.7 billion pesos of credit guarantee facilities to 34 banks. At least 22 banks are currently actively submitting loan applications to MSMEs for a credit guarantee.
“The approval of the credit guarantee facilities has enabled the availability and accessibility of credit to banks that would otherwise have been reluctant to lend to MSMEs due to the uncertainties that reigned with the onset of the Covid-19 pandemic,” said said Pascual.
Under Republic Law 11494 or the Bayanihan to Recover as One Act (Bayanihan 2), MSMEs represent P 2 billion of the P 5 billion allocated to PhilGuarantee to help businesses affected by the pandemic.
The Bayanihan 2 allocation allowed PhilGuarantee to further expand its margin of guarantee of economic activities and extend its assistance to viable but severely affected MSMEs, said Pascual.
In terms of industry breakdown, the bulk of loans guaranteed for MSMEs in February 2021 went to enterprises active in wholesale and retail trade (723 million pesos); manufacturing monitoring (P 83.6 million); and transport, storage and communication (65 million pesos).
For 2021, Pascual said PhilGuarantee aims to increase the portfolio of guaranteed loans to MSMEs to 4 billion pesos. (RP)