Sunday, February 28, 2016
PAEZ EYES P200B FOR MSMEs
Daang Matuwid coalition senatorial bet, Congressman CRIS "MR. COOP" PAEZ welcomed the proposal of a presidential candidate to earmark P1-billion per region credit facility for micro, small and medium enterprises (MSMEs), but added that the present administration has a better program in place and which needs to be sustained.
Under the Daang Matuwid, a P200-billion loan fund is doable.
What needs to be sustained are the programs under the Daang Matuwid which offers direct assistance to poor families and MSMEs.
Among these are the Sustainable Livelihood Program of the Department of Social Welfare and Development (DSWD), which offers "graduates" of the 4Ps or those 4Ps beneficiaries who are ready to become micro or small entrepreneurs.
The bigger opportunity for MSMEs, Paez said, is the newly-signed Credit Surety Fund Cooperative Act of 2016 or R.A. 10477. Under the new law passed under the Aquino administration, and principally-authored by Paez, MSMEs can now loan from banks without collateral.
This collateral-free system is made possible by the setting up of a Credit Surety Fund by cooperatives, the Landbank, DBP, the Industrial Loan Guarantee Fund, and the Bangko Sentral ng Pilipinas. Whatever fund is raised under CSF translates to a ten-fold loan fund for MSMEs.
The target for this year is to make available at least P5-billion in MSME loan fund.
Paez said that he would propose that a significant portion of the planned P100-billion fund for an enhanced Bottom-up Budgeting being proposed by the administration standard-bearer, Mar Roxas, be earmarked as government contribution to the CSF.
"I will propose P20-billion government counterpart to the CSF, which could be sourced from President Roxas' P100-billion Enhanced BUB Fund and that could translate into P200-billion funds for CSF," Paez said.
Under this program, inclusive growth will have broader and par deeper impact, he said. (END).