MANILA, Philippines – The state-owned Development Bank of the Philippines (DBP) has approved P8.5 billion in financial support for the rehabilitation efforts of public and private institutions affected by the current public health crisis, a senior official said.
In a statement, DBP President and CEO Emmanuel Herbosa said that during the first six months of 2021 the bank has extended financial support to 90 companies under its Severe Event Rehabilitation Support Program (Response ) and its subprogram DBP Response to Accelerate Small Micro and Medium Business Recovery.
“DBP Response will continue to be the bank’s core program to encourage private companies and public institutions to rebuild, rehabilitate, recover and resume operations, thus driving 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.
DBP Response also provides financial rehabilitation support to DBP and non-DBP borrowers affected by catastrophes or force majeure events, including typhoons, floods, droughts, pests and diseases, earthquakes, peace and order issues, and similar damage-causing events. socio-economic important.
Herbosa said that under the DBP Response, 30 borrowers have received new loans totaling almost P4.8 billion, the majority located in Luzon and dedicated to the lodging and food service industries, wholesale and retail trade, public administration. and defense, manufacturing, finance and insurance activities and other service activities.
He said the program is aimed at private institutions, including businesses, 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, including 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 for duly registered medium-sized companies, including new companies and cooperatives dedicated to fishing and non-essential businesses.
It also covers wholesale loans to rural banks, savings banks, microfinance-oriented banks, and non-bank financial institutions, including cooperatives and microfinance institutions, for lending to MSMEs.
He said that under this program, 60 borrowers have availed themselves of financial assistance in the amount of P3.7 billion, with 24 projects located in Mindanao, 21 in Visayas and 15 in Luzon that included companies dedicated to the wholesale and retail trade; financial and insurance activities; Agriculture, forestry and fishing; and lodging and food service industries.
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