DBP earmarks P2B for SME lending

The Development Bank of the Philippines (DBP) has allocated P2 billion for the Industrial Support and Services Expansion Project (ISSEP) II loan portfolio.

The ISSEP is a credit facility funded by the Japan Bank of International Corp. (JBIC) for the small-and medium enterprises (SMEs) sub sector.

Known as "Financing Plus", ISSEP II specifically provides credit plus business diagnostics and advice, business brokering (like franchiser and franchisor, supplier and buyer) training and other services to sub-sectors through organized industry groups.

The most recent recipient beneficiary is the tool, die and mold manufacturing sector considered a backbone of industry. It supplies critical components of all processing and assembly industries.

DBP officials said the demand for the tool, die and mold industry is worth $250 million. However, local companies numbering over 600 supply less than 10 percent of the demand.

"We are determined to focus on priority borrowers or the small and medium enterprises who, with the infusion of more funds, can enter new markets, go into export, develop new products, generate more employment, build forward and backward linkages, and contribute to building the national economy," DBP president and chief executive officer Remedios L. Macalincag said.

Last Aug. 8, the Philippine Die and Mold Association (PDMA) and the DBP signed an agreement for the conduct of factory diagnostics and extension of other assistance to tool, die and mold manufacturers belonging to the association, under the technical assistance component feature of the ISSEP II project. – Ted Torres