DBP wholesale loans jump 70% in 2003

The Development Bank of the Philippines (DBP) reported yesterday its wholesale loans grew by 70 percent to P10.53 billion in 2003 from P7.4 billion in 2002

Total loan releases last year amounted to P10.24 billion for more than 200 projects.

DBP’s total loan portfolio amounted to P82.92 billion in 2003. Of this amount, P44 billion was allocated for retail lending and another P38.8 billion for wholesale.

DBP president and chief executive officer Simon R. Paterno said the government financial institution (GFI) still has available P57 billion in official development agency (ODA) funds to support investments in priority sectors.

"To date, 91 percent of the total number of projects we have financed have been in the micro, cottage, and SME sector," Paterno said Wednesday night during the formal ceremonies recognizing DBP’s partners in funding and lending.

The GFI taps the ODA funding market for wholesale lending while it uses various conduit banks for re-lending.

Among the consistent multilateral agencies that have assisted DBP are the Japan Bank for International Cooperation (JBIC), the World Bank, Kreditanstalt fur Wiederaufbau (KfW) of Germany, and the Asian Development Bank (ADB).

Last Wednesday, DBP signed a subsidiary loan agreement with the ANZ Banking Group Ltd. (Philippine branch) and the Bank of Tokyo-Mitsubishi Ltd. (Manila branch). The accord enrolls the two foreign banks as the newest members of its network of participating financial institutions (PFIs).

Paterno said that 2004 lending will remain focus on infrastructure development.