DBP’s IGLF approvals up 68% in 2003

Loan approvals under the Industrial Guarantee and Loan Fund (IGLF) reached P1.55 billion at the end of 2003, or 67.9 percent higher than the P923-million approvals in 2002.

The amount was the highest recorded by the fund since the 1997 Asian financial crisis.

The Development Bank of the Philippines (DBP) administers the IGLF, which are directly extended through accredited banks.

The DBP said 2003 was a banner year as it surpassed all targets. It was able to release P1.46 billion of the approved funding requirements, resulting in a net income of nearly P169 million.

"The active participation of DBP branches as well as the contributions of rural banks in the IGLF program resulted to a favorable ratio of loan releases for the regions outside NCR," the DBP said. "We expect the ratio to improve further this year as more DBP branches and rural banks are anticipated to avail of the IGLF funding facility," it added.

Eight accredited commercial banks contributed P1 billion or over 60 percent of the total releases.

The top three banks in terms of the number of accounts submitted and amount released were the Metropolitan Bank and Trust Co. (Metrobank), the Bank of the Philippine Islands (BPI) and China Banking Corp. The latest addition to the growing list are Asia United Bank (AUB) and Chinatrust Philippine Commercial Bank.

In the thrift bank category, Planters Development Bank had total releases of P224 million. Anchor Bank and Unity Bank contributed an aggregate of 11 accounts amounting to P44 million.

Other thrift banks and rural banks will be accredited under the IGLF sponsorship and rediscounting programs from marketing and economic viewpoints. Last year, 10 rural banks and two thrift banks availed of IGLF and contributed P82 million.

"The campaign to accredit rural banks under IGLF is the latter’s contribution to the call of the national government to promote micro and SME loans," said Panser E. Tumangan, IGLF chief executive officer and DBP senior executive vice president.