DBP extends financing to Visayan fishers, exporters

The Development Bank of the Philippines (DBP) is pushing for more development in the Visayas by offering various financing programs aimed at helping improve the competitiveness of key industries in the region.

In separate investors’ meetings held at the Lâ Fisher Hotel in Bacolod City and at the Days Hotel in Iloilo City, DBP president and chief executive officer Reynaldo G. David said the government financial institution is liberalizing its financing facilities under its Sustainable Logistics Development Program (SLDP) to help improve the competitiveness of the fishing industry and other related businesses.

“We have dropped our interest rates to seven percent per annum for the first two years for SLDP projects such as cold storage facilities, refrigerated transport and related handling equipment, and other temperature-controlled facilities and equipment,” David stressed.

“We invite those engaged in the fishing industry, especially here in the Visayas, to take full advantage of these programs so that they can harness the potentials of their businesses,” he added.

Initiated in 2002, the SLDP is an investment financing facility for a comprehensive transport and related infrastructure and support services. It involves projects for the roll-on, roll off (roro) terminal system, grains highway and the cold chain highway, and aims to reduce the cost of transport and commodities, and promote more efficient and effective handling and storage of foods, especially perishables.

DBP has allocated an initial amount of P2 billion to support the modernization of the fishing industry.

The facility covers the acquisition of fishing boats and other support facilities such as fish carriers, modern fishing gear and equipment and cold chain/storage facilities.

Loan repayment is up to 10 years inclusive of a two-year grace period, with maximum loan amount of up to 80 percent of the total project cost.

“We want to make sure that our fishing vessels and related equipment are of the best quality so that the fishing industry in the Visayas remains a competitive and productive sector in the region,” David said.

David also said Visayas-based exporters can avail of DBP’s hedging program to cushion the negative effects of the rising peso on the export industry.

Exporters and consolidators for exporters may apply for the two products available under the program — foreign exchange (FX) insurance and forward FX rate protection.

“The FX insurance provides exporters the ability to benefit from peso depreciation or protect themselves from losses during peso appreciation. The forward FX rate protection, meanwhile, is a forward foreign exchange contract where only the net difference between the agreed dollar/peso forward rate and the market rate shall be settled at maturity,” he explained.

He said exporters may apply for the program at any of the DBP Regional Management Centers in Iloilo, Bacolod and Cebu.

Meanwhile, David encouraged local government officials and businessmen in the Visayas to partner with DBP in its various development programs. He added that DBP has lending facilities to support projects in infrastructure and logistics; social services; micro, small and medium enterprises; environment and commercial lending.