Cebu, Leyte traders seek government aid for rehab

CEBU, Philippines - Economic players of Cebu and Leyte who have been victims of the super typhoon Yolanda appeal to the government for assistance in the rehabilitation of their businesses and in the payment of their loans to financial institutions.

Filipino-Cebuano Business Club President Rey Calooy said in an exclusive interview with The FREEMAN that most of the businessmen in Leyte and Cebu are having a hard time in resuming their operations especially in paying off their bank loans.

Calooy is also the board director of the Leyte Business Club (LBC) which is the Leyte chapter of FCBI. Moreover, he serves as the vice-mayor of Libagon, Southern Leyte.

Calooy cited that majority of businesses have acquired loans to commercial and government banks prior the typhoon. These entrepreneurs, whose inventories and infrastructure have been devastated by the calamity, lamented on the difficulty to get back on their feet given the grave aftermath of the storm.

He said that they have been recently notified by their respective banks about the 90-day extension of loan payment. This means, he added, they should be able to pay by February of next year.

To ease the burden of entrepreneurs, they urged the government to help revive the private sector by leading the economic recovery of typhoon-hit areas and restore the business confidence of entrepreneurs.

“How are we going to pay the loan? If nag-resume man sa ilang businesses ang uban, wala pa sila naka-earn og profit. Other businesses have not operated yet until now. Some businessmen also do not have insurances. The 90-day extension is not enough. Asa man mi’g kwarta,” Calooy stated.

He then cited that they are proposing the government to bail out the bank loans of the businessmen who are also typhoon victims. He also said that banks could also reduce the interest rates of the loans.

He added that the Aquino administration, together with the Central Bank, could come up with assistance programs for the rehabilitation of the private sector.

“The government could shoulder the loan payment to the banks and businesses will pay to the government through soft loan once they gradually recover,” he said, adding that micro-financing and livelihood programs could also be created especially for micro, small and medium entrepreneurs (MSMEs).

Calooy said that once the business communities start to perk up, employers shall be capable of rehiring their workers and recreate jobs.

He said that typhoon victims should not depend on the distribution of relief goods alone but have to regain their normal lives through employment and livelihood.

“They are thinking that the business sector can stand up alone but the government actually has the capacity and power to help us,” he said.

According to the International Labor Organization (ILO) and United Nations (UN), around 13 million Filipinos in 36 provinces were affected by the super typhoon Yolanda, over 40 percent of which or 5 million people are workers. From this figure, 2.2 million were engaged in vulnerable forms of employment and in informal economy.

Calooy further noted that businessmen in Cebu and Leyte remain hopeful to recuperate from the calamity given the strong support from the government.

LBC has more than 20 members in Leyte. Some members of  FCBI in Northern Cebu are also affected while others also have branches or regional offices in Leyte.

FCBI initiated the repacking of construction materials and tool kits that were bought from the donations collected from the members.

These will be soon distributed to typhoon victims in Northern Cebu and Ormoc City to help them rebuild their ravaged houses. — (FREEMAN)