The program dubbed "Puhunang Pangnegosyo para sa Kawani ng Gobyerno (Livelihood Fund for Government Workers)" will provide collateral-free livelihood loans to government employees, through employee cooperatives and employee associations.
It aims to make them, "active contributors in the collective effort to alleviate poverty and promote sustainable economic growth in the country," the Palace said.
The launching of the livelihood lending facility for government employees will be the highlight of the one-day event Go Negosyo, Go Gobyerno at the Philippine Trade Training Center on May 2.
The facility will be in the form of wholesale lending by government financing institutions, namely the People’s Credit and Finance Corp. (PCFC), Development Bank of the Philippines, Land Bank of the Philippines, Quedan Corp., National Livelihood Support Fund, and Small Business Guarantee Finance Corp., with government employee cooperatives or associations as their retail institutions.
The program offers livelihood loans starting at P5,000 given in cycles of three to six months, with a gradual increase in loan size based on repayment record, group or individual liability, and bi-monthly or monthly payments.
Presidential Management Staff chief Secretary Cerge Remonde, who is also Cabinet Oversight Official for MSME Development, said the entire MSME sector accounts for 99.6 percent of all business establishments in the country, providing 32 percent value-added to the economy, and employing 70 percent of the total employed workforce.
To boost economic growth in the country through micro, small and medium enterprises, Remonde said the government is earmarking another P34 billion for loans to the SMEs in the third quarter of the year.
About 2.44 million active MSME accounts or clients have availed themselves of P152 billion in credit assistance since 2004, he said. – Paolo Romero