US provides new $35-M credit facility for Phl

MANILA, Philippines - A new $35-million credit facility which is a key component of a broader US government effort to promote economic growth in the Philippines, will provide increased access to capital for the country’s small and medium enterprises (SMEs).

The credit facility is a key component under the US-Philippines Partnership for Growth.

Launched last November by US Secretary of State Hillary Clinton and Foreign Affairs Secretary Albert del Rosario, the Partnership for Growth will help the country move to a higher, sustained and more inclusive growth trajectory in line with other high-performing economies.

US Ambassador Harry Thomas Jr. and US Agency for International Development (USAID/Philippines) mission director Gloria Steele launched the eight-year, $35-million credit facility together with Bank of the Philippine Islands (BPI) president and chief executive officer Aurelio Montinola III and BPI Family Savings Bank (BFSB) president Jose Teodoro Limcaoco.

“This credit facility will help expand access to capital to allow Filipino entrepreneurs improve and develop their businesses. More importantly, increased access to credit will encourage the creation of more businesses, resulting in more employment opportunities and increased income for Filipinos,” Thomas said.

The facility will encourage lending to SMEs in three cities outside Metro Manila – Batangas, Iloilo and Cagayan de Oro – that are the focus of USAID’s Cities Development Initiative (CDI).

An integral part of the Partnership for Growth, the CDI aims to promote growth in cities identified for their growth potential, and to unlock and maximize the country’s potential.

“USAID’s partnership with BPI and BPI Family Savings Bank aims to stimulate targeted domestic commercial investment and increase the number of start-up businesses in the CDI cities and surrounding areas. With an eight-year coverage and five-year enrollment period, the credit facility will help reduce SME collateral requirements and allow entrepreneurs to explore new markets,” Steele said.

Montinola said BPI and BPI Family Savings Bank have long been engaged in endeavors that would help SMEs bring progress to the whole economy.