IFC to lend $ 300M yearly to RP firms
September 21, 2009 10:49 am
MANILA, Sept 21 -The International Finance Corp. (IFC), the private investment arm of World Bank, plans to lend nearly a billion dollar for over three years to Philippine business companies.
IFC resident representative Jesse Ang told reporters that for fiscal year 2010 to 2012, it will lend private companies $ 300 million a year. IFC's fiscal year starts June.
Ang said loans would mainly be given to the infrastructure, power, renewable energy, agribusiness and financial sectors.
IFC has invested $ 480 million in the Philippine power sector as of last year.
As of June 2008, the Philippines ranked second among IFC’s exposures in the East Asia and Pacific Region, with about $ 898 million in 32 projects.
Ang said IFC was also providing technical assistance to promote lending to micro, small and medium enterprises (SMEs).
"Eventually, what we would like to do is to help them [banks] lend money to SMEs or we can do re-sharing. We can take some risk exposure on the SME side," Ang said.
Earlier, IFC has partnered with East West Banking Corp. and CARD Bank to promote lending to SMEs.
Under the Magna Carta for SMEs, banks are required to set aside at least 8 percent of their loan portfolio to SMEs.
An Asian Development Bank study showed that access to credit remained the problem of the SME sector and despite the law, "funds did not actually go to SMEs but to larger enterprises that deliberately understate their assets to get classified as SMEs.”
Besides poor access to credit, other problems facing SMEs include marketing, information, technology and skills.
The ADB said assisting micro enterprises could be an important way to alleviate poverty, adding that some micro entrepreneurs have considerable potential to expand their businesses and should be helped in doing so. (PNA)
RMA/DGA/utb
Comments