State-run Philippine Guarantee Corp. (Philguarantee) is further increasing loan guarantees extended to micro, small and medium enterprises (MSMEs) to P4.4 billion this year, benefiting an additional 8,800 enterprises.
Philguarantee president and CEO Alberto Pascual said the agency’s MSME Credit Guarantee Program (MCGP) registered a remarkable performance to reach P2.95 billion benefiting 20,310 entrepreneurs as of March 10 this year, about 14 times the initial portfolio of P207 million since the pilot implementation of the program in December 2020.
A total of P1.48 billion of the releases were supported by the Philguarantee’s credit guarantee facilities to such groups.
“The growth in the MSME credit guarantee portfolio, with the support of 18 banks in the country, represented more than 13 times or 1,325 per cent since December 2020, and this was impacted further by Philguarantee in the implementation of its key assistance role,” Pascual said.
Philguarantee also registered a 589 percent increase for MSME beneficiaries compared to the initial level of 2,948 in December 2020.
According to Finance Secretary Carlos Dominguez III, the sizable increase in financing assistance to MSMEs at the height of the COVID-19 outbreak underlines the government’s commitment to rescue small entrepreneurs hardest hit by the global downturn and ensure their swift and strong recovery from the prolonged pandemic.
“The quick recovery of MSMEs from the global health and economic crises is crucial to the country’s strong rebound at the soonest, considering that they make up 99 percent of all business enterprises and account for nearly 36 percent of the domestic economy,” Dominguez said.
Since the start of the MCGP at the height of the pandemic, the Philguarantee Governing Board has approved a total of P37.7 billion in credit guarantee facilities to 34 banks.
Presently, there are a total of 48 banks having approved facilities with Philguarantee where 18 are currently actively participating financial institutions, while 28 banks have completed guarantee agreement documentations.