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March 05, 2024

Investments rather than guarantees push state-owned financing firm higher in 2021

The performance of the non-guarantee portion of the Philippine Guarantee Corporation in 2021 helped push its net earnings higher by 182 percent that year.

It reported net income totaling P1.37 percent, almost double the previous year’s P487 million earnings, mostly from its investments and other income sources.

As state-owned finance guarantee actor, Philguarantee helps enterprises obtain significantly lower costs when obtaining loans from creditors on the basis of its commitment to back borrowers like the country’s micro, small and medium enterprises (MSMEs) in this case.

It similarly guarantees loans of qualified agricultural workers and of farmers and fishermen.

Philguarantee said its income from investments and from other sources rose 176 percent to P2.32 billion from only P839.6 billion a year earlier.

Income from its core mandate, on the other hand, proved lower by two percent to only P1.59 billion from P1.62 billion.

Nevertheless, the state-owned corporation served more borrowers this year as 6.5 percent more beneficiaries partook of its services.

Its guarantee services is recognized by 128 banks around the country.