The House of Representatives accredited on third and closing studying a invoice increasing state-run banks’ authority to help pandemic-hit micro, small and medium enterprises (MSMEs), together with infusing a minimum of P107.5 billion extra capital to 2 state-run banks.
House Bill No. 1 or the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) invoice bought 282 affirmative votes on Thursday’s session.
The invoice mandates the Development Bank of the Philippines (DBP) and LandBank of the Philippines (LBP) to increase their mortgage help packages to MSMEs engaged in infrastructure, service business, and/or manufacturing business, in addition to grant loans to native authorities models.
One of the precedence legislations of the administration, the GUIDE invoice additionally offers a P100 billion capital inventory to DBP to be divided into one billion widespread shares with a price of P100 per share, which can be totally subscribed by the nationwide authorities.
Likewise, the invoice offers that an quantity of P10 billion from the National Treasury will fund the next:
- P2.5 billion as extra paid-up capital of the DBP, for the needs of lending underneath the mortgage help program to certified MSMEs, its rediscounting and different packages
- P7.5 billion as extra paid-up capital of LandBank, for the needs of lending underneath the mortgage help program to certified MSMEs, rediscounting and different packages of LandBank
The measure additionally requires DBP and LBP to rediscount loans and credit score lodging topic to relevant prudential requirements and rules of presidency businesses.
It authorizes the President “to approve the increase in capitalization of DBP upon the recommendation of the DBP Board and the concurrence of the Finance Secretary, up to such an amount as may be necessary to attain objectives of this charter.”
The request for help underneath the GUIDE invoice, on the minimal, ought to embody:
- schedule of the debtor’s money owed and liabilities;
- stock of the debtor’s property;
- pre-negotiated voluntary monetary rehabilitation plan, together with the names of a minimum of three certified nominees for rehabilitation receiver; and,
- abstract of disputed claims towards the debtor and a report on the provisioning of funds to account for applicable funds ought to any such claims be dominated legitimate or their quantities adjusted
Tingog party-list consultant Jude Acidre, one of many authors of the invoice, accepted all of the amendments put ahead by House Assistant Minority Leader Arlene Brosas of Gabriela party-list.
These embody the deletion of provisions on strategically necessary corporations and the complete chapter on Special Holding Company (SHC). The proposal permitting DBP and LandBank to put money into SHC was additionally eliminated, in addition to the one offering incentives, exemption and privileges for DBP, LandBank and SHC.—LDF, GMA Integrated News
