The House of Representatives on Wednesday permitted on second studying a invoice increasing state-run banks’ authority to help pandemic-hit micro, small and medium enterprises (MSME).
House Bill No. 1 or the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) 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 items topic to current guidelines and rules.
One of the precedence legislations of the administration, the invoice offers a P100 billion capital inventory to DBP to be divided into one billion widespread shares with a worth of P100 per share, which can be absolutely subscribed by the nationwide authorities.
The quantity is a rise from an current P35 billion capital inventory of the DBP.
The measure additionally requires DBP and LBP to rediscount loans and credit score lodging topic to relevant prudential requirements and rules of presidency businesses.
Likewise, the GUIDE invoice 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.”
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 your complete chapter on Special Holding Company (SHC). The proposal permitting DBP and LandBank to spend money on SHC was additionally eliminated, in addition to the one offering incentives, exemption and privileges for DBP, LandBank and SHC.—LDF, GMA Integrated News
