DTI CL allots P167.5 for P3 Program

DTI CL allots P167.5 for P3 Program

DTI CL allots P167.5 for P3 Program

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BALANGA CITY, Bataan – The Department of Trade and Industry (DTI) in Central Luzon has alloted about P167.5 million opened as credit line for the government’s Pondo sa Pagbabago at Pagasenso (P3) program, a scheme that Trade officials believe would eventually “kill” loan sharks, popularly known as 5/6.
In a regional report, DTI is inviting microfinance institutions (MFI) including cooperatives as partner conduits for this program.
Target of the program is to help the small traders, mostly street and ambulant vendors and sari-sari stores, through a maximum interest of 2.5 percent per month.
For Central Luzon, a total of P120.2 million has been released to different MFIs with 3,218 borrowers as of June 30, 2018, Small Business Corporation (SBC) records showed. SBC is the business-arm of DTI.
Bataan has four MFIs with P28 million available funds and only P18 million has been released to 287 borrowers.
P3 project was piloted in Aurora province, with a P18.5-million credit line to six MFIs. So far only P20.3 million had been released to 611 borrowers.
In Bulacan, a P45-million credit line opened for 1,282 borrowers but only P35 million so far had been released to three MFIs.
Meanwhile, Nueva Ecija has an P8-million credit line but P8.9 million was released to three MFIs intended for 352 beneficiaries. Tarlac has P30 million credit line and P15 million disbursed by a micro-finance institution for 346 borrowers; Zambales, P6 million for 398 individuals who availed of cash loans.
President Rodrigo Duterte announced during his recent State of the Nation Address (SONA) that he had released P6 billion to help small businesses and to defeat the proliferation of 5/6.
The 2017 General Appropriations Act has included an initial funding of P1 billion for financial assistance, a part of the planned P19 billion financing initiative for micro and small businesses in the next five years.
The program’s fund was lent out in the business centers of the poorest provinces (based on poverty incidence), where the participating microfinance institutions (MFIs) and the Small Business Corporation (SB Corp.) can operate.
An attached agency of DTI, the SBC administers the P3 Program, including the creation of a Program Management Office (PMO), which will open a separate back account for the P3 Program, to oversee the management and monitoring of fund.

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