"WE have the money, what is the problem. Don't you want it?"
This might as well be the reaction of the government at the "shockingly low rate of applications" for friendly government credit by small- and medium-size industries (SME).
The Department of Finance said Tuesday there is special financing for SMEs totalling P500 million but not even P70 million have been availed of by the firms, which comprise about 90 percent of business nationally, since it was established nearly three years ago.
Of the P68.98 million in loans approved, an unreleased balance of P26.955 million remains to be drawn by seven state colleges and universities as well as local government units that dared tap the facility.
The DOF statement on the existing loan program came as Malacañang prepared to release within the week guidelines under a similar loan program under Executive Order 558, which had touched off a storm of controversy on fears of further inefficiencies in the government.
While loans under the controversial EO 558 were likely to be capped at only P100 million, Finance Secretary Margarito Teves said the existing loan program that achieves the same purpose as EO 558 has even bigger loan amounts available to borrowers but has rotted away in search of them.
EO 558 has struck well-founded fear among commercial microcredit outlets that believe nonfinancial government agencies will pursue the program as just one more doleout exercise ahead of next year's local elections.
Officials said the P500-million special facility first went on stream in April 2004 and was to have been pursued for just a year, but was extended to December 31 this year.
The government soon found out most borrowers take too long to conceptualize and conduct feasibility studies needed to have their programs supported by the loans, which are coursed through the Development Bank of the Philippines (DBP).
Officials said nine more projects with total financing requirement of P172.5 million are in the pipeline and deemed qualified to tap the program, but the DBP officials are not very hopeful of releasing that much money soon unless the borrowers can justify them with project feasibility studies that make sense.
Business Mirror
October 11, 2006
http://www.businessmirror.com.ph/sfp01.php
No comments:
Post a Comment