Small Business Corp. (SB Corp.), an agency of the Trade
Department, raised P1.18 billion through the issuance of MSME notes last
year, up 6 percent from P1.11 billion in 2011, the department said in a
statement Tuesday.
The MSME notes, which SB
Corp. use to fund and guarantee micro, small, and medium enterprises
(MSME), were largely bought by banks to meet the mandated allotment of
resources to MSME.
More banks subscribed to
the MSME notes last year—89 banks of which 53 are rural banks. Most of
the banks are existing investors in the SB Corp.-issued securities.
“The reason is that many banks comply with the legislated MSME lending
requirement by buying MSME notes issued by SB Corp., Finance
Undersecretary Gil S. Beltran noted in a text message to reporters on
Tuesday.
The law requires banks to allot at
least 8 percent of resources to micro and small businesses and 2 percent
to medium-sized enterprises.
“Banks have
adequate funds, but are unsuccessful in looking for MSME beneficiaries,”
said Beltran, who is concurrent director SB Corp.
MSME notes are part of interest yielding securities which banks may use
to meet the mandate allotment of resources under Republic Act 9501 or
the Amended Magna Carta for Micro, Small and Medium Businesses.
SB Corp. has also been able to wean banks in risk-based lending,
including Country Bank of Taguig, Bangko Alabang, Mt. Carmel Rural Bank
of Batangas, New Rural Bank of San Leonardo in Nueva Ecija, Rural bank
of San Jose in Camarines Sur, People’s Bank of Caraga in Agusan Del Sur,
and Rural Bank of Rizal in Zamboanga Del Norte.
“This risk-based lending will provide deserving SMEs access to
financing even without collateral, and in the long-run these banks will
be able to lend with more confidence and maintain a good quality
portfolio,” SB Corp. president and chief operating officer Benel P.
Lagua noted in the statement. — VS, GMA News
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