More than P655 billion in credit guarantee lines were opened last year by the Philippine Guarantee Corp. (PhilGuarantee) to assist micro, small and medium enterprises and other businesses in the manufacturing, housing, agriculture and other key sectors that were affected by the Covid 19 pandemic.
PhilGuarantee president-chief executive officer Alberto Pascual said out of these credit guarantee lines, a total of P180.67 billion in loans were guaranteed by the state agency, or 8 percent above its target of P167.21 billion for last year.
He said the state firm’s MSME Credit Guarantee Program (MCGP) accounted for P37.73 billion of the approved credit guarantee lines.
“This was extended to 34 banks across the country to encourage them to continue lending to small businesses affected by the Covid-induced crisis,” he added.
Pascual said the program will be extended until September this year to provide continuing support to affected MSMEs via available access to working capital loans under credit-risk sharing arrangements with accredited banks.
A total of 2,943 new MSME beneficiaries were served under this program, which as of December 2020, provided guarantees to loans totaling P175.1 million. The number of MSME-beneficiaries was expected to have increased in January 2021.