The Development Bank of the Philippines (DBP) disbursed over P11.98 billion in credit assistance for the tourism sector during the first half.
The state-owned bank said in a statement on Thursday that the borrowings helped around 178 tourism-related companies across the country.
DBP explained that the loan assistance is lodged under two programs, which include retail lending for micro and small enterprises and another one for medium enterprises and other businesses.
Extending financing was in line with DBP’s goal of helping the industry survive the impact of the pandemic.
The state-run bank said it is working with the Department of Tourism and tourism businesses to develop long-term solutions for the current economic slowdown.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said that the bank is “ready to provide needed resources to enable industry players to institute mechanisms that would rebuild trust in travel, seamlessly adapt to digital platforms and innovate traditional offerings to spur demand.”
Herbosa said that distressed companies may also access credit lines from the bank’s rehabilitation support program on severe events. It is open for rehabilitation efforts of both public and private institutions affected by calamities.
“Moving forward, we must ensure that resources for the industry are channeled not just for recovery and rebuilding but also for enhancing the readiness and resiliency to combat sudden and debilitating fluxes in the economy,” he said.
In the first half, the bank extended P19.16-billion credit support and payment deferment under its rehabilitation support program, benefitting 606 clients.
Earlier, DBP said that the transport sector could also avail loans through the program. Public utility vehicle operators were badly hit by the pandemic because of the temporary travel ban amid the lockdown.
“DBP is one with the DOTr [Department of Transportation] and LTFRB [Land Transportation Franchising and Regulatory Board] in finding suitable and sustainable solutions to assist the transport sector as it steadily begins to recover from the devastating losses spawned by this pandemic,” Herbosa said.
The DBP provides credit support to infrastructure and logistics; micro-, small- and medium-scale enterprises; social services and community development; and, the environment.