IN the Philippines we know that there is quite a number of people who take loans from loan sharks and illegal loan operators. They charge such oppressive interests that the small people, who are usually their patrons, end up buried in so much debt. The most common is the 5-6 loan at 20-percent interest. The government has now expressed concern about this and has started to address the issue. Illegal loan operators can be arrested, according to authorities, without the need for a warrant of arrest
Just to put some things into context: Those who borrow from these sources use the money for their small business or livelihood, or for personal expenses, like food allowance, tuition fees, or utilities. Usually, these people don’t have access to other forms of credit, like bank loans and credit cards. In other words, they accept the high interest rates because there is no other choice.
The Department of Trade and Industry (DTI) saw the financial needs of the small entrepreneurs: the sari-sari store, the carinderia and the computer-shop owners, for example. Owners of micro, small and medium enterprises (MSMEs), who may or may not have access to adequate credit from banks, can now avail themselves of the government program called P3, or Pondo sa Pagbabago at Pag-asenso Program. Aside from helping entrepreneurs, it also aims to discourage more people from going to the loan sharks or 5-6 lending operators.
The program has P1-billion budget that will be lent out to borrowers at only 20-percent interest per year. According the DTI, it will be piloted in Mindoro, Sarangani and Leyte—places that are among the 30 poorest provinces in the country. The project was started in March this year.
MSMEs make up about 90 percent of the businesses operating in the country today. These entrepreneurs need all the financial help they can get to grow their businesses. With the government’s P3 Program, I am hoping that there will be less people who will desperately take loans from the 5-6 lenders, which will just push them deeper in debt and put them in a more difficult place, economically speaking.
The P3 Program is just one of the many sources of funds for MSMEs. Micro-financing is also available from banks, cooperatives and non-government organizations. The Bangko Sentral ng Pilipinas (BSP) supports programs for the small entrepreneurs by regulating these activities through circulars that would allow MSMEs to gain easier access to funds.
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ON February 5 the first Chinese- Filipino Friendship Race or the Philippine Charity Sweepstakes Office (PCSO)-sponsored Manila Chamber of Trade and Commerce Race was held at the Manila Jockey Club Inc. in Carmona, Cavite. Finishing first was Marinx (jockey-JG Serrano), followed by King Bull (jockey-JB Hernandez). Third placer was Lollipop (jockey-JB Cordova), and Hook Shot (jockey-RO Niu, Jr.) ended up in fourth place.
Some weeks later, on March 18, the PCSO Special Maiden Race was held in San Lazaro Leisure and Business Park, also in Carmona, Cavite. Finishing strong in first place was Manda (jockey-JB Hernandez), followed by Great Wall (jockey-OP Cortez), and finally, Absolute Winner (jockey-Val R Dilema) and Janders (jockey-MA Alvarez) both finished at the same time and landed in third place. Congratulations to all the winners of these races!
1 comment
Gov’t should put those funds into rural banks so poor farmers can have adequate farm capital to rebound from crop failures. Instead of abandoning the fields to come to the cities and squat in search of any menial source of livelihood.