MSMES GET P84 BILLION LOAN

Some of the country's MSMEs or micro, small and medium enterprises have been granted a total of P84 billion loans following a gentle push from the government to revive the economy.

Data from the Bangko Sentral ng Pilipinas (BSP) show that loans to MSMEs, considered the lifeblood of the country's economy rose eight- fold from P10 billion MSME loans as of April.

The increase in loans to the MSMEs is considered significant and it means that more workers are to go back to the labor force following the hard lockdown that started last March 17 that affected many MSMEs from mall renters to manufacturing plants.

MSMEs account for seven in ten employed in the country and by giving them loans to restart their businesses they can hire back their employees who had to be furloughed with the pandemic' s virulence.

The BSP had mandated MSME loans by banks as alternative compliance to the reserve rate which sets forth the deposit of P12 for every P100 deposit that banks raise.

Also, the Department of Trade and Industry and the Land Bank of the Philippines engaged the banks to lend to MSMEs by guaranteeing up to 50 percent of the loans.

The private sector has also come to the rescue of MSME, numbering almost a million with employees of at least five, by coming up with social enterprise projects to aid them by buying their products and selling them even beyond Philippine shores.

Obra Ilongga, headed by Ms. Frannie Golez, is trying to revive MSMEs in Panay and Guimaras islands, by buying their handcrafted items and in many instances tweaking the design of the products to ensure their marketability within the country and all over the world.

Another entrepreneur, marketing whiz Ardee Urbina is coming up with a program to assure jobs for those who lost their jobs with a combo of social media and online training seminars.

Trade Secretary Ramon Lopez has been seeking private sector help in a bid to employ those who have been affected due to the pandemic.

'With every job created, we are saving one person from poverty" he said.