The Arroyo administration wants to triple government and private sector lending to small- and medium-sized enterprises (SMEs) in order to boost the business environment and encourage job generation.
Presidential deputy spokesman Ricardo L. Saludo said President Gloria Macapagal Arroyo issued the order during a Cabinet meeting yesterday. Mr. Saludo said the president's vow to triple lending to the estimated 808,000 SMEs nationwide was one of her campaign pledges during the elections.
Based on the figures from the Small Business Corp., government financial institutions lent a total of P26.7 billion (US$4.75bn) last year while private banks extended SMEs loans totaling P214.8 billion (US$38.2bn), he said.
With the president's order, Mr. Saludo said the administration wants government-owned banks to lend P80.1 billion to SMEs and would encourage private banks to expand lending to meet a P644.4-billion target.
