Malacanang is planning to grant P1 million for each town in the Philippines as part of its P30 billion lending program to micro businesses and small- and medium-enterprises (SMEs).
This was revealed by Trade and Industry Secretary, Manuel A. Roxas II, to explain the P1 million cheques President Macapagal-Arroyo handed out to 48 mayors in Cebu.
Sen. John Osmena had questioned the distribution of the cheques. With a total of 1,496 towns in the country, Malacanang's local government unit lending program would require a total of P1.496 billion.
Roxas said the P1 million cheques were not dole-outs but loan allocations to town mayors to be used for re-lending to their constituents. "They can lend it out to their market vendors groups for their businesses. We think the mayors are good avenues for re-lending because they know their constituents more than the banks themselves,'' Roxas said.
