State-owned Development Bank of the Philippines (DBP) and the Cooperative Development Authority (CDA) have signed a Memorandum of Agreement (MOA) to strengthen cooperative enterprises in the country through improved access to bank financing opportunities and capacity building initiatives.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bank’s partnership with CDA allows access to the bank’s credit programs, as well as to training programs on financial and operational management.
“DBP is pleased to partner with CDA in this initiative as we could efficiently further reach out to more cooperative enterprises in the country that need both financing opportunities and mentoring support,” Herbosa said.
DBP is the sixth-largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development.
CDA is the lead government agency responsible for promoting the sustained growth and full development of cooperatives around the country. Based on the latest government data, there are an estimated 18,065cooperatives registered with the CDA.
Herbosa said that under the agreement, DBP shall offer financing assistance to eligible cooperatives initially under three programs, namely, the Expanded Rice Credit Assistance Under Rice Competitiveness Enhancement Fund (ERCA-RCEF), the DBP RESPONSE to Accelerate MSME Recovery (DBP RESPONSE-MSME RECOVERY), and the DA-Agricultural Credit Policy Council-DBP BuyANIhan credit program.
He said CDA shall help DBP identify cooperatives that are ready to apply for the bank’s financing assistance to ensure project viability and sustainability.
“DBP recognizes our cooperative enterprises as drivers of countryside development. Thus, it is our aim to reach out to them, with the ultimate goal of improving the livelihood of our cooperative members as they strive to recover from the ill-effects of the pandemic,” Herbosa said.
The ERCA-RCEF is a credit facility to support rice farmers and their cooperatives, while the DBP RESPONSE-MSME RECOVERY seeks to accelerate the recovery of micro, small and medium enterprises amidst the economic slowdown caused largely by the ongoing pandemic.
On the other hand, the BuyANIhan credit program aims to elevate the direct engagement of rice cooperatives in the industry value chain by providing credit access to working capital requirements.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to [email protected].
Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA