DTI rolls out P3 in Eastern Visayas

TACLOBAN CITY, June 21 -- The Department of Trade and Industry (DTI) in this region has started the roll-out of the Pondo sa Pagbabago at Pag-asenso (P3), a program of the national government that will provide affordable micro-financing program for micro, small and medium enterprise (MSME).

DTI Regional Director Cynthia Nierras led the roll-out held recently at the Hotel Alejandro, Tacloban City. 

Eight micro-finance institutions (MFI) became partners of the DTI and Small Business Corporation in the implementation of P3 in Eastern Visayas.

These are Samahang Pangkabuhayan ng Riverside MPC operating in the province of Biliran; Omaganhan Farmers Agrarian Reform Cooperative operating in the northern part of Leyte province and in Biliran; Fatima MPC operating in the provinces of Leyte and Biliran; Libercon MPC operating in the towns of Hindang, Bato, Inopacan and Matalom in Leyte province; Lanang MPC operating in Llorente, Eastern Samar; Zaragosa Agrarian Reform Cooperative operating in the city of Baybay and the town of Matalom; and two MFI with regional operation: the Taytay sa Kauswagan, Inc. and Radiowealth Finance Company.

Nierras said that they were hoping that more local MFI would partner with the DTI in the implementation of P3 in Eastern Visayas to reach more MSMEs that needs assistance from the government.

Nierras said reports received from the SBC on the initial borrowers of P3 when it was launched in Tacloban last February 9, showed that the 26 microenterprises, mostly operating at the Tacloban City Public Market, has an average of 114-percent repayment rate.

  “The SBC said that most of the borrowers would pay in advance, instead of paying daily, they would pay for one week that’s why we have very high repayment. I hope that this will be the same as we implement the program region wide,” said Nierras.

Radiowealth Finance Company Manager Wally Miralles confirmed the high repayment rate of Tacloban microbusinesses that borrowed money in their company through P3.

“Small businesses are the best loan payers. The minimal amount that we lend was PHP5, 000 while the biggest was PHP100, 000. All borrowers have good repayment records,” said Miralles.

Now that the program is available to all MSMEs in the region, Miralles said that the MFI operators hoped that small business owners would avail of the program and stop patronizing the “5-6” operators.

“The government is now helping us to avoid loan sharks, we should take care of this by paying the amount that we loan,” Miralles said.

A total of PHP1 billion was allocated by the government for the implementation of P3 for 2017 with the SBC creating the guidelines on how MSMEs operators can avail the program.

Borrowers will have to pay a maximum interest rate of 2.5 percent per month, with no collateral requirement which is lower if to compare with the 10-2 percent per month charged “5-6” operators. (Roel T. Amazona/PNA)