The House of Representatives Committee on Banks and Financial Intermediaries has approved a consolidated House bill (HB) that seeks loans for companies deemed “strategically important” to the country’s economy.
This measure is known as the “An Act Providing For Government Financial Institutions Unified Initiatives To Distressed Enterprises For Economic Recovery,” otherwise known as the GUIDE Bill.
It was approved on Tuesday, Aug. 30, during the Banks and Financial Intermediaries Committee meeting. Manila 5th district Rep. Irwin Tieng, who chairs the panel, presided over the hearing.
Under the consolidated measure, P7.5 billion and P2.5 billion would be allocated to the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP), respectively.
This will allow the banks to offer financial aid to micro, small, and medium enterprises (MSMEs) of the agriculture, infrastructure, manufacturing, and service industries that were hard-hit by the pandemic.
The benefit also extends to business entities deemed “strategically important companies” for the Philippine economy.
One version of the GUIDE Bill–HB 1–was the very first piece of legislation filed in the 19th Congress. It was authored by Speaker of the House and Leyte 1st district Rep. Martin Romualdez, Ilocos Norte 1st district Rep. Sandro Marcos, and Tingog Party-list Representatives Yedda Romualdez and Jude Acidre.
HB 1 is a refiled version of the 18th Congress iteration of the GUIDE Bill, HB 7749. It was previously approved on third and final reading but fell flat in the Senate.
“The pandemic has placed a severe strain on our economy. The previous Congress successfully passed several versions of the Bayanihan to Heal as One Act to cushion the economic impact of the COVID-19. Nevertheless, our micro, small and medium enterprises remain struggling to survive the deleterious effects of the pandemic. In view of the foregoing, it is our humble but firm belief that we need to create more enabling environment for financial access for our MSMEs,” Acidre said in sponsoring the measure.
Read more about the Guide Bill here: https://mb.com.ph/2022/07/03/first-house-bill-filed-under-19th-congress-expands-loans-for-msmes/
The approved measure Tuesday was a consolidation of HB 1; HB 685 authored by House Ways and Means Chair Rep. Joey Salceda; and HB 3460 authored by Davao City 1st district Rep. Paolo Duterte, Benguet lone district Rep. Eric Go, and ACT-CIS Party-list Representatives Edvic Yap and Jeffrey Soriano.
Under the measure, the term MSME “refers to any business activity or enterprise engaged in industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, must have value falling under the following categories: micro, not more than P3 million; small, P3 million to P15 million; and medium, P15 million to P100 million".
The GUIDE bill also increases DBP’s capital stock from P35 billion to P100 billion divided into one billion shares of P100 each to be fully subscribed by the national government.
Meanwhile, lawmakers of the House Minority bloc described the bill as a “corporate bailout". It also happens to be one of President Ferdinand “Bongbong” Marcos Jr.’s priority measures.
READ:
https://mb.com.ph/2022/07/29/pbbms-priority-bills-are-pro-big-business-not-pro-masses-brosas/