SOURCE: Press and Public Affairs Bureau
THE House committee on banks and financial intermediaries on Tuesday
morning approved a consolidated measure, including Speaker Martin G.
Romualdez’s House Bill (HB) No. 1 which seeks to expand government’s
lending programs to help small businesses throughout the country
recover from the coronavirus disease-19 (COVID-19) pandemic.
Manila Rep. Irwin C. Tieng, panel chairman, led the approval of the
several measures to strengthen the capacity of the Land Bank of the
Philippines (LBP) and the Development Bank of the Philippines (DBP) in
providing the needed assistance to micro, small, and medium
enterprises (MSMEs), and other strategically important companies.
“There is a motion duly seconded, the bills on GUIDE by virtue of
Section 48 of the rules of the House of Representatives are hereby
approved. The secretariat is directed to prepare the committee
report,” Tieng said, adding that the consolidated measure will be
referred to House committees on appropriations and ways and means for
funding and tax provision requirements, respectively.
“As a matter of procedure, we have to submit our approved committee
report to the appropriations for funding and of course for ways and
means for tax provision,” Tieng said.
Romualdez, Representatives Yedda Marie K. Romualdez of party-list
group Tingog, presidential son Ferdinand Alexander Marcos of Ilocos
Norte and Jude Acidre, also of Tingog, are the principal authors of HB
Under Rule 10, Section 48, it authorizes the committees to dispose of
priority measures already filed and approved on third reading in the
immediately preceding Congress.
Rule 10 provides: “In case of bills or resolutions that are identified
as priority measures of the House, which were previously filed in the
immediately preceding Congress and have already been approved on third
reading, the same may be disposed of as matters already reported upon
the approval of the members of the committee present, there being a
Acidre sponsored the measure. “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 a more enabling environment for
financial access for our MSMEs,” Acidre said.
Some authors of the consolidated measure include Albay Rep. Joey Sarte
Salceda, Davao City Rep. Paolo Duterte, Benguet Rep. Eric Go Yap, and
Under HB No. 1, entitled, “An Act providing for government financial
institutions unified initiatives to distressed enterprises for
economic recovery (GUIDE),” it allocates P7.5 billion to Land Bank of
the Philippines (LBP) and P2.5 billion to Development Bank of the
Philippines (DBP) or a total of P10 billion to carry out their
“To this end, the government financial institutions are mandated to
expand their credit programs in order to assist MSMEs to meet their
liquidity needs. In particular, the LBP and DBP are mandated to expand
their credit and rediscounting facilities to affected MSMEs in the
agriculture, infrastructure, manufacturing, and service industries,”
the bill said.
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.(END)