STATE-OWNED Development Bank of the Philippines (DBP) said its loan approvals to priority sectors such as local governments, water districts and electric cooperatives reached P53.2-billion as of end-June 2016.
The figure is in line with its three-year target of hitting P60 billion in loan approvals to priority sectors by the end of this year, the bank said on Thursday.
“As the country’s premier development financial institution, the Development Bank of the Philippines is strongly committed to its development mandate focused on its mandate sectors,” DBP said in a statement.
The bank said that through the years, it has been a key player in nation-building by assisting critical industries and sectors, promoting entrepreneurship particularly in the countryside, helping build more productive communities, advancing environmental protection, and contributing to the improvement of the lives of Filipinos across the nation.
In line with this, the DBP said it is the first government financial institution to be initiated under the Performance Governance System (PGS) by the Institute for Solidarity in Asia, achieving Proficiency Status and winning two Silver Trailblazer Awards.
DBP’s PGS target breakthrough result is to “expand access to loans by local government units (LGUs), water districts and electric cooperatives.”
“This target is considered breakthrough because it aims to increase DBP’s loan approvals in these priority areas 10-fold, from P6.9-billion in 2013 to P60 billion in the three year-period starting from 2014 thru 2016,” it said.
DBP said it is focused on these sectors in support of the national government’s development plan.
“Furthermore, projects in these sectors might not be attractive for other private commercial banks due to different return hurdle rates or longer time horizons, and DBP has already developed the understanding and specialization in these sectors,” it said.
Most importantly, the state-owned lender said these sectors have the immediate and biggest impact to the well-being of Filipinos: the social infrastructure put up by local governments such as public markets, transport terminals, hospitals, schools, roads and sports and leisure facilities; and the most basic need for water and electricity distributed by water districts and electric cooperatives.