|
By Maricel E. Burgonio, Reporter
MICRO and small enterprises will be exempted
from submitting income tax returns and annual financial statements
when taking out a loan for another three years, after the Bangko
Sentral ng Pilipinas (BSP) extended this privilege.
The extension is a year more than what the
Chamber of Thrift Banks had requested. Before the extension, micro
and small enterprises could enjoy this privilege only until November
2 this year.
“It’s extended for three years and to end in
December 2011. Basically, this will give the micro and small
[business] enough time to organize their accounting, etcetera, so
that they’ll be able to comply. We recognize that the two-year
transition period is too short,” BSP Deputy Governor Nestor
Espenilla Jr. told reporters.
Espenilla said the BSP also exempted non-stock
savings and loan associations (SLAs) from the documentary
requirements as it also serves a narrow market.
Non-stock SLAs are allowed to accept deposits
from and grant loans to their member depositors only.
Under the circular, banks however may obtain
information on the credit standing and financial capacity of
borrowers.
In a position paper, the thrift bank chamber
earlier said requiring micro and small businesses to submit the said
documents is not feasible since it will be difficult for banks to
compel its borrowers to comply with the annual submission,
especially if a borrower has been granted a term loan.
The chamber said thrift banks may lose the
borrowers to the informal sector if they would be compelled to sign
the waiver before loans are granted.
The group supports the view of the International
Finance Corp., a World Bank unit, that it is improper for banks to
police their customers’ fiscal disclosures considering it
disparages open and honest relationships between the two parties.
BSP Governor Amando Tetangco Jr. earlier said
that large demand for credit by small and medium enterprises (SMEs)
remains underserved.
Tetangco said banks need to strengthen their
capacity to better serve the SME market.
The BSP reported that the banking system had
granted about P344 billion in loans to the sector, or equivalent to
24.8 percent of lenders’ combined net loan portfolio.
|
