Martin Romualdez wants higher LandBank, DBP funding for MSMEs

Leyte Representative and presumptive House Speaker Ferdinand Martin Romualdez filed the first bill of the 19th Congress — a measure which seeks P10 billion in financing for state-run lenders.

Under House Bill 1, Romualdez, also the cousin of President Ferdinand “Bongbong” Marcos Jr., is looking to allocate P7.5 billion to the Land Bank of the Philippines (LandBank) and another P2.5 billion to the Development Bank of the Philippines (DBP).

The measure seeks to boost financing for the lenders for them to assist micro, small, and medium enterprises (MSMEs), and create a special holding firm that will focus on catering to such businesses.

Dubbed the GUIDE Bill, the measure was co-authored by presidential son and Ilocos Norte Representative Ferdinand Alexander “Sandro” Marcos, and Representatives Jude Acidre and Yedda Marie Romualdez of the Tingog Party-list.

“The proposed legislative measure seeks to strengthen the capacity of the Land Bank of the Philippines and the Development Bank of the Philippines to provide the needed assistance to MSMEs, and other strategically important companies,” the explanatory note read.

“To this end, the government financial institutions are mandated to expand their credit programs in order to assist MSMEs to meet their liquidity needs,” it continued.

Micro enterprises are defined as those with total assets worth less than P50,000; cottage enterprises with assets worth P50,001 to P500,000; small with P500,001 to P5 million; and medium from over P5 million to P20 million.

The LandBank in May launched a P50-billion loan program for businesses hit by natural and man-made calamities such as the ongoing conflict between Russia and Ukraine.

The Landbank is mandated to promote countryside development while remaining financially viable. It implements the comprehensive agrarian reform program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds.

Meanwhile, the DBP is mandated to provide banking services principally to cater to the medium and long-term needs of agricultural and industrial enterprises, focusing on small and medium-scale industries.

“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 GUIDE Bill read.

GUIDE also seeks to establish a special holding company that would be a major player in financial and capital markets through the provision of aid to firms with solvency or liquidity issues due to the COVID-19 pandemic.

It also calls for the increase in the capital stock of DBP to P100 billion divided into one billion shares priced at P100 a piece, up from P35 billion.

A similar measure was introduced by Quirino Representative Junie Cua in the 18th Congress but failed to pass through the Senate.

Former Finance Secretary Carlos Dominguez III in February called for the amendment of what he called the “stupid” charter of the Landbank and hinted at its possible listing on the Philippine Stock Exchange under the next administration. — DVM, GMA News