The Development Bank of the Philippines (DBP) is boosting its efforts in promoting financial inclusion by teaming up with several rural banks across the country.
The state-owned bank recently announced that it has inked a Memorandum of Understanding (MOU) with the Rural Bankers Association of the Philippines (RBAP) to develop and roll out strategic growth initiatives in the countryside.
This, as the partnership aims to extend banking services to the underserved communities.
“Through this partnership initiative, about 420 RBAP members shall be granted enhanced access to DBP’s digital banking services and credit programs as the bank implements its mission to reach more Filipinos in rural communities,” the DBP said in a statement.
Last week, DBP listed its P21-billion fixed rates series 2 bonds with the Philippine Dealing Exchange. The bonds due in 2022 carry an interest rate of 2.5 percent.
Proceeds are allocated for projects and investment aimed at generating employment and ensuring access to goods and services.
This offering came after DBP raised P18.125 billion from sustainability bond issuance in 2019. Proceeds were used to fund projects on economic inclusion; climate change mitigation and adaptation, natural resource conservation and pollution control and prevention and other social development initiatives.
DBP also recently announced it will be providing interest rate subsidy for loans extended to the local government units (LGUs) following the government’s mandate.
Earlier, it has been allotted P1 billion by the government for the interest subsidy program.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the funds coming from Bayanihan 2 would allow the bank to have longer repayment terms for LGUs of up to 15 years. The loans will be offered at a lower interest rate of 4 percent per annum, half of which will be subsidized.
The state-run bank is capping the interest rate subsidy at P10 million for provincial and city governments and P5 million for municipalities.
Aside from Herbosa, those present during the DBP-RBAP MOU-signing ceremony included DBP Executive Vice President Jose Gabino D. Dimayuga, RBAP President Elizabeth C. Timbol, RBAP Vice President for Luzon Gregory D. De Guzman and DBP Executive Vice President Susan Z. Prado.
Source : From the Web