DTI’s P3 program to get additional P4B boost
President Rodrigo Duterte wants to quadruple the budget of Department of Trade and Industry’s (DTI) Pondo sa Pagbabago at Pag-asenso (P3) program to do away with informal lending, which the government identified as one of the causes of rising cost of food commodities.
To be specific, Duterte wants to increase the budget for P3 from P1 billion to P5 billion.
That’s according to Agriculture Emmanuel Piñol, who said Monday’s cabinet meeting was spent mostly to tackle the rising cost of food commodities.
“After deep analysis, it was found out that the cost of production for commodities barely gone up and that the main culprits are more on just speculations and the growing amount of loans done through five-six lending obtained by small and medium entrepreneurs (SMEs),” Piñol said in a report in Manila Bulletin.
“SMEs owners are forced to jack up their prices as they have to pay exorbitant nominal interest rate of 20 percent for the loans they have obtained in order to purchase the items they are selling,” the report added.
P3 program is a financing program intended to give SMEs better access to financing, reduce their cost of borrowing, and battle loan sharks “preying” on these small entrepreneurs.
The fund aims to prioritize the country’s 30 poorest provinces.