News

  • IGLF MSME Support Reaches P5.6B

    2017-01-12
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    The Industrial Guarantee and Loan Fund (IGLF) managed by the Development Bank of the Philippines (DBP) capped 2016 on a high note with P4.5 billion loans released to micro, small and medium enterprises (MSMEs), surpassing the P4.1 billion year-end target while loans approved reached P4.6 billion. Short-term loans to small borrowers account for 76% of total releases and approvals. As of end-December 2016, IGLF’s total loan portfolio reached P5.6 billion, up by P1.1 billion or 24% from previous year’s P4.5 billion. Wholesale lending to DBP-accredited participating financial institutions led the aggressive fund mobilization with conduits relending to MSMEs engaged in various economic activities such as hog farming, duck and poultry raising, retail sale of various items, and tricycles and other land transport operation. The other loan growth came from retail lending thru DBP’s Small and Medium Investment Loans for Entrepreneurs and different DBP branches in the countryside directly benefitting small businesses, involved in agribusiness, private education services, health care, tourism, food manufacturing and trading. IGLF, a fund owned by the Republic of the Philippines represented by the National Economic and Development Authority, is the longest running lending facility in the country that gives strong support to empower MSMEs by giving increased access to credit. It aims to boost the Duterte administration’s thrust of continued growth momentum of MSMEs in the regional and rural areas. IGLF has continuously been searching for ways to expand its credit service to small borrowers that have significant impact on employment, income generation, and value-adding to indigenous resources, and that contribute to community welfare and development. Meanwhile, in addition to its loan releases, IGLF has also been a main contributor to the Credit Surety Fund program approved by the Bangko Sentral ng Pilipinas. IGLF’s performance continues to indicate favourable management of resources. It has paid out almost all its foreign obligations to the World Bank, and with only the Asian Development Bank having a remaining balance of P305 million. IGLF ended 2016 with a P104 million projected net income. IGLF has grown the government’s initial investment of P803 million to P6.8 billion.

  • IGLF is Outstanding CSF Program Partner

    2016-09-05
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    BSP Monetary Board Member Valentin A. Araneta, IGLF Corporate Secretary & DBP SVP Lutgarda C. Baquiran-Peralta, IGLF Chief Executive Officer & DBP EVP Benel D. Lagua and BSP Governor Amando M. Tetangco, Jr. - Courtesy photo of BSP

    For two consecutive years, the Bangko Sentral ng Pilipinas cited the Industrial Guarantee and Loan Fund which is managed by the Development Bank of the Philippines as the Outstanding CSF Program Partner in the 2016 Annual Awards Ceremony and Appreciation Lunch for BSP Stakeholders held last July 13, 2016. The Outstanding CSF Program Partner Award recognizes partners that contribute to exemplary performance of the Credit Surety Fund and promote an environment conducive to the growth of sustainable development of MSMEs through greater access to bank credit. The CSF is a credit enhancement scheme conceptualized by the Bangko Sentral ng Pilipinas (BSP) and approved by the Monetary Board on 2 July 2008, which aims to improve the bankability and creditworthiness of capital-short micro, small and medium entrepreneurs’ (MSMEs), including cooperatives and non-government organizations (NGOs), with the end in view of addressing MSMEs’ difficulty in obtaining loans from banks due to lack of collateral, lack of credit knowledge and credit track record with banks. IGLF has always been supportive of the CSF Program. Of the aggregate approved amount of Php 99 million for CSF contribution, it has released Php 73.23 million to 33 CSFs as of June 30, 2016, with the following new entrants: Nueva Ecija, Santiago City, Malaybalay, Valencia City, Parañaque City and Cabanatuan City. Through the CSF Program, there is now nationwide, a total of Php 2.7 billion accumulated approved loans to 15,275 MSMEs. Of the total loans approved, Php 2.410 billion was released to 15,252 MSME beneficiaries and cooperatives engaged in various industries such as agricultural production, services, commercial, trading and others.

  • BSP cites DBP-run fund

    2016-08-09
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    - Courtesy photo of BSP

    The Bangko Sentral ng Pilipinas has cited the Industrial Guarantee and Loan Fund (IGLF) managed by the state-run Development Bank of the Philippines for two consecutive years as the Outstanding Credit Surety Fund Program Partner. The award recognizes partners that contribute exemplary performance of the CSF and promote an environment conducive to the growth of sustainable development of micro, small and medium enterprises through greater access to bank credit. Through the credit enhancement scheme, a total of P2.7 billion loans nationwide have been approved for 15,275 MSME’s of which P2.41billion has been released to 15,252 beneficiaries and cooperatives nationwide. IGLF has contributed P99 million to the CSF program of which P73.23 million has been disbursed to beneficiaries in Nueva Ecija, Santiago City, Malaybalay, Valencia City, Parañaque City and Cabanatuan City.

  • IGLF, Femi ink deal to support small enterprises

    2016-04-04
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    The Industrial Guarantee and Loan Fund (IGLF) and the Foundation for Enterprises Management Innovations Inc. (FEMI) signed an agreement to support micro-enterprises moving to become small and medium enterprises (SMEs). The Development Bank of the Philippines (DBP), which manages the IGLF, said the memorandum of agreement is for one-year capacity-building project designed to help expand micro-enterprises. DBP executive vice president and chief development officer Benel Lagua said the first phase of the project has a cost P962, 000 with the fund contributing P886, 000. “The plan is to evaluate outcome then decide on succeeding phases,” Lagua said. Under the terms of the agreement, the foundation will run several learning and development programs on business management such as finance, human resources, marketing and operations management in the field of micro, small and medium enterprises with focus on developing local entrepreneurs. Lagua said IGLF’s funding assistance to FEMI would help grow micro-enterprises raise income levels and living standards, giving these enterprises access to more and cheaper sources of funds from established financial institutions like the DBP via IGLF. “The growing enterprises to be assisted by FEMI through this grant, which is estimated at around 300, may be considered prospective borrowers of DBP,” he added. FEMI is registered under the Securities and Exchange Commission (SEC) as a social entrepreneur catering to micro-enterprises that are in growth stage.

  • IGLF, FEMI sign MOA to support the “Missing Middle”

    2016-03-01
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    The Industrial Guarantee and Loan Fund (IGLF) and the Foundation for Enterprise Management Innovations, Inc. (FEMI) signed last month a memorandum of agreement (MOA) for capacity-building project for the “missing middle” or graduating micro-enterprises moving to become small and medium enterprises. Under the terms of the MOA, FEMI will run several learning and development programs on business management such as finance, human resources, marketing and operations management in the field of micro, small and medium enterprises with a special focus on developing the local “missing middle” entrepreneurs in one year. IGLF’s funding assistance to FEMI will help growing micro-enterprise raise income levels and living standards, which will later give this enterprise access to more and cheaper sources of funds from established financial institutions like the Development Bank of the Philippines (DBP) via IGLF. The growing enterprises to be assisted by FEMI through this grant, which is estimated at around 300, may be considered prospective borrowers of DBP. A salient feature of this undertaking is the documentation of experiences of SMEs that will benefit form assistance. Both the involvement of the academe and the production of reference materials support replication efforts in the future. FEMI is a SEC-registered social entrepreneur catering to micro-enterprises that are in the growth stage.

  • IGLF loans up by 35%

    2016-02-03
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    The industrial Guarantee and Loan Fund (IGLF) approved small-business loans of P4.23 billion in 2015, exceeding the P4-billion target. Actual releases stood at P3.94 billion, absorbing 98.57 percent of the target. The loan growth was achieved sustainably, as net income posted P103 million. Both loan approvals and releases were driven by short-term loans, comprising 62 percent of the total releases and 58 percent of total approval. These are mostly small-business loans micro, small and medium enterprises (MSMEs) scattered all over the Philippines. As of December 31, 2015, IGLF’s total loan portfolio reached P4.49 billion up by P1.17 billion, or P35.6 percent, from previous years P3.31 billion. The number of MSMEs accounts under retail lending from DBP’s. Small and Medium Investment Loans for Entrepreneurs (SMILE), mainly increased by 165 percent. Other loan growth came from wholesale loans to partner financial institutions lending to countryside enterprises. IGLF has continuously been searching for ways to be more responsive to the financing needs of MSMEs, which has significant impact on employment, income generation and value- adding to indigenous resources and which contribute to community welfare and development. In addition to its loan releases, the IGLF has been a main contributor to the Credit Surety Fund (CSF) program approved by the Bangko Sentral ng Pilipinas (BSP). The IGLF was Outstanding Credit Program Partner of the CSF during the 2015 BSP Stakeholders Awards.

  • IGLF approved P4.23-B MSME loans in 2015

    2016-01-31
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    The Industrial Guarantee and Loan Fund (IGLF) approved small business loans P4.23 billion in 2015 exceeding the P4-billion year target. Actual releases stood at P3.94 billion, absorbing 98.57% of target, the Development Bank of the Philippines (DBP) said. The loan growth was achieved sustainability, as net income posted P103-million. Both loan approvals and releases were driven by short-term loans comprising 62% of total releases and 58% of total approvals. These are mostly small business loans of micro, small, and medium enterprises (MSME) scattered all over the Philippines. As of December 31, 2015, IGLF’s total loan portfolio reached P4.49 billion, up by P1.17 billion or 35.6% from previous year’s P3.31 billion. The number of MSME accounts under retail lending from DBP’s SMILE department, or Small and Medium Investment Loans for Entrepreneurs, mainly increased by 165%. Other loan growth came from wholesale loans to partner financial institutions lending to country side enterprises. IGLF has continuously been searching for ways to be more responsive to the financing needs of MSMEs that have significant impact on employment, income generation, and value- adding to indigenous resources and that contribute to community welfare and development. Private medical and other health services, private and education services, agribusiness, and tourism have been the industries identified as IGLF has been a main contributor to the Credit Surety Fund (CSF) program approved by the Bangko Sentral ng Pilipinas (BSP) The IGLF was Oustanding Credit Program Partner of the CSF during the 2015 BSP Stakeholders Awards. The government’s original investment in IGLF has grown from only P803 million to P6.75 billion today. Throughout its 63years of existence IGLF has been the longest running lending facility of government for MSMEs, with sustainability assured by the development bank of the Philippines (DBP), which has served as its Program Manager since 1990. Sunday, January 31,2016

  • DBP fund releases more loans to small businesses

    2016-01-29
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    The Industrial Guarantee and Loan Fund (IGLF) managed by the Development Bank of the Philippines (DBP) saw its loan releases to small and medium enterprises (SMEs) continue to increase last year from 2014 levels, topping lending expectations for 2015. In a statement on Thursday, the state lending facility said approved small business loans reached P4.23 billion last year, exceeding the P4-billion year target as actual releases stood at P3.94 billion. “Both loan approvals and releases were driven by short-term loans comprising 62% of total releases and 58% of total approvals,” the state-led bank said. IGLF provides loans to micro, small and medium enterprises (MSME), in particular those in the countryside, seeking to fund working capital and capital expenditure requirements. DBP said the fund had direct benefit on small businesses involved in private education services, health care, tourism, transport services, trading, agribusiness, food manufacturing and construction. DBP said as the end-December, IGLF’s total loan portfolio reached P4.49 billion, up by P1.17 billion or 35.6% from previous year’s P3.31 billion. The number of MSME accounts under retail lending from DBP’s Small and Medium Investment Loans for Entrepreneurs mainly increased by 165%. “Other loan growth came from wholesale loans to partner financial institutions lending to countryside enterprises,” it said. “IGLF has continuously been searching for ways to be more responsive to the financing needs of MSMEs that have significant impact on employment, income generation, and value- adding to indigenous resources, and that contribute to community welfare and development” it added. Meanwhile, in addition to its loan releases, IGLF has also been a main contributor to the credit surety fund program approved by the Bangko Sentral ng Pilipinas, DBP said. IGLF’s performance continues to indicate favorable management of resources. It has paid out almost all its foreign obligations to the World Bank, and with only the Asian Development Bank having a remaining balance of P349 million, the state lending facility said in the statement. It added the IGLF ended 2015 with a P103-million net income. The state lending facility said it has grown the government’s initial investment to P6.75 billion from P803 million. –Imee Charlee C. Delavin.

  • DBP-run IGLF releases P3.27-B loans in 2014

    2015-08-11
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    The Industrial Guarantee and Loan Fund (IGLF), which is managed by the Development Bank of the Philippines (DBP), has released loans amounting to P3.27 billion last year, 36% higher than 2013. Medium to long-term and short-term loans, at P2.58 billion, constituted 77 percent of net loans and interestingly, the largest growth rate of over 1,000 percent was manifested by medium to long-term loans. These loans were targeted at SMEs in the countryside seeking to fund working capital expenditure requirements. IGLF had direct benefit on SMEs involved in transport services, trading, agribusiness, health care, food manufacturing and construction. IGLF also took steps to further sharpen the focus of the program by increasing the asset size of enterprises eligible to P200 million to further increase market cover and to address financing needs of industries with high value linkages and those with high employment generation potential, consistent with the National Government’s mandate of inclusive growth. In a statement, DBP said the fund ramped up its support to the Credit Surety Fund (CSF) of the Bangko Sentral ng Pilipinas, assisting in 30 CSFs so the cooperative SME members can secure loans despite the inadequacy of their collateral position. DBP said the fund’s net income amounted to P104-million in 2014. It paid out almost all of its foreign obligations of the World Bank.

  • DBP bags CSF partner accolade

    2015-08-04
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    The Industrial Guarantee and Loan Fund (IGLF), WHICH IS MANAGED BY THE Development Bank of the Philippines (DBP), is this year’s recipient of the Outstanding Credit Surety Fund (CSF) Partner Award by the Bangko Sentral ng Pilipinas (BSP). The 2015 Annual Awards Ceremony and Appreciation Lunch for BSP stakeholders were held last month at the BSP Assembly Hall. The award recognizes stakeholders that BSP great support in its implementation of the credit surety fund, a fund pooled by cash contributions from participating cooperatives, local government units and other partner institutions. CSF is a credit enhancement facility developed by the BSP that aims to increase the creditworthiness of micro, small and medium enterprises, including cooperatives, which are constrained in securing loans from banks due to lack of collaterals. The winner of this award was selected based on the amount of contributions, payment of support to other CSF activities and payment of counterpart contributions. IGLF has always been supportive of the CSF program. Of the aggregate approved amount of P33 MILLION, IT RELEASED p73.23 million to 30 CSFs as of 30 June 2015, with the following new entrants: Bataan Credit Surety Fund, Quezon City Surety Fund, Markina Credit Surety Fund, Agusan del Norte Credit Surety Fund, Butuan Credit Surety Fund, San Jose City Credit Surety Fund, Science City Credit Surety Fund and Nueva Vizcaya Credit Surety Fund. Themed “12 Years and Beyond: Celebrating Strong Partnerships Successful Collaborations,” the awards ceremony is BSP’s annual tradition to show gratitude to people, companies and institutions that provided outstanding support to BSP in its information requirement and advocacy programs. The occasion also marked BSP’s 22 nd year of central banking as Bangko Sentral ng Pilipinas (BSP) and the 12 th year of the BSP Stakeholders Awards Ceremony and Apprteciation Lunch.

  • IGLF wins the Outstanding CSF Partner Awards

    2015-07-29
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    Photo shows DBP President & CEO Gil A. Buenaventura (second from left), EVP Benel D. Lagua (second from right) accepting the award on behalf of IGLF. Also in photo are Chairperson of the Monetary Board and Governor of the Bangko Sentral ng Pilipinas Amando M. Tetangco, Jr.(first from right) and Monetary Board Member and Chairperson, Board of Judges Juan D. De Zuñiga, Jr. The Industrial Guarantee and Loan Fund (IGLF) which is managed by the Development Bank of the Philippines is this year’s recipient of the Outstanding Credit Surety Fund (CSF) Partner Award by the Bangko Sentral ng Pilipinas.

    The 2015 Annual Awards Ceremony and Appreciation Lunch for BSP stakeholders were held last 14 July 2015 at the BSP Assembly Hall, Manila. The Outstanding CSF Partner Award recognizes stakeholders that provide BSP great support in its implementation of Credit Surety Fund, a fund pooled by cash contributions from participating cooperatives, local government units and other partner institutions. CSF is a credit enhancement facility developed by the BSP that aims to increase the creditworthiness of micro, small and medium enterprises, including cooperatives, which are constrained in securing loans from banks due to lack of collaterals. The winner of this award was selected based on the amount of contribution, payment of support to other CSF activities and payment of counterpart contributions. IGLF has always been supportive of the CSF program. Of the aggregate approved amount of P99 million, it has released P73.23 million to 30 CSFs as of June 30, 2015, with the following new entrants: Bataan Credit Surety Fund, Quezon City Credit Surety Fund, Marikina Credit Surety Fund, Agusan del Norte Credit Surety Fund, Butuan Credit Surety Fund, San Jose City Credit Surety Fund, Science City Credit Surety Fund, and Nueva Vizcaya Credit Surety Fund. Themed “12 Years and Beyond: Celebrating Strong Partnerships and Successful Collaborations”, the awards ceremony is BSP’s annual tradition to show gratitude to people, companies and institutions that provided outstanding support to the BSP in its information requirements and advocacy programs. The occasion also marked BSP’s 22nd year of Central Banking as Bangko Sentral ng Pilipinas and 12th year of BSP Stakeholders Awards Ceremony and Appreciation Lunch. For 2015, BSP’s token of appreciation is a metal figure of the Philippine eagle perched on a half circle over the three stars representing price stability, financial stability, efficient payment and settlement systems, in all the three islands of Luzon, Visayas and Mindanao designed by well known visual Filipino artist Ferdinand Cacnio.

  • IGLF- lends P3.3B to SMEs in 2014

    2015-07-29
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    The Industrial Guarantee and Loan Fund (IGLF) in 2014 released loans amounting to P3.27 billion, 36 percent higher than 2013. Medium to long-term and short-term loans, at P2.58billion, constituted 77 percent of net loans and interestingly, the largest growth rate of over 1,000 percent was manifested by medium to long-term loans. These loans were targeted at SMEs in the countryside seeking to fund working capital and capital expenditure requirements. IGLF had direct benefit on SMEs involved in transport services, trading, agribusiness, health care, food manufacturing and construction. IGLF also took steps to further sharpen the focus of the program by increasing the asset size of enterprise eligible to P200 million to further increase market cover and to address financing needs of industries with high value linkages and those with high employment generation potential, consistent with the national government’s mandate of inclusive growth. The IGLF likewise ramped up its support to the Credit Surety Fund (CSF) of the Bangko Sentral ng Pilipinas, assisting in 30 CSF’s so that the cooperative SME members can secure loans despite the inadequacy of their collateral position. By the end of 2014, IGLF had program contributions of P72.13 million to these CSFs, with the following new entrants: Bataan Credit Surety Fund, Quezon City Credit Surety Fund, Marikina Credit Surety Fund, Agusan del Norte Credit Surety Fund, Butuan Credit Surety Fund, San Jose City Credit Surety Fund, Science City Credit Surety Fund and Nueva Vizcaya Credit Surety Fund. IGLF ended 2014 with P104million in net income. It has also paid out almost all of its foreign obligations to the World Bank and with only ADB having remaining balance of P392.7 million. The initial government original investment in IGLF has grown from only P803 million to P6.3 billion today. Throughout its 62 years of existence, IGLF has been the longest running lending facilities of government, with sustainability assured by the Development Bank of the Philippines, which served as its Program Manager since 1990.

  • DBP subsidiary fails to achieve micro-lending goal in 2014

    2015-07-24
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    The Industrial Guarantee and Loan Fund (IGLF), a unit of the Development Bank of the Philippines (DBP), has failed to distribute the full amount of its target for microloans totaling P1.2billion. According to the Commission on Audit (COA), the IGLF intended to approve release more or less P1.2 billion of eligible micro, small and medium scale enterprises, but only 27.51 percent, or P330.142 million, was actually released during the period. The IGLF said it has adopted measures to effectively and efficiently achieve its loan target for micro and small-scale borrowers. IGLF released loan amounting to P3.341 billion out of P4 billion as of end-2014 Of the amount, P2.257 billion was released as short-term loans, surpassing its projected release of only P1.2 billion. It added that P431.759 million was allocated for microenterprises, P322.258 million were for medium to long term borrowers and only P330.142 million was allocated for microfinance loans. The IGLF said the primary reason for the plunge in IGLF microfinance approvals and releases was the continuous non-implementation of the approved omnibus credit line of the People’s Credit and Finance Corp. (PCFC). The PCFC traditionally contributed about 40 percent of wholesale banking, translating to IGLF utilization. “An equally significant reason for this deceleration is the decision of the IGLF to fully support the government’s inclusive growth agenda. The IGLF encourages all lending units of the DBP to give priority to industries or sectors that are powerful drivers of economic growth, employment generation, maximization of the total value chain such as, but not limited to manufacturing, tourism, and agribusinesses. Microfinance activities on the other hand, do not have value addition,” the COA said. The COA also said that, while loans and receivables recorded a net increase of P1.24 billion in 2014, the corresponding interest income registered a net decrease of P38.048 million. “This can be attributed to the lesser amount of releases to microfinance accounts with an interest rate of 4.75 percent, than that of the short-term accounts with lowest interest rate of 2.25 percent,” the COA said. “The management assured us that the IGLF will continue and push even harder to effectively and efficiently pursue and achieve it projected loan approvals and releases.” COA Director Emelita Quirante said. The IGLF has total resources of P6.736 billion in 2014, higher by 0.11 percent than the P2.729 billion registered in 2013. Net income declined by 25 percent to P104.035 million, lower than the P140.373 million recorded in 2013. -Genevi Factao