Philippines infuses P11.05-B into BSP, 3 GOCCs

MANILA, Philippines–The national government has infused P11.05 billion into the Bangko Sentral ng Pilipinas (BSP), Trade and Investment Development Corp. (TIDCORP), Home Guaranty Corp (HGC) and Credit Information Corporation (CIC) to strengthen their capability to perform their roles in the financial market.

Budget and Management Secretary Florencio B. Abad said that P10 billion of this amount will be provided to the BSP to help it carry-out its price stability functions and expand its rediscounting facility for priority projects that would stimulate economic activity.

“We have to support BSP in strengthening its capacity to pursue swiftly and decisively the necessary policy actions without being limited by concerns over balance sheet weaknesses,” he said, noting that the amount partially covers the P40 billion in unpaid equity infusion to the central bank.

BSP has a total authorized capitalization of P50 billion. However, it has been almost 15 years since the government infused an initial P10 billion in equity in 1996.

Likewise, P570 million is allocated for TIDCORP as unpaid capitalization by the national government. Abad stressed that TIDCORP, formerly known as the Philippine Export-Import Credit Agency, needs to strengthen its capital base to be able to perform its mandate of providing financial assistance to enterprises engaged in international trade.

“This additional capitalization to TIDCORP will certainly benefit our exporters and importers by having better financing to access international trade opportunities,” he said.

Also, P400 million is allotted for the Home Guaranty Corporation (HGC) for its credit insurance and mortgage guarantee operations. This amount, Abad said, will improve HGC’s capital base to rebuild its credibility as a guarantee institution in the housing sector.

“A stronger HGC will definitely bolster our government’s bid to provide affordable housing for Filipinos, particularly the poor and vulnerable,” he said.

Lastly, P75 million is allotted for the newly-established Credit Information Corporation (CIC). Of this amount, P53.94 million is infused as equity, while the balance of P21.06 million will cover the operational requirements and capital expenditures of CIC to establish a comprehensive and centralized credit information system, including the establishment of a data center.

“A centralized credit information system will boost the credibility and viability of our financial market. It will make the processing of loans and claims faster, eventually leading to more economic activity,” he said.

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