NEDA seeks passage of GUIDE bill before June

The National Economic Development Authority (NEDA) on Thursday called for the passage of the measure seeking to provide financial aid to distressed enterprises affected by the COVID-19 pandemic before June this year.

NEDA Assistant Secretary Carlo Abad Santos made the appeal as the Senate banks committee tackled the proposed Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) bill.

According to Abad Santos, the GUIDE bill is among the 12 priority measures of the Legislative-Executive Development Advisory Council for approval by the end of this year.

"We hope for its swift passage before June this year. Along with other members of the economic team, we are here to express our full support for GUIDE and to request the Senate to facilitate its speedy approval," he added.

Under the proposed measure, the financial assistance will be given through programs and initiatives that will be enforced by the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) to address liquidity or solvency problems of micro, small and medium enterprises (MSMEs) and strategically important industries, encourage their continued operations, and maintain employment levels.

One key provision of the measure is the expansion of loan assistance programs, rediscounting and other credit accommodation facilities of LBP, DBP, small business corporation and Agriculture Credit Policy Council.

The targeted sectors of LBP include players engaged in activities in the agribusiness value chain and for DBP, it will give assistance to eligible MSMEs engaged in infrastructure, services, service industry, and/or manufacturing business.

BSP support

Bangko Sentral ng Pilipinas Governor Benjamin Diokno likewise expressed full support to the passage of the GUIDE bill.

"When enacted, the GUIDE bill will boost the capacity of LBP and DBP to support our MSMEs through expanded lending activities, thereby ensuring the availability of credit to this sector," he said.

"This bill will supplement the financial assistance to MSMEs that this Congress provided through the Bayanihan laws," he added.

National Treasurer Rosalia de Leon likewise backed the approval of the measure, noting the importance of MSMEs and strategically important companies in the country's economy.

"We think that GUIDE is an efficient and effective method to support the economic recovery. The initial funding required will go a long way in helping people tide this pandemic," she said.

The House of Representatives has already approved its version of the measure last month. — RSJ, GMA News