Philguarantee expands portfolio by 28.82%
PHILIPPINE GUARANTEE Corp. (Philguarantee) grew its portfolio by 28.82% in 2023 to P236.98 billion, with its activities remaining focused on facilitating credit to socialized or low-cost housing projects, small businesses, and small-scale farmers and fisherfolk, the Department of Finance (DoF) said.
In a statement, the DoF said Philguarantee, a government-owned and -controlled corporation (GOCC), estimates that its credit facilitation activities reached 426,378 beneficiaries.
Philguarantee revenue rose 103% to P5.32 billion in 2023, generated primarily from guarantee fees and premiums, commitment fees, and the sale or rental of real estate.
Dividends remitted to the National Government rose 224.4% to P2.42 billion.
The GOCC also expanded its network of partner lending institutions to 152 in 2023 from 131 a year earlier, the DoF said.
“This robust performance is a testament to our country’s strong credit guarantee system,” Finance Secretary Ralph G. Recto was quoted as saying in the statement.
Philguarantee was created after five Philippine Guarantee Programs and Agencies (PGPAs) were consolidated in 2019 under Executive Order No. 58.
The GOCC provides credit guarantees to improve loan access of micro-, small- and medium-sized enterprises, exporters, infrastructure and energy projects, agricultural businesses or farm modernization projects, housing, tourism, and other parts of the economy.
Philguarantee is modifying its charter to continue integrating the merged PGPAs.
These include the Home Guaranty Corp., Agricultural Guarantee Fund Pool, Industrial Guarantee Loan Fund, the guarantee operations of the Small Business Corp., and the Philippine Export-Import Credit Agency.
“The changes will enable the Philguarantee to be more responsive to its mission of providing credit supplementation and its development financing objectives, particularly in key economic areas, where jobs and livelihood creation will be most felt,” the DoF said.
It also seeks to enhance its portfolio management, digitalization efforts, and personnel development as outlined in its Strategic Pillars and Sustainable Institutional Goals for 2023 to 2025, the DoF added. — Beatriz Marie D. Cruz