“Give MSMEs interest-free loans without collateral”

MERCHANTS, who drive the economy, can further accelerate growth if they are provided with interest-free and unsecured loans, said a spokesman for the employers’ umbrella organization in the country.

Confederation of Employers of the Philippines (ECOP) President Sergio R. Ortiz-Luis Jr. told BusinessMirror that the old ways of lending were burdensome for micro, small and medium-sized enterprises (MSMEs).

Ortiz-Luis explained that the government needed to come up with “out of the box” solutions to bring merchants together and contribute to the economic recovery.

He pointed out that the government could maximize funds in its conditional cash transfer program and 4Ps. [Pantawid Pamilyang Pilipino Program] through lending to MSMEs.

“Instead of na ‘yung mga pera ipautang mo doon, ipautang mo sa MSME Nang Valang condition valang pledge, valang interest,” Ortiz-Luis told BusinessMirror last Monday. “Tapos eng treatment that is– evaluate long yun; just fine jung project, just give“.

The head of ECOP stressed that Manila has already passed two laws supposedly aimed at promoting the entrepreneurial spirit of Filipinos by creating a favorable business environment for MSMEs. However, Ortiz-Luis said they were not implemented properly.

Ortiz-Luis noted that for MSMEs to create jobs, they need to get rid of the traditional and cumbersome lending process that forces these merchants to go through a series of steps and fees.

kelangan talaga something new na kung ang gagawin lang kagaya ng dati na ‘yung uutang sa bangko, and dadaan din sa commercial Bank o dadaan din sa gobierno; feather parang lending Tuesday commercial [bank]: binababan lang kuno jung interest pen andun pa rin lahat ‘yung condition ng bangko; Val ring Magyar“.

Ortiz-Luis added that in the midst of travel restrictions due to the Covid pandemic, many micro-businesses have closed. He said that although the Department of Trade and Industry’s (DTI) finance arm, the Small Business Corporation, did not impose interest rates, SBCorp. service and documentation fees still required.

Wala ring of Nangyari. Ayaw na umutang ng iba dahil sikkem silang silang maipit na,” Ortiz-Luis told BusinessMirror.

But the head of EKOP stressed that since SBCorp. is under the supervision of the central bank, it must follow the rules of lending.

Instead of handing out funds in which the government “takes a risk,” funds should be invested in economic drivers, Ortiz-Luis said.

Kaisa ipamigai mo ‘yung pera, ilalaban mo“.

Ortiz-Luis told BusinessMirror that the government should view MSME lending as an investment, not an expense.