State-owned Development Bank of the Philippines (DBP) has granted a P2-billion credit line to one of the largest cooperatives in the country for relending to its members composed mainly of members of the military, a top official said.
DBP president and chief executive officer Cecilia C. Borromeo said the bank’s loan assistance to the Philippine Army Finance Center Producers Integrated Cooperative (PAFCPIC) is aimed at broadening support to small borrowers like soldiers and micro-entrepreneurs who wish to set-up their own business or expand their operations.
“Through this P2-billion revolving credit line, PAFCPIC will be able to augment its working capital and enable it to grant more loans to its eligible borrowers,” Borromeo said.
PAFCPIC is the second largest cooperative in Metro Manila and was founded in 1981 by employees of the Philippine Army Finance Center, an institution that handles the payroll and other financial matters of the Philippine Army.
The cooperative was initially created to support the agriculture activities of its members but has diversified into other types of lending such as salary, multi-purpose, and business loans to its more than 120,000 members.
Borromeo said DBP is prepared to provide similar assistance to other cooperatives, pursuant to the bank’s mandate to assist budding entrepreneurs.