The Industrial Guarantee and Loan Fund (IGLF) approved small business loans of P4.23-billion in 2015, exceeding the P4-billion year target. Actual releases stood at P3.94-billion, absorbing 98.57% of the target. The loan growth was achieved sustainably, as net income posted P103-million.
Both loan approvals and releases were driven by short-term loans comprising 62% of total releases and 58% of total approvals. These are mostly small business loans of micro, small and medium enterprises (MSME) scattered all over the Philippines.
As of December 31, 2015, IGLF’s total loan portfolio reached P4.49-billion, up by P1.17-billion or 35.6% from previous year’s P3.31-billion. The number of MSME accounts under retail lending from DBP’s SMILE department, or Small and Medium Investment Loans for Entrepreneurs, mainly increased by 165%. Other loan growth came from wholesale loans to partner financial institutions lending to countryside enterprises.
IGLF has continuously been searching for ways to be more responsive to the financing needs of MSMEs that have significant impact on employment, income generation, and value-adding to indigenous resources, and that contribute to community welfare and development. Private medical and other health services, private education services, agribusiness, and tourism have been the industries identified as IGLF beneficiaries.
In addition to its loan releases, IGLF has been a main contributor to the Credit Surety Fund (CSF) program approved by the Bangko Sentral ng Pilipinas (BSP). The IGLF was Outstanding Credit Program Partner of the CSF during the 2015 BSP Stakeholders awards.
IGLF’s performance continues to indicate favorable management of resources. It has paid out almost all its foreign obligations to the World Bank and with only Asian Development Bank having a remaining balance of P349-million. The government’s original investment in IGLF has grown from only P803-million to P6.75-billion today.
Throughout its 63 years of existence, IGLF has been the longest running lending facility of government for MSMEs, with sustainability assured by the Development Bank of the Philippines (DBP), which has served as its Program Manager since 1990.