State-owned Development Bank of the Philippines is making available a program that will promote entrepreneurship and savings and investment activities among overseas Filipino workers and their families.
DBP president and chief executive officer Reynaldo G. David said the DBP Livelihood Loan and Savings program for OFWs will support migrant workers and their families in putting up livelihood projects or expanding their existing businesses.
“This program will encourage the entrepreneurial spirit among overseas Filipino workers and their families while teaching them the values of engaging in savings activities and maximizing investment opportunities,” David said.
He added that the program was developed in line with DBP’s commitment to further intensify assistance to the ever-growing OFW sector to uplift the socio-economic conditions of migrant workers and their families.
The facility shall be initially available to OFWs working under controlled environments such as seafarers, as well as those working in hospitals, remittance companies, and similar businesses. Applicants should have co-borrowers/specified beneficiaries who will manage the business.
Qualified beneficiaries are the spouse, children or parents of a married OFW, and the parents, siblings, nephews or nieces of a single OFW.
The program can provide loans for working capital, acquisition of machineries and equipment, franchise fees, and other project-related expenditures. The regular livelihood loan amount ranges from P10,000 up to P100,000, while the franchising loan amount is up to a maximum of P500,000.
Total loan amount to be granted shall be based on 90 percent of total project cost.
Eligible projects for the program include manufacturing, export and support industries; transportation, communication, information technology; franchising, distribution, dealership and trading; education linked to manufacturing; tourism related businesses; and agri-business.
Interested OFWs and their beneficiaries may inquire at any DBP branch or at DBP’s Remittance Center located at the DBP Head Office in Makati City.
Showing posts with label Philippine banks. Show all posts
Showing posts with label Philippine banks. Show all posts
Thursday, October 02, 2008
Wednesday, October 01, 2008
Banks’ Past Abuses Still Haunt Migrant Savings Pool – ILO Study
By Isagani De La Paz
MANILA–MIGRANT workers have yet to be convinced errant banking processes are things of the past before they see the veracity of pooled savings for investment in development projects, a recent study by the International Labor Organization revealed.
The study titled “The Contribution of Migrant Organisations to Income-Generating Activities in their Countries of Origin” focused on the experience of the Philippines in developing money from overseas Filipino workers as pooled investments.
The study placed under a microscope the experience of the nonprofit Economic Resource Center for Overseas Filipinos in promoting time deposits in microfinance rural banks in the Philippines.
“The possibility to save at an MFI [microfinance institutions] is still not widely known among Filipino migrants,” the study said citing the Ercof experience.
Ercof said attracting migrant workers to put money in time deposit schemes in Philippine banks have been a bumpy ride since they began such moves four years ago.
One culprit, according to Ercof executive Ildefonso Bagasao, came from the Frankenstein Philippine banks crafted themselves.
“Another reason why until today no new savings have been sent collectively for microfinance activities in the Philippines are reservations against rural banks among Filipino migrant workers due to past abuses and closures,” Bagasao was quoted in the ILO study as saying.
Ercof said since its formation a decade ago in Geneva, Switzerland, it has been trying to establish a migrant bank to capture remittances and use it for local economic development in the Philippines.
Having a significant share in gross domestic product, remittances fuel the Philippine economy as it enlarges the purse of families here.
The ILO study said that if remittances as pooled investment are used for community development, feeder roads, rural dispensaries, fire engines and primary schools, then public resources can be redirected to other uses, the ILO study said.
But the money sent on a collective basis, the study argues, “account for only a small fraction of total remittances”.
Potentials
THE potential of tapping that fund hasn’t been lost on Ercof.
But a lot of hurdles await Ercof.
In an electronic mail, Bagasao said that linking rural banks or MFIs and migrant remittances remains a challenging area for advocacy.
“This is mainly because of little awareness on the part of the public, including OFWs on microfinance and rural bank products.”
Bagasao added MFIs also fail to reach out to OFWs, one of several problems plaguing the sector.
For example, the Rural Bank Association of the Philippines was embroiled in a lengthy leadership crisis that began almost immediately after Ercof tapped it as a partner in 2006.
Bagasao told the OFW Journalism Consortium they moved to partner with the Rbap after successfully convincing two groups of five and 16 overseas Filipinos in Luxembourg and the Netherlands to open time deposits in two microfinance banks in Bukidnon and Misamis Oriental.
The groups sent the money collectively in order to save costs. An overall amount of 6,900 Euro (equaling P0.55 million at that time) were locked in for five years, exempting it from interest income tax and slapped with an interest rate is 8.5 percent annually.
As MFIs are charged about 12 percent annually for credits from commercial banks, time deposits are cheaper sources for them to obtain funds.
The MFIs can then re-lend the money to micro-entrepreneurs.
Ercof’s 2005 newlsetter the Migrantrepreneur wrote that the migrants’ deposits helped to create at least 100 enterprises per year (at P5,000 capital per micro-entrepreneur) in the areas where the two banks operate.
Term deposits are also a stable source of funding for the MFIs: because the funds are available for a set period of time they facilitate liquidity and gap management, the ILO study noted.
However, Bagasao said a certain volume of time deposits is necessary to obtain a significant impact; hence their attempt to partner with Rbap.
Support
THE success to Ercof’s and other advocates’ initiatives rests mainly on government action –or inaction, in some cases, according to the ILO study.
Governments can set incentives to attract migrants to pool remittances or help MFIs with development projects capture a significant portion of the money, the study said.
“Some governments need first and foremost to build trust or even overcome hostility with (parts of) their diaspora.”
Remittances reflect migrant workers’ “continuing attachment to the country of origin, and possibly a disposition to eventually return home” and the ILO study said governments should hinge on that motivation.
“Governments in countries of origin can lead different policies to keep their diaspora attached to the country of origin.”
But the ILO study noted governments can only do this if it gains support from migrant organizations and other non-state related stakeholders.
Governments should avoid patronizing migrant organizations.
“When promoting all types of migrant organizations’ projects, governments also need to take care to not neglect poorer areas with less migration and therefore less remittances and help through migrant organizations.”
Ercof, however, said rural banks’ moves to promote self-governance, benchmarking, transparency and prudent community banking practices still “remains to be seen if this will convince Filipino migrants”.
Ercof added additional actions can contribute to that: expanding the network of MFIs partnering with migrant groups; professionalism; and, safety of deposits.
“Professionalism is a key to make saving deposits in MFIs attractive to migrants while the safety of deposits is primordial.”
“It is …very important that migrants can trust the MFI for its remittances transfer offer to be successful.”
This article is free, but to publish, broadcast, rewrite, or redistribute this, please write or email the OFW Journalism Consortium
MANILA–MIGRANT workers have yet to be convinced errant banking processes are things of the past before they see the veracity of pooled savings for investment in development projects, a recent study by the International Labor Organization revealed.
The study titled “The Contribution of Migrant Organisations to Income-Generating Activities in their Countries of Origin” focused on the experience of the Philippines in developing money from overseas Filipino workers as pooled investments.
The study placed under a microscope the experience of the nonprofit Economic Resource Center for Overseas Filipinos in promoting time deposits in microfinance rural banks in the Philippines.
“The possibility to save at an MFI [microfinance institutions] is still not widely known among Filipino migrants,” the study said citing the Ercof experience.
Ercof said attracting migrant workers to put money in time deposit schemes in Philippine banks have been a bumpy ride since they began such moves four years ago.
One culprit, according to Ercof executive Ildefonso Bagasao, came from the Frankenstein Philippine banks crafted themselves.
“Another reason why until today no new savings have been sent collectively for microfinance activities in the Philippines are reservations against rural banks among Filipino migrant workers due to past abuses and closures,” Bagasao was quoted in the ILO study as saying.
Ercof said since its formation a decade ago in Geneva, Switzerland, it has been trying to establish a migrant bank to capture remittances and use it for local economic development in the Philippines.
Having a significant share in gross domestic product, remittances fuel the Philippine economy as it enlarges the purse of families here.
The ILO study said that if remittances as pooled investment are used for community development, feeder roads, rural dispensaries, fire engines and primary schools, then public resources can be redirected to other uses, the ILO study said.
But the money sent on a collective basis, the study argues, “account for only a small fraction of total remittances”.
Potentials
THE potential of tapping that fund hasn’t been lost on Ercof.
But a lot of hurdles await Ercof.
In an electronic mail, Bagasao said that linking rural banks or MFIs and migrant remittances remains a challenging area for advocacy.
“This is mainly because of little awareness on the part of the public, including OFWs on microfinance and rural bank products.”
Bagasao added MFIs also fail to reach out to OFWs, one of several problems plaguing the sector.
For example, the Rural Bank Association of the Philippines was embroiled in a lengthy leadership crisis that began almost immediately after Ercof tapped it as a partner in 2006.
Bagasao told the OFW Journalism Consortium they moved to partner with the Rbap after successfully convincing two groups of five and 16 overseas Filipinos in Luxembourg and the Netherlands to open time deposits in two microfinance banks in Bukidnon and Misamis Oriental.
The groups sent the money collectively in order to save costs. An overall amount of 6,900 Euro (equaling P0.55 million at that time) were locked in for five years, exempting it from interest income tax and slapped with an interest rate is 8.5 percent annually.
As MFIs are charged about 12 percent annually for credits from commercial banks, time deposits are cheaper sources for them to obtain funds.
The MFIs can then re-lend the money to micro-entrepreneurs.
Ercof’s 2005 newlsetter the Migrantrepreneur wrote that the migrants’ deposits helped to create at least 100 enterprises per year (at P5,000 capital per micro-entrepreneur) in the areas where the two banks operate.
Term deposits are also a stable source of funding for the MFIs: because the funds are available for a set period of time they facilitate liquidity and gap management, the ILO study noted.
However, Bagasao said a certain volume of time deposits is necessary to obtain a significant impact; hence their attempt to partner with Rbap.
Support
THE success to Ercof’s and other advocates’ initiatives rests mainly on government action –or inaction, in some cases, according to the ILO study.
Governments can set incentives to attract migrants to pool remittances or help MFIs with development projects capture a significant portion of the money, the study said.
“Some governments need first and foremost to build trust or even overcome hostility with (parts of) their diaspora.”
Remittances reflect migrant workers’ “continuing attachment to the country of origin, and possibly a disposition to eventually return home” and the ILO study said governments should hinge on that motivation.
“Governments in countries of origin can lead different policies to keep their diaspora attached to the country of origin.”
But the ILO study noted governments can only do this if it gains support from migrant organizations and other non-state related stakeholders.
Governments should avoid patronizing migrant organizations.
“When promoting all types of migrant organizations’ projects, governments also need to take care to not neglect poorer areas with less migration and therefore less remittances and help through migrant organizations.”
Ercof, however, said rural banks’ moves to promote self-governance, benchmarking, transparency and prudent community banking practices still “remains to be seen if this will convince Filipino migrants”.
Ercof added additional actions can contribute to that: expanding the network of MFIs partnering with migrant groups; professionalism; and, safety of deposits.
“Professionalism is a key to make saving deposits in MFIs attractive to migrants while the safety of deposits is primordial.”
“It is …very important that migrants can trust the MFI for its remittances transfer offer to be successful.”
This article is free, but to publish, broadcast, rewrite, or redistribute this, please write or email the OFW Journalism Consortium
Wednesday, July 30, 2008
Landbank-Laguna Finances Malunggay Farming Through CLAP
Landbank of the Philippines in Laguna has opened a financial facility for malunggay growers through the Cooperative Livelihood Assistance Program.
Last June 24, the Enterprise and Sustainable Livelihood Multi-purpose Cooperative, together with the Laguna provincial government and the Sangguniang Kabataan, unveiled the project entitled "Miracle Malunggay: Kikita Ka Na, Lulusog Ka Pa" in Magdalena, Laguna. It was the first ever malunggay nursery funded by Landbank-Laguna.
According to Dolly Libunao from the Development Assistance Center Area 4B of Landbank-Laguna, their head office is already conducting a research dedicated to malunggay. Landbank is also working on its Development Advocacy Program to help finance livelihood projects like this one.
"Kung ang isang kooperatiba ay hindi makapasa sa regular lending program ng Landbank, mayroon pang advocacy program kung saan kailangan lamang na magkaroon ng marketing program ang income generating project, para sigurado ang pagbalik ng pera," said Libunao.
Wilmer Lebria, chairman of ESLMPC, said that he wants to propagate malunggay farming because of the vegetable's health and nutritional value, as well as its agribusiness potential since coop members would gain additional income.
This project also aims to teach the people of Laguna the importance of malunggay. "Gusto kong imulat ang Sangguniang Kabataan, ang mga local government units na mag-engage sa livelihood na hindi lang basta kikita kundi lulusog pa." Lebria added.
ESLMPC converted 3-½ hectares of unutilized land into a malunggay nursery and seedbank that will provide for the seed requirement of malunggay plantations in the second and third districts of Laguna. The local government of Laguna provided logistical support and technical assistance to the project.
The coop has been tapped to plant malunggay in over 60 hectares of land. This is apart from the 40-hectares in Sta Maria, 8 hectares in Majayjay, 3 hectares in Pila, and 2 hectares in Sta. Cruz, among others. SECURA International is also reported to have acquired the harvest of the nursery.
Laguna is also one of the supporters of the BIONet-BIOCommerce project of the DA-Biotechnology Program Office. No less than Laguna Governor Teresita Lazaro herself confirmed this during a seminar-workshop conducted last year. Such support includes disseminating information on the livelihood opportunities that biotechnology provides, participation and support of municipalities in BIOCommerce activities and active membership in Biotechnology Information and Organization Network.
The provincial government believes this will contribute to attaining food security, help farmers and fishermen to have additional income and livelihood opportunities and boost agricultural modernization.
Lazaro says with the BIONet-BIOCommerce program, the quality of life of her constituents may eventually be upgraded.
Each district of Laguna will embark on a BIOCommerce – Malunggay project, now a priority of the province, and the inauguration of ESLMPC's malunggay nursery actually jumpstarted it.
Through the wonders of biotechnology, the processing of matured malunggay seeds into edible and essential oil, biofuel feedstock, animal feed ingredient, and water purifier is now available. The many applications of malunggay is one big draw for investors and poor farmers and the marginalized.
The program was attended by local government officials led Dennis Lazaro, the provincial administrator of Laguna, and by officers of the DA-BPO, baranggay officials of Magdalena, Sangguniang Kabataan leaders and executives of the Department of Education (DepEd) in Laguna and the Philippine Information Agency, health and nutrition scholars, women, farmers, and local residents. (biolife news service)
Last June 24, the Enterprise and Sustainable Livelihood Multi-purpose Cooperative, together with the Laguna provincial government and the Sangguniang Kabataan, unveiled the project entitled "Miracle Malunggay: Kikita Ka Na, Lulusog Ka Pa" in Magdalena, Laguna. It was the first ever malunggay nursery funded by Landbank-Laguna.
According to Dolly Libunao from the Development Assistance Center Area 4B of Landbank-Laguna, their head office is already conducting a research dedicated to malunggay. Landbank is also working on its Development Advocacy Program to help finance livelihood projects like this one.
"Kung ang isang kooperatiba ay hindi makapasa sa regular lending program ng Landbank, mayroon pang advocacy program kung saan kailangan lamang na magkaroon ng marketing program ang income generating project, para sigurado ang pagbalik ng pera," said Libunao.
Wilmer Lebria, chairman of ESLMPC, said that he wants to propagate malunggay farming because of the vegetable's health and nutritional value, as well as its agribusiness potential since coop members would gain additional income.
This project also aims to teach the people of Laguna the importance of malunggay. "Gusto kong imulat ang Sangguniang Kabataan, ang mga local government units na mag-engage sa livelihood na hindi lang basta kikita kundi lulusog pa." Lebria added.
ESLMPC converted 3-½ hectares of unutilized land into a malunggay nursery and seedbank that will provide for the seed requirement of malunggay plantations in the second and third districts of Laguna. The local government of Laguna provided logistical support and technical assistance to the project.
The coop has been tapped to plant malunggay in over 60 hectares of land. This is apart from the 40-hectares in Sta Maria, 8 hectares in Majayjay, 3 hectares in Pila, and 2 hectares in Sta. Cruz, among others. SECURA International is also reported to have acquired the harvest of the nursery.
Laguna is also one of the supporters of the BIONet-BIOCommerce project of the DA-Biotechnology Program Office. No less than Laguna Governor Teresita Lazaro herself confirmed this during a seminar-workshop conducted last year. Such support includes disseminating information on the livelihood opportunities that biotechnology provides, participation and support of municipalities in BIOCommerce activities and active membership in Biotechnology Information and Organization Network.
The provincial government believes this will contribute to attaining food security, help farmers and fishermen to have additional income and livelihood opportunities and boost agricultural modernization.
Lazaro says with the BIONet-BIOCommerce program, the quality of life of her constituents may eventually be upgraded.
Each district of Laguna will embark on a BIOCommerce – Malunggay project, now a priority of the province, and the inauguration of ESLMPC's malunggay nursery actually jumpstarted it.
Through the wonders of biotechnology, the processing of matured malunggay seeds into edible and essential oil, biofuel feedstock, animal feed ingredient, and water purifier is now available. The many applications of malunggay is one big draw for investors and poor farmers and the marginalized.
The program was attended by local government officials led Dennis Lazaro, the provincial administrator of Laguna, and by officers of the DA-BPO, baranggay officials of Magdalena, Sangguniang Kabataan leaders and executives of the Department of Education (DepEd) in Laguna and the Philippine Information Agency, health and nutrition scholars, women, farmers, and local residents. (biolife news service)
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