Union Bank of the Philippines and Philippine Guarantee Corp (Philguarantee) sealed a partnership with a program that aims to support SMEs amid the COVID-19 pandemic.
Under the agreement, PHILGUARANTEE will cover 50 percent of new and/or incremental MSME loan exposure for UnionBank, allowing the bank to continue lending to a wider base of micro, small and medium enterprises (MSMEs) particularly those who have been greatly affected by the pandemic, while at the same time mitigating risks.
With this, UnionBank continues to pursue its transformational journey in supporting as many small enterprises to grow their businesses through digital solutions and alternative credit underwriting, which may have been put on hold during these challenging times.
The collaboration aligns with PHILGUARANTEE’s role to encourage the banking sector to continue lending to MSMEs under the government’s economic recovery program due to the pandemic.
Earnings of UnionBankslipped by six percent to P 4.5 billion in the first half from P 4.79 billion in the same period last year as provision for credit losses amounted to P6.99 billion. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that loans provided by banks to entrepreneurs including large enterprises that are booked in compliance with their reserve requirements, board close to P100 billion as of July 23. The rising amount indicates that banks have continued to grant new loans or re-finance existing ones to MSMEs and large enterprises even through the quarantine.
With additional reports: Tribune.net.ph, Philippine Star, Lawrence Agcaoili
Image Source: Union Bank, ADB Photo | Chor Sokunthea
