PHILGUARANTEE inks MOU with Philippine Constructors Association
Philippine Guarantee Corporation (PHILGUARANTEE) signed on July 6, 2021 a Memorandum of Understanding (MOU) with the 1,500 member-strong Philippine Constructors Association, Inc. (PCA), an association of Philippine contractors since 1945. The MOU shall strengthen the linkage of the PCA’s MSME contractors with PHILGUARANTEE for the provision of credit guarantee programs, to support their working capital requirements especially during this pandemic period.
In a virtual ceremony, PHILGUARANTEE President and CEO Alberto Pascual and PCA President Wilfredo Decena signed the MOU with the presence of representatives from the PCA, as well as support of other banking institutions such as the BPI and RCBC, and the team of the Priority Sectors Guarantee Group led by SVP Celso R. Gutierrez. The Philippine Overseas Construction Board (POCB), which has made the partnership possible, was also in attendance during the virtual event, led by the POCB representative to the PHILGUARANTEE Board, Director Michael Reyes.
“This significant occasion is another demonstration of the vision and objectives fulfilled for the PHILGUARANTEE,” said PCEO Pascual. He explained that with this cooperation between PHILGUARANTEE and PCA it has provided the means for MSMEs contractors/sub-contractors to take part in the nation-building efforts and in the process realize the Corporation’s mandate to support infrastructure development.
PCEO Pascual welcomed the MOU signing specially for the PCA Chapters which are nationwide and for which the PCA’s 1,500 strong membership will be able to benefit from.
As of June 30, 2021, PHILGUARANTEE approved a total of P1.738 Billion in credit guarantee facilities with 12,686 beneficiaries, in line with the Corporation’s key assistance role of encouraging the banking sector to continue lending to MSMEs under the government’s economic recovery program due to the COVID-19 pandemic. Out of the total portfolio, P1.643 Billion with 12,633 end-borrowers were MSME-beneficiaries and 38.51% or 5,758 end-users with total guaranteed loan of P669.327 Million were catered outside Luzon area.
PCEO Pascual added that this period of a pandemic-led economy has made every Filipino resurgent and resilient, and for which in this time of crisis, the spirit of Bayanihan is demonstrated by way of partnerships coming together in the name of helping small and medium-sized businesses rise from the challenges of the present.
For his part, PCA President Decena said that PHILGUARANTEE is joining PCA and is a big help for the rebound of its members – but what is important is that it never let go of the passion and perseverance until it recover. While importance is given to MSMEs, all continuously work in minimizing the financial losses that everyone experience in this challenging times and which has burden contractors.
Decena also hopes that the facilities can be extended to its members who are adopting new technologies via digitalization of construction.