PCCI to get P3 B from Bank of China

MANILA, Philippines - The Bank of China (BOC) is set to provide P3 billion to the country’s largest business group to assist in the development of more micro, small and medium enterprises (MSME).

Philippine Chamber of Commerce and Industry (PCCI) honorary chairman Sergio Ortiz-Luis said the business group and the BOC are currently negotiating details of the funding.

“PCCI will be given P3 billion by BOC which we will loan to MSMEs.  Beneficiaries will be MSMEs that will be determined by PCCI,” Ortiz-Luis said.

“We will come out with a proposal for its structure but it’s intended to help different groups even at a loss. We are still discussing how it will be rolled out,” he added.

Given that the PCCI has no capability to operate a lending scheme, Ortiz-Luis said the loan would likely be coursed through SB Corp.

He noted, however, that PCCI and SB Corp. would come out with rules that would make the loan more attractive and helpful to MSMEs.

BOC, the fourth largest bank in the world, has been undertaking steps to further strengthen economic ties between the Philippines and China by acting as a bridge between Chinese and Philippine MSMEs.

BOC signed a strategic cooperation agreement with the Department of Trade and Industry, PCCI and the International Chamber of Commerce Philippines, as witnessed by President Duterte, in Beijing in October last year.

The agreement comes together with BOC’s pledge to open a $3 billion credit facility to aid in the development of Philippine industries and infrastructure.

Aside from financial assistance, the BOC is set to bring 150 Chinese investors when it participates in the 12th ASEAN Finance Ministers’ Investors Seminar happening this month in Mactan, Cebu.

Last month, more than 320 SMEs from China and 350 from the Philippines already participated in the matchmaking process as part of the BOC SME Cross-Border Trade and Investment Conference in Manila.

The ASEAN Finance Ministers’ Investors Seminar is an annual event where ASEAN ministers meet with investors, both within and outside the region, to promote ASEAN as an attractive investment destination. 

BOC’s matchmaking services are seen enabling Filipino companies to interconnect with SMEs in China and help them share in the global value chain.

“Our partnership with the Philippines aims to open opportunities for local businesses and bridge markets across the globe. By promoting trade, we hope to accelerate growth for both our countries,” BOC country head Deng Jun said.