State-guaranteed loans hit P554 billion in 2024

MANILA, Philippines — The government has provided guarantees to over P550 billion in loans last year with more Filipinos benefiting from credit supplementation.

In a statement, state-run Philippine Guarantee Corp. (PhilGuarantee) said it recorded a cumulative guaranteed gross loan portfolio of P554.06 billion in 2024, up by 20 percent from P461.62 billion in 2023.

This also means that PhilGuarantee backed the loans extended to 928,308 borrowers, rising by 12 percent as more Filipinos gain access to financial assistance through credit supplementation.

The agency said the growth in the loan portfolio was a result of the merger of the Philippine Export-Import Credit Agency and the Home Guaranty Corp., as well as the transfer of guarantee functions and funds from the Small Business Corp.

The new structure also placed the Agricultural Guarantee Fund Pool and the Industrial Guarantee and Loan Fund under a unified management.

As such, the changes enabled PhilGuarantee to be more responsive to its thrust of providing credit supplementation and development financing objectives, particularly in key economic areas.

Similarly, last year’s performance reflected development financing support in the housing sector at P449.11 billion and micro, small and medium enterprises at P8.93 billion.

Also covered were PhilGuarantee funds such as the Abot-Kaya Pabahay Fund (P71.69 billion), Agriculture Guarantee Fund Pool (P24.32 billion) and the Electric Cooperative Partial Credit Guarantee Program (P30 million).

Further, PhilGuarantee’s partner lending institutions rose to 194 in 2024 amid stronger capital mobilization through the efficient use of guarantee facilities.

Last year, the agency’s total assets reached P57.41 billion, with equity growing to P25.86 billion and liabilities decreasing to P31.55 billion.

PhilGuarantee’s income likewise picked up to P2.12 billion, exceeding its target of P1.7 billion.

Being the principal agency for state guarantee finance of the Philippines, PhilGuarantee is primarily mandated to perform its development financing role through the provision of credit guarantees to support trade and investments, exports, infrastructure, energy, tourism, agriculture and other priority sectors of the economy.