With 185 affirmative votes, 16 negative votes and two abstentions, lawmakers approved House Bill No. 7749 also known as Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act.
The GUIDE bill would provide a total of P55 billion to 3 government financial institutions – the Philippine Guarantee Corporation (PGC), Development Bank of the Philippines (DBP), and Land Bank of the Philippines (Landbank) so they can
expand their loan assistance programs, rediscounting and other credit accommodation facilities.
- P35 billion will go to Landbank for the expansion of its loan programs to help MSMEs in agriculture.
- P15 billion will go to DBP to expand its loan programs for MSMEs engaged in the infrastructure, service, and manufacturing industries.
- P5 billion will go to PGC to increase its maximum loan guarantee coverage per borrower as well as reduce guarantee fees and other similar schemes.
The bill also leads to the creation of Accelerating Recovery to Intensify Solidarity and Equity or ARISE Inc., a special holding company that will rehabilitate strategically important firms affected by the pandemic, and will ensure equity participation among qualified businesses. ARISE Inc. also lets DBP and Landbank enter into joint venture agreements with pandemic-affected companies. The special holding company will enjoy exemptions from procurement and competition laws, and tax privileges.