DBP, CDA ink agreement to provide financing to cooperatives

STATE-RUN Development Bank of the Philippines (DBP) has partnered with the Cooperative Development Authority (CDA) to allow cooperatives to tap the bank’s lending programs for their projects. 

DBP President and Chief Executive Officer Emmanuel G. Herbosa said in a statement on Friday that the state-run lender and CDA signed a memorandum of agreement to help boost cooperative enterprises in the country by giving them access to financing. 

Mr. Herbosa said the bank will offer financing assistance to select cooperatives through its three credit lines: a facility that lends to rice farmers and their cooperatives; one that helps micro, small and medium enterprises (MSMEs) recover from the pandemic; and another program under which the bank provides working capital needed by rice cooperatives to improve their integration with the industry value chain. 

Meanwhile, the CDA will identify the cooperatives that are eligible to tap these loan facilities to make sure the projects to be financed by DBP are viable and sustainable. 

“DBP recognizes our cooperative enterprises as drivers of countryside development. Thus, it is our aim to reach out to them, with the ultimate goal of improving the livelihood of our cooperative-members as they strive to recover from the ill-effects of the pandemic,” Mr. Herbosa said in the statement. 

DBP is the country’s designated infrastructure bank with total assets worth P1.102 trillion as of March, making it the six biggest lender locally. As a development bank, it also provides credit to other sectors like MSMEs, environment, and social services and community development. 

Meanwhile, CDA is mandated to develop cooperatives in the country and help boost the sector. There are at least 18,065 cooperatives registered with the agency. 

DBP’s net income went down by 62% to P547.83 million in the first quarter amid rising expenses. — B.M. Laforga 

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