DBP OK’d P25-B infrastructure and logistics loans in Jan-July

MANILA – The Development Bank of the Philippines approved P25.55 billion worth of loans for the transport infrastructure and logistics sector from January to July as the state-run lender expressed readiness to support the Marcos administration’s efforts to ease inflation especially on food products.

Such loans were extended to 189 borrowers nationwide under the DBP’s Connecting Rural Urban Intermodal Systems Efficiently (Cruise) program, which serves as their flagship facility for the transport infrastructure and logistics sector.

Michael de Jesus, president and chief executive of DBP, said in a statement the bank is prepared to extend the needed technical and financial assistance to strategic initiatives of the Marcos administration.

In particular, “DBP would ensure the successful implementation of the three-year logistics master plan aimed at reducing the cost of commodities, particularly food,” de Jesus said.

Last August, the President approved a logistics action agenda, aimed at promoting food availability, accessibility, and affordability through strategies that would modernize the country’s food distribution system, increase investments in logistics infrastructure, and address other supply chain gaps.

The CEO added that DBP intends to work closely with the Department of Trade and Industry, Department of Agriculture and other government agencies and key stakeholders to modernize the food distribution system and storage and to address prevailing supply chain gaps.

De Jesus said that as of the end of the first half of 2023, DBP has allocated P281.6 billion in lending funds for projects under the infrastructure and logistics sector.

The amount represents 55.5 percent of DBP’s total loan to borrowers, pegged at P506.9 billion.

In the first semester, total loan releases to borrowers engaged in the infrastructure and logistics sector reached P45.5 billion.

De Jesus said that, at the same time, deals in the pipeline are around P18.5 billion.

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The article was originally published in Inquirer and written by Ronnel W. Domingo.