Connect with us

Hi, what are you looking for?

Stock

NEDA calls for further opening to encourage banks to lend more

PHILSTAR

By Alyssa Nicole O. Tan

THE NATIONAL Economic and Development Authority (NEDA) said businesses need to be allowed to operate under less restrictive rules to encourage banks to release funds into the economy.

“The more sustainable way to help businesses is to first open the economy,” Secretary Karl Kendrick T. Chua said at a Senate hearing Wednesday. “We have restricted them for more than 18 months already.”

“Once we are able to open (the economy), then we would have this virtuous cycle wherein those businesses that need financing or grants… will be (supported) by the financial sector,” he added.

He said banks are currently risk-averse because there is no assurance they will have reliable revenue over the life of the loan, noting, “There is a lot of hesitation and uncertainty.”

Senator Pilar Juliana S. Cayetano, who chairs the Committee on Ways and Means, sought proposals for more financial assistance, which Mr. Chua called insufficient to deal with the problem and likely to trigger a “chicken-and-egg cycle.”

“The businesses don’t operate, tax revenues fall, then we do not have additional revenue to provide more targeted support,” he said. “If we had to provide ayuda (cash aid) every month and every time, we would have easily run out of money.”

Mr. Chua said the underlying necessity is the opening of the economy. “Otherwise, we will be putting or lending money to firms or people that cannot turn that money around and become productive.”

NEDA Undersecretary Rosemarie G. Edillon noted the need to “COVID-proof” businesses, adding that economic planners are working with the Department of Trade and Industry to reconfigure places of business to minimize confined spaces with poor ventilation, crowded places with no physical distancing, and close-contact settings with face-to-face interaction.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Stock

PCOO.GOV.PH This article is not meant to denigrate the economic achievements of the Duterte administration, nor to say the administration has achieved nothing but...

Stock

ED US- UNSPPLASH Even though national supply is lacking, the government must find a concrete plan of action that will equitably distribute the vaccines....

Stock

ALICE DIETRICH-UNSPLASH In an environment where Filipino manufacturers are hard-pressed to compete due to high manufacturing costs, those who thrive must be celebrated and...

Stock

ORIGINAL PHOTOS BY CHRIS LEBOUTILLIER/ADRIAN SWANCAR-UNSPLASH CLIMATE CHANGE poses the biggest existential threat to humanity. As world leaders prepare to renew their pledge to...

Stock

THE NETFLIX series Squid Game is played on a mobile phone in this picture illustration taken Sept. 30. — REUTERS NETFLIX estimates that its...

Stock

A woman walks across the city centre bridge in Melbourne, Australia, July 16, 2021. — REUTERS/SANDRA SANDERS MELBOURNE — Melbourne, which has spent more...

You May Also Like

Economy

By Diwa C. Guinigundo Bangko Sentral Governor Ben Diokno announced that starting Sept. 18, the BSP will offer P20 billion ($411 million)...

Economy

A leading investment bank has predicted the government will extend the furlough scheme in an attempt to slow the “large and rapid deterioration”...

Stock

Stock Markets7 hours ago (Jul 31, 2020 08:15PM ET) 2/2 (C) Reuters. FILE PHOTO: James Murdoch, the son of media mogul Rupert Murdoch, and...

Economy

TikTok is one of the most rapidly growing platform. People across all the spectrum of age, gender, communities are joining the platform to...

Disclaimer: InvestmentDiets.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 InvestmentDiets. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!