THE CONSOLIDATION of government-run guarantee firms is expected to go ahead by the third quarter of 2018, the Treasury said.
The Department of Finance (DoF) has said that it is planning to consolidate Government-Owned and -Controlled Corporations (GOCCs) in the guarantee business under the Philippine Export-Import Credit Agency (PhilEXIM), to streamline surety services.
Asked about a timeline for the merger, National Treasurer Rosalia V. De Leon told reporters last week: “About third quarter of next year.”
Ms. De Leon said that the Treasury has submitted a memorandum to the Governance Commission on GOCCs (GCG), and Development Bank of the Philippines (DBP), and have scheduled an en banc meeting on Oct. 3, to discuss the merger.
The GCG — which the DoF Secretary is an ex-officio member of — is a central advisory body for the GOCCs, and evaluates their performance. It is authorized by Republic Act 10149 to decide on their reorganization, merger, restructuring, abolition or privatization.
“In the meantime we have engaged the DBP to be our financial adviser,” she added.
The proposed scheme would require a P500 million capital infusion to PhilEXIM, which is programmed in this year’s budget.
However there will also be a seed fund generated from the respective budget allocations of those guarantee corporations.
“We won’t be needing additional funding under the General Appropriations Act, because we will be using these funds for these corporations to amend the paid-up capital for PhilEXIM,” she added.
The merger will include the Home Guaranty Corporation, Small Business Corporation, and Quedan & Rural Guarantee Corporation, the DoF said. — Elijah Joseph C. Tubayan
