By Francis Allan L. Angelo
The Philippine Guarantee Corp (PHILGUARANTEE) has reported double-digit growth in both credit guarantee support and the number of beneficiaries, a significant milestone praised by Finance Secretary and PHILGUARANTEE Chairperson Ralph G. Recto. This achievement underscores the organization’s critical role in providing financial access to marginalized groups.
“This robust performance is a testament to our country’s strong credit guarantee system. I congratulate the hard-working men and women of PHILGUARANTEE for ensuring that our small- and medium enterprises and marginalized sectors are given wider access to financing support, giving them the opportunity to grow alongside our economy,” Recto said.
PHILGUARANTEE, a government-owned and controlled corporation (GOCC) resulting from the merger of five Philippine Guarantee Programs and Agencies under Executive Order No. 58 (2018), has recorded significant growth since its consolidation in 2019.
Its cumulative total guarantee portfolio reached PHP 236.98 billion as of December 2023, marking a 28.82% increase from the previous year.
The guarantee support has benefited sectors such as socialized housing, micro-, small-, and medium-sized enterprises (MSMEs), and small farmers and fisherfolk. The number of beneficiaries rose to 426,378 in 2023, a 27% increase from 2022.
PHILGUARANTEE’s financial performance has been equally impressive, with total revenue reaching a historic high of PHP 5.32 billion in 2023, a 103% increase from the previous year. Revenue sources include guarantee fees, premiums, commitment fees, and real estate transactions.
Dividend remittances to the national government also soared to a record PHP 2.42 billion in 2023, up from PHP 746 million in 2022. Cumulative dividend remittances since the merger in 2019 have totaled PHP 4.03 billion.
To enhance its mandate, PHILGUARANTEE is finalizing proposed changes to its charter to harmonize laws and administrative orders covering the five merged agencies: Home Guaranty Corporation, Agricultural Guarantee Fund Pool, Industrial Guarantee Loan Fund, Small Business Corporation, and the Philippine Export-Import Credit Agency.
These changes aim to make PHILGUARANTEE more responsive to its mission of providing credit supplementation and development financing, particularly in key economic areas crucial for job and livelihood creation.
In line with its Strategic Pillars and Sustainable Institutional Goals for 2023-2025, PHILGUARANTEE plans to enhance portfolio management, improve processes with a focus on digitalization, and strengthen its organization through personnel development. The state firm also targets sustaining a net income of PHP 1.0 billion to ensure positive returns.
