Casiño wants IMF-pledged 1 billion dollar for lending to credit-starved local SMEs

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Former Bayan Muna Rep. Teddy Casiño. Contributed Photo
Bayan Muna Rep. Teddy Casiño. Contributed Photo

By Joey Natividad
Special Correspondent

NAGA CITY (BicolToday.com/27-June-2012) – Bayan Muna Partylist Representative Teddy Casiño on Tuesday (June 26) urged that the USD 1 Billion pledge as loan for the International Monetary Fund (IMF) should be lend-out instead to credit- starved micro, small and medium enterprises (SMEs) in the country, rather than prop-up some backward European struggling economies.

The solon also called for reforms in the monetary system by mandating the prohibition of the President and finance officials from lending public funds to foreign banks, the International Monetary Fund (IMF), and financial institutions which will become detrimental to domestic growth and development needs.

This is his sharp reaction to the USD I Billion pledge the Philippines will earmark for the IMF as its contribution to multilateral efforts in propping up some backward European economies wanting badly needed capital investment programs.

The solon, belonging to the progressive bloc, urged for changes in the charter of the Bangko Sentral ng Pilipinas (BSP) banning the President and finance officials dipping into public funds for lending to other financial institutions, the IMF, and foreign banks that will prejudice domestic economic interests, especially the country’s local enterprises.

“Three percent (3%) interest to be earned from the IMF is miniscule compared to rates lent out to local enterprises, government agencies and local government units,” said Casiño in a statement sent to BicolToday.com.

Casiño lambasted on so-called finance wizards as “hare-brained” in their handiwork to gain “international media mileage for the Aquino administration” by dangling the USD 1 Billion pledge at the expense of the “suffering Filipino masses who aspire for economic deliverance, and the cash-starved, enterprising rural Filipinos who are searching for capital.”

The solon took snipes on the so-called “Ivy-League bright boys” in the BSP, referring to those European, American-educated financial advisers who got their diplomas in Harvard, Yale, and other elite U.S. education institutions. “These bright guys are secretly salivating for positions in the IMF, World Bank, and the Asian Development Bank,” he stressed.

He scored on the Aquino Administration that the national debt just breached the PhP 5 Trillion level early this year, meaning the country is more in debt than ever.

“More than 700,000 micro, small, and medium enterprises in the country, including millions in the informal sector are so desperate in availing for credit, that they have to avail from money lenders in usurious rates,” he said. “The money (USD 1 B) should be lend out to our small business” [BicolToday.com]

Copyright 2012 BicolToday.com. All rights reserved.  Read BicolToday.com Syndication Policy.

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