Philippines to Boost State Bank Capital Under 160b-Peso Stimulus

Philippine govt will increase the capital of Land Bank of the Philippines and Development Bank of the Philippines as part of its 160 billion-peso stimulus plan to counter the impact of coronavirus outbreak, Finance Secretary Carlos Dominguez says.

• These state-owned banks will buy loans from smaller lenders so they can lend more to small- and medium-scale businesses, Dominguez says at virtual forum
• Philippine Guarantee Corp. to receive 20b pesos from govt to be able to guarantee loans extended by private banks to small- and medium-enterprises
• Finance Department also proposing an immediate cut in corporate income tax rate to 25% from 30% starting July, Economic Planning Secretary Karl Chua says at same forum
• NOTE: Philippines Is Bracing for Deepest Slump in Three Decades

To contact the reporter on this story:
Andreo Calonzo in Manila at acalonzo1@bloomberg.net

To contact the editors responsible for this story:
Cecilia Yap at cyap19@bloomberg.net

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