KEYNOTE SPEECH OF SECRETARY RAMON M. LOPEZ
P3 CREDIT DELIVERY PARTNER FORUM
25 July 2019, PICC
As delivered
This program is really a brainchild of the President. During the first few months of his Presidency pa lang, when we were doing a Presidential visit, I remember the usual President Duterte he calls a meeting 11pm 12 midnight. So after the meeting with the Filipino community, so we were gathered in one room those who joined that visit and it’s usually a brainstorming on what can we do for the people.
Actually we started with his desire to really help the bottom of the pyramid. ‘Yun talaga very sincere ‘yung kanyang call to help those who have less in life – the marginalized group.
This particular example, while a mayor before, he would use to drive incognito — taxi driver noon doon sa Davao. You heard the story. He’s been seeing mga palengke vendors 2am 3am really looking desperate but of course we would see them facing their paninda.
And I was wondering di ba saan nangagaling ‘yung puhunan nila and we all know ‘yung puhunan talaga nila karamihan galing sa 5-6. And you know the rates of 5-6 and sabi nya talaga during our brainstorming is that we really have to kill the 5-6 and really come up with a program. Di mo naman pwedeng just stop the 5-6. And especially as you know, one particular nationality ang sikat sa 5-6. Di ko na i-identify kasi maraming guilty sa 5-6. It’s not only them. So the point is, if we are to stop the program there has to be a replacement. So we thought about to come up on a program. There have been a lot of micro finance programs before and partly based on reports, they have not been successful. Medyo ‘yung iba na-politicize or napunta sa iba ibang group. In other words, repayment rates were very bad.
So when we were crafting the concept we said that for this to try immediately with high retainment rates, we have to partner with guys like you. The MFIs, the cooperatives, the wet market vendor association because you would know your members or you would have a better understanding of the situation at the grassroots because you are already there. And so we want it to really spread this immediately.
If government, we still have to create the infrastructure. Maghihire pa tayo ng opisina, ng tao. Talagang it will take years and so we rely on partners like you. So actually we’ve done a lot of programs always with in partnership. That’s why orientation coming from the private sector always partnership with the private sector.
And so I think immediately even just on the first 6 months of the program, P3 when it was starting ang bilis ng implementation and deployment. And with the help of course support of Usec. Zeny Maglaya and at that time wala pa si Pres. Luna but a former President we have to give credit, tumulong siya siyempre sa pag-umpisa nitong programa na to.
And right on this time ang bilis nadeploy and we’re so happy with the implementation. Of course, there will be improvements, refinements in the system, the conduit system became now a credit delivery partner system and that is through the initiatives nila Pres. Luna and Melvin on how we can really improve further on the delivery of the service.
There’s still some questions on why 2.5 percent monthly. Obviously I’ve always defend it, that’s a lot lower than 20% per month or maybe per week coming from the 5-6. But we have to cover for the operating cost etc. People their collecting every day, every week or disbursing the loan. So may reason din kung bakit ganun ang rate.
And that’s also in line with market determine rates. We don’t want to compete also with the existing MFIs di ba? So that’s the idea. But we see if you want to supplement and fast track the disbursement of loans especially to those in need. I must say we are successful enough. So far we’ve lend to almost 90 thousand, 89 thousand plus and over 300 credit delivery partners. So many good numbers. And despite the Php 2 billion pa lang ang naibigay sa pondo na to – Php 1 billion in 2017, Php 1 billion in 2018, napatakbo na natin and the loan has come up almost to Php 3 billion pesos.
Ibig sabihin, the money has been returned and has been redeployed Php 3 billion ‘yung lending level even Php 2 billion palang from same capital. And for 2019, with the help of Sen. Pimentel, may additional na Php 1.5 billion ulit. That is to allow us to lend out to more CDP’s – credit delivery partners so that’s the idea. And hopefully, we’re able to multiply the 90 thousand that we have right now na naabot .
And I think credit to all of you because isa po sa nabanggit ni Presidente nung SONA ‘yung Pondo sa Pagbabago at Pagasenso at ‘yun po ay dahil sa inyong lahat . Salamat po sa inyo. Binalita po ‘yung 86,000 pa ang nabanggit nya nun because that was I think the end of June report but pero tuloy tuloy pa din mabilis ang pag-akyat. So salamat sa inyo for really your support there.
Now, really what’s important in the P3 is the fact that we are able to change lives. ‘Yun po ang gusto ng ating Pangulo na ‘yung mga nasa ilalim talagang magbago ang buhay nila and we’ve cited many examples with the help of media, some advertisement featuring the beneficiaries. So ang ganda ho, very inspiring which really touch the lives of many.
I guess those 90 thousand borrowers would have their own respective stories and it’s really inspiring. Nagbago ang buhay. Si Tatay Oly na shoemaker dati ‘yung kwento nya pinuntahan namin. Tatlo ang 5-6 pinagkakauutangan niya. He was borrowing from three 5-6 lenders. Then he got the P3. He was able to distinguish all those loans and now just borrowing from P3 na sya. So isa na lang at mababa na ‘yung interest.
So like those are very inspiring. The widow of slain combatant in Marawi, natuloy nya ‘yung pangarap nya having a grocery store. Dati sari-sari store lang maliit na pwesto. Now, she was able to expand it.
Even the palengke vendor in many places. ‘Yung maliit na pwesto napalaki kasi imbis na interes sa 5-6 napupunta sa paninda – greater working capital. So lot of just miracles or success stories. So with that, we’re very grateful to all of you for being a partner. And of course, we want to grow this moving forward with the help of technology. We want to use the PesoNet and lahat po ng prinisent ni Central Bank Director Deputy Director Dizon para ho we can really propagate this loan much further.
The digitalization is definitely the way forward. The President has emphasized Ease of Doing Business in the last SONA. I think he mentioned it three times. So Ease of Doing Business is really putting everything online – putting everything in the smartphone.
If a borrower can really lend from the smartphone and get the money smartphone din and payback using the smartphone that’s the Ease of Doing Business.
We’re trying to do the same in registering a business. Starting a business, smartphone na rin ‘yan eventually. So hopefully, may project na kami ngayon, I can see the prototype – it’s possible.
We’re now doing the beta format wherein when you register in DTI, SEC, the BIR, Mayor’s permit, the Pag-ibig, Philhealth, SSS – everything in that one form for that business and all of those agencies in that one application form. Section by section. You will get fairly automatic approval especially for less complicated, low risk businesses.
So we are doing that so that at the end of that filling out activity – so you file, you submit and then you pay dun na rin. So may Instapay at PesoNet na dinidevelop. And after that you print. So you print now a business permit. So that’s the end goal there.
And if you want an original format, that’s the time you go to the Mayor’s office to get your business permit but it’s optional. So that’s a work in progress that’s we’re now having. And hopefully that for the P3, digital transformation is the way forward – no other way.
‘Yun pong kaninang sinasabi ni Dir. – as ‘yung center receiver, ‘yung iba receiver na. Di pwedeng maging receiver siya all the way. Talagang magko-convert na ‘yun because maiiwan siya. So it’s really not only just to be competitive. It will be the new norm moving forward.
So allow me just to again to emphasize ‘yung pasasalamat sa inyo at this point. And really just encourage you to get more involved, get bigger amounts so that you can lend to more, fix your systems, let’s just make it foolproof.
Congratulations on high repayment rates and let’s just make this work. At the end of the Administration of the President Duterte by 2022 talagang we will be able to reach out to billions already of borrowers because remember the P3 is supposed to replace about Php 30 billion worth of 5-6. So we are far from that. We are just on the Php 3.5 billion. So this year, Php 30 billion ang hinahabol natin na palitan. But the good thing also is that as we are present in some areas — tayo ang magiging benchmark. ‘Yung 5-6 balita namin from 20% a month binababa na nila to 5% . I think we’ve been hearing feedback from that one. So it’s creating a — you know a competition. And that’s good for the people. So dun pa lang we are able to help.
So again, thank you once again and more power to all of you.
Magandang umaga po!♦