The government must immediately establish an Economic Recovery Fund of at least P500-B to be extended to small and medium business enterprises which were crippled by the effects of the COVID 19 lockdowns and restrictions.
The Philippine middle class, the sector hardest hit by the COVID 19 Pandemic, direly needs access to a Zero or Low Interest Recovery Fund suggested to be payable in at least 5 to 10 years to be able to get back on its feet.
Last week, I made an early morning visit of the Cloverleaf Market in Balintawak, Quezon City to talk to small and medium business enterprise owners.
The appeal for government support and help from the small business owners was heart-rending.
Many of them are struggling to recover from the economic difficulties they faced as they had to close down their establishments due to the stringent health protocols.
To be able to recover, many of them had to run to money lenders who charge usurious interest rates called 5-6.
There is no other option for them because the institutional lenders, including government-owned banks, have tedious and lengthy loaning processes.
This would trigger a spike in the cost of living as prices of goods and services will have to be increased to cover the high interest rates.
It is my view that the government does not even have to make additional borrowings to fund the program.
All that is needed is initially is to utilize the existing loan funds of government lending institutions and create a special window with reduced interest rates and faster processing procedures.
In the 2023 Budget, there should be a refocus on the objects of expenditures through a legislation which would create the National Economic Recovery Fund.
Bawasan muna ang budget ng mga low-priority projects upang makaipon ng pera para sa pondong ito.
Buhusan muna ng tulong ang mga maliliit na negosyante para makabangon muli.
#KungGustoMaramingParaan!
#GovernanceIsCommonSense!
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