In stressing the need to reinvigorate the domestic market, President Gloria Macapagal-Arroyo today ordered officials of government financial institutions (GFIs) to step up efforts in providing loanable funds to small and medium enterprises (SMEs).

The President, who made the emphasis during her meeting with GFI officials at the State Dining Room in Malacaņang, also ordered the GFIs to focus on special niches in the credit market.

"It is important that we manage our financial resources or loanable funds of government corporations like a tight ship," the President said.

The President noted that in the past, the GFIs have always followed market forces. But this time, she said, there is a need for directed credit.

The President further noted that the best and the most reliable source to boost the domestic market are the SMEs.

Among the GFIs represented in the meeting were the Philippine Postal Savings Bank, Land Bank of the Philippines, Development Bank of the Philippines, United Coconut Planters Bank, Small Business Guarantee and Finance Corporation, Quedan and Rural Credit Guarantee Corporation (Quedancor), Livelihood Corporation, Technology and Livelihood Resource Center, PhilExim (formerly Trade and Investment Development Corporation of the Philippines), and Overseas Workers Welfare Administration.

According to the agencies, the total loan portfolio for the SMEs of the leading 11 GFIs reached P91.2 billion as of December 2001.

From January to June 2002, the total loans and guarantee extended by the GFIs to SMEs amounted to P5.9 billion. The total beneficiaries for the same period were 69,000 SME borrowers.

In 2001, the biggest lender among the agencies were the LBP and DBP (with P22 billion) while the largest guarantor was Quedancor (P20.3 billion).

The National Capital Region and Regions 3 and 4 received the highest share of SME loans from both GFIs and private banks.

The GFIs also received 14 percent of the loan applications of SMEs while private banks covered the rest.

During the meeting, the President also discussed ways on how to improve SMEs’ access to credit and how it can likewise increase capacity to absorb credit.

The President noted her "One Town, One Product, One Million Pesos for SME Loan," where the government lends out P1 million to a town (to be paid out to LBP) for the development of a single indigenous product.

The President has said the government would convince banks to open more credit windows for SMEs instead of loaning out money to less productive sectors like luxury properties and factories with excess capacity.

She noted the SME’s capability to effectively circulate capital and increase domestic consumption, but stressed that the SMEs needed plenty of capital.

President Gloria Macapagal-Arroyo today joined the nation’s public servants in a eucharistic celebration at the Heroes Hall at Malacaņang to commemorate the 102^nd anniversary of Philippine civil service.

With the President were Executive Secretary Alberto Romulo, Presidential Assistant for Ecumenical and Media Affairs Conrado Limcaoco, Presidential Assistant for Agricultural Modernization Angelito Sarmiento and Presidential Assistant for Education Mona Valisno, among others.

Monsignor Augusto Laban, chaplain of the Office of the President, officiated the Mass, offered the mass to bring to mind the efforts and sacrifices of the country’s civil workers in assuring faster and quality services in an effective and efficient bureaucracy.

President Macapagal-Arroyo, in her two State of the Nation Address (SONA) had stressed on good governance and ridding the government of people involved in graft and corrupt practices to pave the way in building a strong Republic.

The Civil Service Commission (CSC) celebrates this month the anniversary of the Philippine civil service with the theme "Lakas ng Serbisyo Sibil, Lakas ng Bayan (Strength of Civil Service, Strength of the Nation)."

CSC Chairperson Karina Constantino-David said the anniversary celebration would be highlighted with the conferment of the 2002 Outstanding Public Officials and Employees Awards by the President.

The awards to be conferred are the Presidential Lingkod Bayan Award for outstanding individual work performance and the Dangal ng Bayan Award for exemplary ethical behavior or public service act.

These are considered as the highest awards in the civil service.

David said a concert-tribute for state workers, dubbed "Parangal ... Pasasalamat 2002" would also be staged. During the activity, the CSC will confer the Pagasa Award for outstanding individual or group work performance, and the Katangi-tanging Bihasang Manggagawa Award for exemplary blue-collared workers in government.

David called on all government agencies nationwide to actively participate in the activities set for the anniversary and to help ensure the success of the occasion.

An activity is the "A Day with a Barangay" where government agencies involved in health, environment and sanitation are encouraged to group together and to go to specific barangays to offer their respective services.

"A Day with a Barangay" aims to bring government services to the people's doorsteps. Local government units are urged to be active partners in the endeavor as they will help identify the beneficiary barangays. CSC regional offices will take the lead in the activity.

Agencies are also urged to undertake fund-raising activities and donate the proceeds to institutions such as the Philippine National Red Cross or the social welfare department.

President Gloria Macapagal-Arroyo has called on the banking community to provide more loans to the housing sector and to small and medium enterprises (SMEs) in a bid to reinvigorate the domestic market.

In a press briefing this afternoon in Malacanang, Finance Secretary Jose Isidro Camacho said that the President met Wednesday night with officials of the Bankers Association of the Philippines (BAP) where she asked them to further expand their lending program for the SMEs.

This morning the President also met with officials of government financial institutions (GFIs) where she also asked them to step up their lending program for SMEs, stressing that this is one way of expanding the domestic market.

Camacho said that what the government is trying to do is to focus its efforts "so that the different sectors of our economy, including the banking sector, can be in sync with what the national government is doing."

He said that because of the potential weakness in the global economy, the administration is focusing on the SMEs and the housing sector.

"Activities in these two sectors could help promote domestic economy, create domestic demand but this will require domestic financing," Camacho said.

Camacho said that during the Wednesday meeting in Malacanang, the bankers expressed their willingness to increase their loan portfolio for the SMEs but they could not identify who the qualified SME businessmen and borrowers are.

So this is where the Department of Trade and Industry (DTI) would come in, and since they have regional and provincial networks, they will be the ones to introduce the SMEs to the bankers and the GFIs, Camacho said.

Camacho said that there is a need for government agencies to be proactive to be able to help the SMEs in seeking loans from the GFIs and the private banks.

He even suggested the holding of "loan fairs" and the operation of a website where prospective borrowers can surf for GFIs and private banks willing to lend money to them for their operations.

President Gloria Macapagal-Arroyo today reassured the United States of the Philippines’ continued support in its fight against global terrorism as well as in its efforts to go after illegally acquired funds by terror groups.

The President’s assurance was given to John Taylor, US Treasury Undersecretary for International Affairs, who called on her in Malacanang this morning. During their meeting, the President and Taylor discussed topics of mutual concern for the two countries.

Taylor, who is in the country for a two-day visit, was accompanied to Malacanang by Finance Secretary Jose Isidro Camacho.

In a media briefing later, Camacho said the President, in a candid conversation with Taylor, "emphasized our support for the US in the fight against global terrorism."

Camacho said the President also told Taylor about the efforts undertaken by the government to strengthen its anti-money laundering law and keep this "within international standards."

The President told Taylor that administration officials are now working with leaders of Congress on amendments to the anti-money laundering law.

Another topic discussed by the President and Taylor was the US announcement of a Millenium Challenge account for qualified developing nations.

The account was first brought out during the recent visit of US Secretary of State Colin Powell, who also called on the President in Malacaņang.

The account is a "$5-billion fund the US government would like to provide in the next four or five years to countries they believe could meet the criteria," Camacho explained.

The fund would be used for government programs and projects "in the area of poverty alleviation, specifically in health education and in the fight against the dreaded AIDS (Acquired Immuno-Deficiency Syndrome) in regions like Africa," Camacho said.

Camacho also disclosed that he and Taylor would sign an agreement that would formalize the Philippines’ eligibility to avail itself of the tropical forest program of the US.

"This will allow us to take advantage of funds being made available by the US government to help us in our environmental conservation projects, particularly in reforestation," he added.

The governments of the Philippines and the United States today formally signed an agreement on the Tropical Forest Conservation Fund (TFCF) that would provide financial assistance to help the country’s campaign in the environmental concerns, especially in reforestation projects.

The agreement was signed by Finance Secretary Jose Isidro Camacho and John B. Taylor, US Treasury Undersecretary for International Affairs, during a simple ceremony held at the Department of Finance this afternoon.

In his press briefing this afternoon in Malacaņang, Camacho said that Taylor briefed the President about the TFCF agreement during his courtesy call in Malacaņang this morning.

"Under the program, the Philippines would take advantage of funds being made available by the US government to help us in our environmental conservation projects, particularly in reforestation," Camacho said.

Camacho said that the agreement is the first concrete step and fruit of the President’s working visit to the United States in November last year and also part of the existing bilateral relations between the two counties.

The US would provide an initial fund of $8.2 million for the program that will be implemented by the Department of Environment and Natural Resources (DENR).

Under the TFCF, the government will establish, in consultation with non-government organizations (NGOs) involved in forest conservation, a Tropical Forest Conservation Board to administer the fund.

The Board shall consist of nine members, two each from the government and the US, and five from NGOs. Representatives of the NGOs should constitute a majority of the board.

Activities eligible for financing under the fund are:

1. Establishment, restoration, protection of parks, protected areas, and reserves;
2. Development and implementation of scientifically sound systems of natural resource management, including land and ecosystem management practices;
3. Training programs to increase scientific, technical and managerial capacities of individuals and organizations involved in forest conservation efforts;
4. Restoration, protection, or sustainable use of diverse animal and plant species;
5. Research and identification of medicinal uses of tropical forest plant life to treat human diseases, illnesses and health- related concerns; and
6. Development and support of the livelihood projects for individuals living in or near a tropical forest in a manner consistent with protecting such tropical forest.

Entities eligible to receive grants from the fund are:

President Gloria Macapagal-Arroyo today expressed her gratitude to international junior golf champion Javie Marie Agoho, for bringing honors to the country by winning in two prestigious golf tournaments in the United States.

"We’re proud of you. Thank you for bringing honor to your country," the President told Agoho during the latter’s courtesy call in Malacanang.

Among those who accompanied the young Agoho during the call on the President were Philippine Sports Commission (PSC) Chairman Eric Buhain, her parents, Jun and Vicky Agoho, and her personal trainer Romulo Negrido.

The 16-year old golfer has won the girls division (13-15 years old) of the International Junior Golf Championship held last July 10-13 in Temecula, California, and the Optimist International Junior Golf Competition (14-15 years old) in July 19-21, also in California.

The three-day Optimist International Junior Golf Championship (OIJGC) is one of the largest and most prestigious events for junior golfers, with ages 10 to 18.

Each year over 5,000 young people from the United States and Canada compete in qualifying tournaments. There are over 650 players from 15 countries, 45 states, and 6 Canadian provinces who participate in the championship event. Players compete in the 10-11, 12-13, 14-15, 16-18 age divisions.

During their conversation, the President said she is looking forward to playing a round of golf with Agoho at the Villamor Air Base golf course where the latter does her regular practice every Sunday.

President Gloria Macapagal-Arroyo presented cash awards and plaques of recognition to the best Filipino movies for the month of July and August and to 10 winning scripts for the Metro Manila Film Festival Philippines 2002 (MMFFP ‘02).

In ceremonies held at the Ceremonial Hall of Malacanang attended by leaders of the country’s movie industry, the President also called on the movie producers to make films that would not only entertain but also portray the best in Philippine culture.

Earlier, the President announced a P50 million subsidy for the movie industry so that it could produce quality films.

The President handed out P500,000 and a plaque each to the movie "Pakisabi Mo Na Lang na Mahal ko Siya" and "Jologs" which were adjudged winners of the Pilipino Great Movie Arts Awards for the month of July and August respectively.

The President also awarded P100,000 and plaque of recognition each for the scriptwriters of ten winning scripts submitted by the movie companies as entries to the MMFFP ‘02.

Leaders of the movie industry, headed by lawyer Esperidion Laxa, executive chairman of the MMFFP ’02, thanked the President for giving incentives to locally-produced films.

In an interview later, Fernando Poe, Jr., who was among those present in the ceremony, also said that the President’s subsidy is a great help to the movie industry.

"I would like to thank the President for helping the movie industry," Poe said.

The script of "Alamat ng Agimat," a film produced and directed by Poe was among the 10 winning scripts submitted to MMFFP ’02. Poe will also star in the said movie.

The 10 scripts that won P100,000 each and a plague of recognition were:

1. Home Along the Riber, written by Ben Felo and produced by RVQ Films of Rodolfo Quizon;
2. Spirit Warrior II, written by Roy Iglesias and produced by the MAQ Productions headed by Sherida Monteverde;
3. Mano Po, written by Roy Iglesias and being filmed by Lily Monteverde of Regal Entertainment;
4. Dekada, written by Lualhati Bautista and produced by Malou Santos of Star Cinema;
5. Lapu-Lapu, scripted by Jerry Tirazona and produced by Florante Castillo of Calinauan Cine Works;
6. Agimat 2, written by Peque Gallaga and produced by Marlon Bautista of Imus Films;
7. Alamat ng Lawin, written by Manuel Buising and produced by Ronald Allan Poe of FPJ Films;
8. Hula Mo, Huli Ko, written by Senen Dimaguila and Humilde Roxas and filmed by Rudy Fernandez of Reflection Films;
9. Lastikman, written by Antonio Reyes and produced by Octoarts Films headed by Orlando Ilacad; and
10. Kulimlim, written by Roy Iglesias and produced by Teresita Cruz of Neo Films.

According to Metro Manila Development Authority (MMDA) Chairman Bayani Fernando, who is the over-all chairman of the MMFFP 2002, the cash awards given to the 10 best scripts and for the best quality films for the months of July and August came from the P50 million presidential subsidy.