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Philippines aims to boost credit for small and medium shipbuilders

Philippines aims to boost credit for small and medium shipbuilders
The Philippines' Maritime Industry Authority (Marina) is in discussions with the Development Bank of the Philippines (DBP) to provide incentives to small and medium shipbuilders to make them more competitive, local reports said.

Marina deputy administrator for planning Nicasio Conti said the agency is currently working with DBP to open a credit facility for small and medium scale shipbuilders making ships for the domestic market.

“We are proposing incentives so they (small and medium-sized shipbuilders) can become competitive,” Conti said.

Conti noted that DBP is already extending loans to local ship owners, and similar credit facilities of about PHP50m ($1.1m) to PHP100m could be offered to domestic shipbuilders too. “Many companies already benefit in terms of owners’ side. What we want is for the shipbuilding side to benefit too,” he said.

The boosted capital will also help small and medium players to modernize, he said. Aside from DBP, Conti said the Marina would also want to start talks for similar credit facilities with other government financial institutions in the future.