President Gloria Macapagal-Arroyo said today she will sign into law a bill that would effectively lower transaction flows and the cost of doing business in the country, and bolster the fight against corruption and red tape.
Authored principally by Sen. Edgardo Angara and Quezon City Rep. Vincent Crisologo, the Credit Information System (CIS) measure was approved by both Houses of Congress last month.
The CIS also seeks to improve the quality of human resources, and build a seamless infrastructure network which are all crucial for the Philippines to remain competitive and attractive to investments.
The legislation also seeks to lower the cost and risk of financing, reduce the cost of gathering credit information and the amount to be passed on to borrowers, and thereby reduce interest rates on loans.
Speaking before 150 local and foreign business leaders at the Business Roundtable with the Government of the Philippines this morning at the Dusit Thani Hotel in Makati City, the President said the new law will develop efficient access to financing and reduce paper requirements in doing credit-related business in the country.
“In a few days time, I will be signing a bill into law on a Credit Information System that will reduce the paper requirements for accessing financing,†she said.
The new law would establish a central credit bureau spearheaded by the Securities and Exchange Commission (SEC) as part of capital market reforms.
The operations and services of the CIS is expected to greatly improve the overall availability of credit, especially to small borrowers; lower the cost of credit to responsible debtors, reduce dependence on collateral to secure credit facilities and enable financial institutions to lower their overall credit risk, thus contributing to a healthier and more stable financial system. - Philippine News Agency
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Topic: Doing Business in the Philippines at Lower Cost (Read 487 times)