CITI is seeking a legislation that will allow foreign banks to lend to
small and medium-scale enterprises (SMEs) whose business values are
higher than the current limit of P100 million.
Sanjiv Vohra, Citi country president, said the bank is also looking at
improving its SME loan portfolio.
"Currently, we are lending to those who are in the P100 million and
below business size clients," Vohra said.
He said he is pushing for a law that will allow foreign banks to go
beyond P100 million, to at least reach P200 million.
According to Vohra, the current MSME law allows a level playing field
between local banks and foreign banks to participate in the said sector.
"Under (the present) MSME law, there is a separate provision which
allows foreign creditors to take real estate as collateral and allows
you to undertake foreclosure under extrajudicial means, (which) makes it
easier for foreign banks," Vohra said.
At the moment, Citi says the bank is still catching up with other banks
when it comes to the SME portfolio.
Meanwhile, Eugene McQuade, CEO of Citi North America, said the
Philippines will play a very important role in the bank's business
expansion.
"We will be transferring more of our operations here in the Philippines
soon," McQuade said.
According to McQuade, "Citi has now recovered from the issues brought on
by the world economy."
"(We are) very focused on continuing to grow our businesses all over the
world," he said.
He said that for the next 12 years or so, opportunities of growth will
be greater in the region.
McQuade also pointed out that the healthy macro-economics of the country
opened more opportunities to Citi.
Vohra added that Citi is strong enough to withstand great economic
pressure outside the country.
Because of this, Citi expressed its intentions to transfer more of its
outsourced services soon.
Currently, Citi employs about 6,000 people, 3,000 of whom are in the
regional offices and the other 3,000 in shared services.
"We have great confidence in our ability to thrive no matter what
happens in the global economy," Vohra said.
"We've seen positive growth in 2008 and 2009 and we're quite confident
about the Philippines' growth over the next two years."
Vohra projects a GDP growth of 4.2 percent for the Philippines in 2012
on the back of good feedback from exports, government spending, and
investments.
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CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
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