SEC urges Congress to fund credit bureau bid in budget

10/22/2009

The Securities and Exchange Commission (SEC) urged legislators to approve, as part of the 2010 budget, the P75 million government counterpart fund to the credit bureau.

SEC Chairman Fe Barin said inclusion of the said fund in next year’s budget would enable the government to implement Republic Act 9510 that established the Central Credit Information Corp. (CCIC).

“It (CCIC) can be implemented on or before the start of next year,” she told reporters Wednesday.

The law, signed by President Arroyo in November 2008, allows for the gathering of credit information from financial institutions in a bid to check data of borrowers aimed at ensuring a vibrant credit market in the country.

Under RA 9510, 60 percent of the corporation will be government-owned, to be headed by the SEC, but the share will be divested off at least 20 percent after five years, while the remaining share will be for the private investors that include industry associations of banks, quasi-banks and other credit-related associations.

The government’s equity share is worth P75 million while that of the private sector amounts to P50 million.

Initially, the agency eyed the Bangko Sentral ng Pilipinas to lead the credit bureau but the law named the SEC, instead.

Proponents of the law hopes that implementation of the law will significantly boost micro, small and medium enterprises in the country.

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