Executive Brief for the Department of Finance

briefer for DOF

1. Executive Brief for Finance Secretary Benjamin E. Diokno 10 August 2022 1:30 – 2:30 p.m. 2 nd floor Podium, Department of Finance Manila

2. CHARTER STATEMENTS/MANDATE VISION By 2025, PHILGUARANTEE shall be a strong and trusted State-Owned Enterprise , the reliable and responsive partner in championing inclusive growth and catalyzing regional development of economic sectors, and a key regional player for guarantee finance in the ASEAN Community. 2 . MISSION As the Principal Agency for State Guarantee Finance of the Philippines , we provide accessible, reliable and efficient guarantee systems to enable credit for stakeholders in trade and investments, infrastructure, housing, agriculture, MSMEs and other priority sectors of the government. CORE VALUES A daptability to Innovation R eliability I ntegrity S ervice Commitment E mpowerment MANDATE AREAS MSMEs/PRIORITY SECTORS IPP Areas BOI-registered industries HOUSING SECTOR Low-Cost Socialized AGRICULTURE SECTOR Small Farmers Fisherfolks INDUSTRIES THE PROMOTION OF WHICH IS ENCOURAGED BY GOVERNMENT POLICY

3. PHILGUARANTEE is classified as a government financial institution, supervised by the BSP. In 2017, the Philippine Government revisited its policy and direction on credit guarantees in the context of risk management, capitalization and absorptive capacity. The result of which is the transformation journey following the issuance of Executive Order No. 58, s. 2018 with the consolidation and merger of Philippine Guarantee Programs and Agencies. The Principal Agency for State Credit Guarantee of the Philippines 3

4. Ongoing Key Initiatives and Programs (2022) 4 Portfolio Management Over P230-Billion in credit guarantee portfolio Over 73,000 in additional beneficiaries of housing, MSME and agriculture sectors P118-Million in collections and recoveries from acquired assets Process Enhancements/ Governance & Risk ICT Modernization/ Digitization Improved Turnaround Time in support and claims processes and completion of legacy accounts ISO re-certification 85% collection efficiency target Operational Risk Management Framework Business Continuity Management/Risk Controls Board-Management Coordination Inter-Agency Partnerships and Alliances Legal Client Servicing Program Records Management People Development/ Brand Positioning Positive Returns P2.5 Billion in total income Over P25 Billion in investments (including managed funds and ECPCG) More than P700 Million in comprehensive income Returns or gains from sale of big ticket acquired assets Disposal of Unserviceable Properties 50% cost-to-income industry ratio Organizational realignments in business, support and strategic functions Competency Framework and Gap Analysis Learning and Dev’t Opportunities/Training/ Succession Talent Upskilling/Talent Acquisition (new hires) New Corporate Office completion/relocation CPCS implementation appeals 90% clientele rating Enhanced website CNA implementation Business Fora in key cities of the country