“Sobra na yan. Pautangin ng 5-6 (interest rate) tapos bentahan pa ng mahal na mga appliance. Patay talaga ang pobre dyan.”
This is the remark of President Duterte during the Cabinet meeting when the issue of of the usurious money lending scheme of foreigners, especially Punjabis from India, was discussed towards the end of the Cabinet meeting on January 9, 2017.
In the said meeting, Duterte ordered the money lenders deported especially those foreigners involved in the money lending trade charging usurious rates.
Pinol continued: “At the same time, he announced the allocation of an initial P1-B for a micro-lending program to provide loans for small business capitals to be handled by the Dept. of Trade and Industry.”
“There are about 50,000 motorcycle-riding Punjabis involved in a money-lending scheme where borrowers pay back a P5,000 peso loan with a P1,000 interest in one month collected on a daily basis,” Pinol wrote.
In the said Cabinet meeting, President Duterte announced the allocation of an initial P1-B for a micro-lending program to provide loans for small business capitals to be handled by the Dept. of Trade and Industry.
“The proliferation of the “5-6″ lending is mainly due to the inability of government lending institutions to provide an easy access facility for small businessmen,” DTI Secretary Ramon Lopez told President Duterte and fellow Cabinet members.
“DTI has already designed a scheme on how to extend soft loans to small businessmen with an interest of 20% every year, payable in one year,” Sec. Lopez added.
Pinol said that during the meeting, President Duterte instructed Foreign Affairs Secretary Perfecto Yasay, Jr. to inform the Indian Ambassador of his decision to stop the usurious lending scheme in the Philippines.
“They are violating Philippine laws by indulging in a money-making business without the necessary permits,” President Duterte said.
During the election campaign, Duterte vowed to end the money-lending activities of foreigners in the country due to the inability of government lending institutions to provide an easy access facility for small businessmen.
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