Legarda bats for ‘bibingka economics’

MANILA – Reelectionist Senator Loren Legarda has urged full implementation of laws that will spur economic growth from the grassroots through the development of small and medium enterprises.

During the Inquirer Senate Forum held at the UP Film Center last week, Legarda said a job-creation revolution in the provinces, especially in poor municipalities, has long been possible under existing laws that significantly enlarge the micro-enterprises base nationwide.

Legarda, principal author of the Magna Carta for Micro, Small and Medium Enterprises (MSME), Barangay Kabuhayan Act, and the Agri-Agra Reform Credit Act, said during that forum that what is just needed is the full implementation of these laws.

She said these laws would ensure that there is “bibingka economics” or economic growth from the grassroots.

Legarda said the MSME law helps facilitate the access of micro, small and medium enterprises to sources of funds requiring lending institutions to set aside for them at least 8 percent of their loan portfolio.

On the other hand, the Barangay Kabuhayan Law seeks to empower would-be micro entrepreneurs through skills trainings offered by the Technical Education and Skills Development Authority (TESDA) in 4th, 5th and 6th class municipalities.

Legarda said the Agri-Agra Reform Credit Act requires banks to allocate 25 percent of their loanable funds to the agriculture sector to finance the acquisition of work animals, farm equipment or machinery, seeds, fertilizers, livestock, feeds or other similar items for farm production.