The National Development Co. (NDC) may have broad powers to rescue distressed companies under a proposed stimulus bill that will help these firms recover from the impact of the new coronavirus disease 2019 (COVID-19) pandemic.
But sources said government is leaning towards a new state banks-led investment firm to aid COVID-hit companies.
Under Senate Bill 1564 or the Bayanihan to Recover As One or Bayanihan Act 2 that extends Bayanihan to Heal as One Act, the Land Bank of the Philippines and the Development Bank of the Philippines will spearhead the bailout of big companies through the creation of the National Emergency Investment Corp.
Ceferino Rodolfo, undersecretary of the Department of Trade and Industry (DTI) said if tapped for the bailout plan under the Philippine Economic Stimulus Act, NDC can float bonds and raise capital that it can invest on companies with strategic impact to the economy based on employment generation and overall viability.
NDC is chaired by DTI Secretary Ramon Lopez.
Rodolfo said NDC can play a big role in stockpiling of medicines and critical medical products like raw materials for personal protective equipment through the Philippine Pharma Procurement Inc.
“NDC can provide the risk equity to attract other investors and leverage government procurement,” he said.
“NDC has a big contribution to the economy, remitting funds to the national government).
It has broad powers, it can float bonds. It can just increase capital,” Rodolfo said.
NDC has a capitalization of P11 billion, of which P8 billion are in assets. Aside from real estate, NDC has profitable investments in renewable energy.
Rodolfo said with government injecting equity into ailing firms, NDC has to recover its investment.