Credit Information Corporation (CIC) of the Philippines Reiterates Plea for P90m Subsidy to Maintain its Operations

CIC REITERATES PLEA FOR P90M SUBSIDY AS HOUSE OPENS PLENARY DELIBERATION FOR 2021 BUDGET

Credit Information Corporation (CIC), the country’s public credit registry and repository of Filipinos’ credit information, underscored anew its plea for a P90 million subsidy for FY 2021 as the House of Representatives begins its deliberations in a plenary session.

In a letter dated 30 September, CIC’s OIC President and CEO Atty. Aileen L. Amor-Bautista appealed for assistance from Albay Rep. Joey Salceda, Chair of the House Committee on Ways and Means, in securing the said subsidy.

“Any lower amount will jeopardize our operational viability and the security of the CIC database,” Atty. Amor-Bautista emphasized.

The CIC recently presented its request for P90 million subsidy in a virtual hearing of the Finance Subcommittee I presided by Sen. Imee Marcos where it highlighted the significance of its database which contains the financial credit data of over 18.9 million Filipino borrowers with 80 million contracts across more than 500 financial institutions.

“We fervently hope that our request will get approved with Cong. Salceda as our sponsor. He is also one of the proponents of the economic stimulus bill which aims to protect and assist millions of Filipino workers including micro, small, and medium enterprises (MSMEs). We strongly believe that he will support the country’s credit registry as it also plays a significant role in mitigating the economic impacts of the COVID-19 pandemic,” the CIC PCEO shared.

Cybersecurity, contributions to economy

Atty. Amor-Bautista likewise reiterated that bulk of the requested subsidy which is approximately P35 million will be used to further strengthen the security regime of the Credit Information System (CIS).

“The CIC database contains highly sensitive personal information. It receives, processes, secures, and stores Filipinos’ credit transactions with all types of lenders—from banks and credit card companies to microfinance and government lending institutions,” she said, stressing the need to tighten the security of the system.

She added that this is especially crucial these days “when potential cyber-attacks threaten businesses and organizations with the implementation of remote work amid the pandemic.” The PCEO also explained how the CIC plays an integral role in the Philippine Development Plan, specifically on expanding economic opportunities and in improving the stakeholder’s access to finance: “The wealth of data that we manage and provide can lead to streamlining and simplifying loan processes for MSMEs, cooperatives, and overseas Filipinos.”

She further expounded on how the CIC can help reduce interest rates towards reviving domestic industries and ultimately, the Philippine economy, through the CIC Credit Report.

“The CIC is one with the national government in promoting and protecting the collective interest of the citizens amid this state of national emergency. As we implement various economic interventions, we believe that the government’s financial ecosystem should be anchored on a reliable and comprehensive, centralized credit registry,” Atty. Amor-Bautista stated.

Finally, she thanked Cong. Salceda in advance for helping the CIC fulfill its mandate and cascade the benefits of the credit registry to every Filipino.

“We are very hopeful that he will support and endorse the CIC’s originally requested subsidy for all the benefits derivable from a fully functional Credit Information System,” the PCEO ended.

The plenary deliberation for the CIC is scheduled on 5 October 2020.

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The Credit Information Corporation (CIC), a government-owned and controlled corporation, was created by Republic Act No. 9510, otherwise known as the Credit Information System Act (CISA). The primary mandate of CIC is to establish a comprehensive and centralized credit information system for the collection and dissemination of fair and accurate information relevant to, or arising from, credit and credit-related activities of all entities participating in the ecosystem.