INSTEAD of simply getting rid of "5-6" lenders, the Duterte administration is strongly being urged to provide the public with an alternative lending program that will help them when they are in dire need for cash.
In a statement, Partido Manggagawa (PM) said the Duterte administration is just creating new problems if it only runs after motorcycle-riding “Bumbays” without offering the poor with an alternative.
“We agree to the plan that their usurious loan practice is put to an end. But an alternative to 5/6 system must be formed. We believe an alternative program can easily replace the 5/6 system,” said PM.
Sans an alternative program, the labor group said this will only result to a worse loan practice that the present one.
“Without this needed replacement, the government will only push the system further into the black market, where more notorious financial sharks operate,” said PM.
On Tuesday, Justice Secretary Vitaliano Aguirre II bared that President Rodrigo Duterte had ordered a crackdown against "5-6" lenders, more known as “Bumbays”.
Under the “5-6” lending scheme, borrowers incur 20 percent interest rate per month in exchange of being able to instantly loan money without having to go through rigorous processes in banks.
According to PM, one alternative is for the government to establish a national bank or a national lending program, which can readily cater to the needs of the poor.
The PM also said an elaborate national employment program must also be pushed in order to bring down the number of workers in the vulnerable sector of the economy. (HDT/VoxPop Philippines)