Gov’t has P80B for microfinancing
By Carla Gomez
Visayas Bureau
First Posted 23:17:00 05/09/2008
Filed Under: Banking, Government Aid, Entrepreneurship
BACOLOD CITY, Philippines--Presidential Management Staff chief Cerge Remonde said the government has P80 billion available for microfinance programs this year and is in need of partners for its dispersal.
Remonde was in Bacolod Thursday with presidential spokesperson Anthony Golez and Noel Poso, vice president of the People’s Credit and Finance Corp., to talk about microfinance opportunities and entrepreneurship with the Citizens Movement for Good Government, a local group.
Last year the President designated Remonde as the oversight official for micro, small and medium enterprise (MSME) development.
Remonde said the administration was committed to provide three million entrepreneurs with sufficient credit to contribute to the generation of six to 10 million jobs by 2010.
From 2004 to 2008, a total of P213.77 billion was released to 3.76 million active microfinance clients and SME accounts generating about 2.18 million new jobs, he said.
Last year he said P54.52 billion was released to 1.15 million microfinance clients and SME accounts, with 677,281 new jobs generated, Remonde said.
About 400,000 new jobs -- mainly in the handicraft and food business -- are estimated to have been created in Western Visayas through microfinance programs, 100,000 of which were in Negros Occidental, Poso said.
Microfinance was made available through local partners, including the Negros Women for Tomorrow Foundation, Poso added.
The repayment rate of microfinance loans has been impressive -- up to 98 percent -- Remonde said, pointing out that up to 92 percent of the borrowers were women.
Microfinance loans are made available through local organizations and rural banks, Remonde said.
To make the program more attractive, Remonde said the President has ordered interest rates lowered from 12 to 10 percent per annum, he said.
"We are generating jobs and creating products that are globally competitive," he said. "In time we hope to export more of these products so that we can keep more of our workers here at home."
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