MICROCAPITAL BRIEF: Ahon sa Hirap Incorporated, Philippine Social Security System to Expand Coverage to 25,000 Women Entrepreneurs

The Social Security System (SSS), the Philippines’ state-owned pension fund for private sector employees, reportedly has announced a new agreement with Philippines-based microfinance institution (MFI) Ahon Sa Hirap Incorporated (ASHI) to expand SSS coverage to 25,000 female ASHI borrowers. SSS president and CEO Emilio de Quiros Jr reportedly noted that “under the agreement with ASHI, SSS will make it easier for self-employed women from poor families to apply for SSS membership, loans and benefits.” He also noted that “as covered SSS members, women workers from ASHI can save for their retirement and avail themselves of SSS benefits during times of sickness, maternity, disability, old age and death.”

SSS reportedly expects the agreement to extend coverage to approximately 90 percent of all 27,300 ASHI members.

As of 2011, the Microfinance Information Exchange (MIX) reports ASHI’s gross loan portfolio to be USD 6 million, deposits to be USD 1.8 million and assets to be USD 10.6 million.

By Makai McClintock, Research Associate

About the Philippine Social Security System (SSS)
The Philippine Social Security System (SSS) is a government-run social insurance program for Philippine workers. Established in 1957, SSS provides retirement and health benefits to enrolled workers in the Philippines and allows members to take out “salary loans” equal to the employee’s weekly salary, or “calamity loans,” which are loans available to members in times of natural disasters. SSS has 38 million members and 162 branch offices as of 2012.

About Ahon Sa Hirap Incorporated
Ahon Sa Hirap Incorporated (ASHI) is a microfinance institution in the Philippines, established in 1989, which bases its loan programs on the Grameen Bank model of Bangladesh. The goals of Ahon Sa Hirap include: becoming a sustainable microfinance institution, facilitating the empowerment and enhancement of women and their families, delivering quality and professional microfinance service, integrating and sharing expertise among microfinance institutions (MFIs) and anti-poverty institutions. In 2011, Ahon Sa Hirap reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 10.6 million, a gross loan portfolio of USD 6 million and deposits of USD 1.8 million.

Sources and Additional Resources

Microfinance Information Exchange Profile, “Ahon Sa Hirap Inc.,” http://www.mixmarket.org/mfi/ashi

PhilStar Business Article, “SSS Widens Coverage in Self-Employed, Informal Sectors,” http://www.philstar.com/business/2013/05/19/943639/sss-widens-coverage-self-employed-informal-sectors

MicroCapital, February 9, 2013, “MICROCAPITAL BRIEF: Microfinance Credit Bureau, MiDas Launched by Microfinance Institutions in Philippines,” https://www.microcapital.org/microcapital-brief-microfinance-credit-bureau-midas-launched-by-microfinance-institutions-in-philippines/

MicroCapital, September 3, 2009, “MICROCAPITAL BRIEF: Philippines-Based CARD Raises $10.4 Million in a 5-Year Privately Placed Bond Issue Supported by Grameen Growth Guarantee Program and ‘A(-)’ Rating by Planet Rating to Expand Its Microfinance Business,” https://www.microcapital.org/microcapitalorg-story-philippines-based-mfi-card-raises-104-million-in-a-5-year-privately-placed-bond-issue-supported-by-grameen-growth-guarantee-program-and-a-rating-by-planet-rating-to-ex/

MicroCapital, April 30, 2007, “MICROCAPITAL BRIEF: President Arroyo Urges Philippines Social Security System to Move Into Microfinance Investment after Overcoming ‘Seemingly Insurmountable’ Challenges,” https://www.microcapital.org/president-arroyo-urges-philippines-social-security-system-to-move-into-microfinance-investments-after-overcoming-seemingly-insurmountable-challenges/

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