President Gloria Macapagal-Arroyo of the Philippines recently signed Republic Act (RA) 9501, an amendment to RA 6977, the “Magna Carta for Small and Medium Enterprises” (SMEs) into law. The amendment was necessitated by the fact that the original “Magna Carta” signed in 1991, did not distinguish micro-enterprises and that its provision (section 13) for all private and public lending institutions to help finance SMEs expired in 2007.
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President Arroyo urges Philippines Social Security System to Move into Microfinance Investments after Overcoming “Seemingly Insurmountable” Challenges
President Gloria Macapagal Arroyo of the Philippines announced in a bullish speech given at the 2nd National Convention of the Account Officers of the Social Security System (SSS) that the SSS would move into “investment areas like microfinance.” Since the SSS funds have increased from 196.3bn Philippines Pesos (USD 4.1bn) in 2005 to P225bn (USD 4.8bn) in 2006, overcoming what President Arroyo has called ‘insurmountable challenges’, it aims to widen its market and get into further investment areas.
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.
MICROCAPITAL BRIEF: Social Security System (SSS) of the Philippines Extends Services through Partnership with the Center of Agricultural and Rural Development (CARD) Bank
The Center for Agricultural and Rural Development (CARD) Bank, a non-governmental organization that provides lending and voluntary savings for poor and landless women in the Philippines, reportedly has partnered with the Social Security System (SSS) of the Philippines, a government-run social insurance program that provides retirement and health benefits, in an effort to extend the program’s outreach to workers in the Philippines’ informal sector.
MICROCAPITAL BRIEF: Philippines Looks to Curtail Direct Microfinance Lending by Government Agencies
In an effort to counter political patronage, the administration of Philippine President Benigno Aquino III has indicated its intention to alter current microfinance policies, which confer power to government agencies to lend directly to poor people.
NEWS WIRE: Philippines: Bangko Sentral Encouraging More Microfinance
Source: Philippine Information Agency
MICROCAPITAL STORY: Indonesia’s MBK Ventura, Egypt’s Al Tadamun, and Grameen Bank’s Nurjahan Begum Recognized at Grameen Foundation 2008 Awards
The achievements of the Grameen Bank‘s Nurjahan Begum, Indonesia’s Mitra Bisnis Keluarga (MBK) Ventura, and Egypt’s Al Tadamun were recognized on November 12, 2008 at the Grameen Foundation’s 2008 Awards in Washington D.C. The awards were held in conjunction with its annual Knowledge Sharing Roundtable discussion, which this year discussed the implications of the global financial crisis on microfinance. Nurjahan Begum received the Susan M. Davis Lifetime Achievement Award for her work in microfinance for over 30 years, including her efforts to organize women in Bangladesh’s poorest villages and leading the fight for the rights of disadvantaged women. MBK Ventura of Indonesia received the Excellence in Microfinance Award for its leadership its efforts to ensure that Indonesia’s poorest citizens receive financial services, and Al Tadamun of Egypt was awarded the Pioneer in Microfinance Award in recognition of its program to provide financial services to Cairo’s poorest women.
MICROCAPITAL STORY: Filipino Microfinance Expanded as Department of Trade and Industry Opens a Small and Medium Enterprise Development (SMED) Center in General Santos City
The Phillippines’ Department of Trade and Industry (DTI) recently opened a Small and Medium Enterprise Development Center in General Santos City. In accordance with its official responsibility to lead the development and regulation of all businesses, especially small and medium enterprises (p19), DTI not only opened the center, but also trained the initial four leaders to facilitate the center. The center will also be supported, both locally and nationally, by the Filipino network of Small and Medium Enterprise Development (SMED) Councils. The national SMED Council coordinates small and medium enterprise (SME) activities to help facilitate policy and program development. Regional and local SMED centers are created to be more sector specific (p 120).
MICROCAPITAL STORY: Philippine Government: $1.9b Available for Microfinance
The chief of staff of Philippine President Gloria Macapagal-Arroyo has said that the nation’s government has PHP 80 billion (USD 1.9 billion) available for microfinance programs and is looking for partners to help disperse the funds.
MICROCAPITAL STORY: Philippine Government Advocates Lowering Interest Rates for Microenterprises
Philippine government has directed microfinance lending agencies to look into the possibility of lowering interest rates to micro and small businesses. The government believes this will make microfinance more attractive and increase activity within the sector. The directive came from Cerge Remonde, the oversight official for the government’s micro, small, and medium enterprise (MSME) program, but is not an obligation nor did it specify if or when it would require MFIs to do so.
Previous Ban on State Lending to Financial Institutions in the Philippines Repealed
Recent changes have resulted in more government participation in the finance and lending sector in the Philippines. Former President Estrada’s Executive Order 138 which limited state lending to financial institutions in the Philippines has been repealed. Current President Macapagal-Arroyo’s issue of Executive Order 558 (EO 558) allows government nonfinancial agencies and government-owned and controlled corporations to lend.