Philippines named best in microfinance

Philippines named best in microfinance
Posted: 3:31 AM | Nov. 18, 2005
Michelle V. Remo
Inquirer News Service

THE Philippines has been named the best at implementing microfinance programs to reduce poverty.

The Consultative Group to Assist the Poor (CGAP), a World-Bank assisted body advocating the development of microfinance, gave the award to the Philippines during the celebration of the International Year of Microcredit held at the United Nations' headquarters in New York City last Nov. 8.

The Philippines was chosen from among 100 countries implementing microfinance programs.

The CGAP is a consortium of 28 multilateral agencies, bilateral institutions and private sector organizations that help countries in assisting their poor populations.

"Microfinance has been identified as one of the best ways to address poverty, and now the Philippines is at the forefront of this goal," said Finance Undersecretary Gil Beltran, who represented the Philippines during the celebration.

Beltran said the recognition was a result of the establishment of the National Strategy for Microfinance, which served as a blueprint for easing credit access for the poor.

Under the National Strategy for Microfinance, the national government will strive to improve the delivery of funds for credit to the poor.

This was done by assigning financial institutions to distribute funds for microcredit, therefore veering away from the old practice of allowing any interested government agency to perform the task.

The old practice had been prone to corruption, Beltran said.

The National Strategy for Microfinance likewise required the development of a standard chart of accounts and financial performance indicators that will guide financial institutions in doing microfinance programs.

A manual for operations of the Cooperative Development Authority has also been developed to improve the CDA's capability to strengthen cooperatives.

The country's microfinance development program also had to do with the government's initiative to create a national credit bureau, which will house information on the credit standing of borrowers.

It was also seen encouraging credit providers to expand their services.

The credit bureau is a work in progress by various agencies led by the central bank and the Department of Finance.

Beltran said several private financial institutions were giving microfinance services to the poor in provinces all over the country.

He said the government would continue the task of expanding the coverage of microcredit facilities for the poor, especially after receiving the CGAP award.

"The award is a testament to the government's efforts to help the poor and make them contribute to the country's economic performance," Beltran said. With INQ7.net

this story was taken from www.inq7money.net
URL: http://money.inq7.net/announcements/view_announcements.php?yyyy=2005&mon=11&dd=18&file=1