MICROCAPITAL STORY: Philippines Government and Microfinance Institutions (MFIs) Initiate Loans Totaling $3.3b Since July 2004
In 2004 the Philippines Government and private microfinance institutions (MFIs) agreed to increase microfinance lending across the country. At the 11 th anniversary of the Filipino National Anti Poverty Commission (NAPC ), data was released indicating that loans totaling PHP 161 billion (USD 3.3 billion ) have been made to 5.8 million microfinance clients from July 2004 to April 2009. The NAPC, a government body, estimated that 2.7 million jobs have also been created through this investment. In 2007 PHP 25.9 billion (USD 537 million) in loans were made and this grew to PHP 64.8 billion (USD 1.3 billion) in 2008. From January to April 2009 PHP 9.7 billion (USD 201.1 million) microfinance loans have been created. It was not clear
how this data was collected or the methodology behind it.
72 Filipino MFIs report their latest financial and other data to the MIX Market, the microfinance information clearinghouse. Cumulatively these MFIs have 2.1 million active borrowers with a Gross Loan Portfolio of USD 411.5 million as indicated by their most recent data on the MIX. For some general information about how the global credit crisis is affecting the MFI sector, including the Philippines, refer to this MicroCapital Paper Wrap-Up. A recent MicroCapital story also describes how MFIs in the Philippines are seeking to attract foreign investment by obtaining a rating from international ratings firms.
By Sally Levy, Research Assistant
National Anti Poverty Commission: HomeSource: www.microcapital.org
Category: Payday loans