MANILA, Philippines – Senator Bam Aquino is pushing for easier credit access for the country’s micro, small and medium enterprises (MSMEs).
Aquino, chairman of the Committee on Trade Commerce and Entrepreneurship, said financing requirements are marginalizing the MSME sector, which accounts for the country’s 99.6 percent of all enterprises and employs about 62 percent of the workforce.
"The existing requirements for credit do not consider the nature and stature of these micro and small businesses,” he said.
Aquino has filed Senate Bill No. 2218, which seeks to expand the central bank’s Credit Surety Fund (CSF) program to accommodate more micro and small enterprises.
"The CSF is seen as an effective program to address the financing gap that is affecting many entrepreneurs in the country," he said.
The Bangko Sentral ng Pilipinas (BSP) currently has 29 credit surety funds established nationwide, with three recently launched in Cagayan de Oro, Aklan, and Tarlac.
Aquino’s bill also aims to build the capability of MSMEs, cooperatives and non-government organizations in credit evaluation, loan and risk management, and good governance; and enhance MSMEs' credit worthiness.
"This will generate more employment and alleviate poverty through increased investments and economic activities," the lawmaker said.