By Joann Villanueva
Credit access for micro, small and medium enterprises (MSMEs) has been boosted by the partnership between the Bangko Sentral ng Pilipinas (BSP) and the International Finance Corporation (IFC), to develop the movable asset finance (MAF).
MAF allows borrowers to secure loans using movable assets like inventories, receivables, and equipment as collateral. Citing a 2002 IFC study, the BSP said MAF in the Philippines remains under 5%, a far cry from the opportunities MSMEs can tap to boost their business operations.
Earlier, BSP and IFC officials signed an MOU (Memorandum of Understanding) that focuses on regulatory reforms, sector capacity building, and supporting services development.
“The BSP looks forward to working with IFC to build a dynamic MAF ecosystem. With this, MSMEs and agri-enterprises can use their available assets to access financing for their working capital and other needs,” BSP Governor Eli Remolona Jr. said.
BSP Deputy Governor Bernadette Romulo-Puyat said the team-up is aligned with the inclusive growth and financial resilience bid of the National Strategy for Financial Inclusion 2022-2028. (PNA)