Central bank urges more lending to poor
Philippine Daily Inquirer
First Posted 03:23:00 05/14/2008
Filed Under: Banking, Central Banks, Loan Markets
MANILA, Philippines--As sharply rising consumer prices threaten to push more people into poverty, the central bank, Bangko Sentral ng Pilipinas (BSP), has called on banks to lend more to the poor.
At the launch Tuesday of Citigroup’s search for outstanding microfinance entrepreneurs 2008, BSP Governor Amando Tetangco Jr. said 229 banks were now into microfinance—provision of small, non-collateralized loans to the poor to help them start a business—with a total client base of 780,000 and P6 billion worth of loans.
“Today, as our country’s poor grapple with the challenges of rising prices of basic commodities, the call for coordinated efforts to fight poverty has never been stronger,” Tetangco said.
“Let us therefore resolve to work more closely together to build stronger financial institutions that provide responsive service to microenterprises, sow the seeds of entrepreneurship, nurture local enterprises and build prosperity in our country through microfinance development,” he added.
Tetangco noted that the country’s micro-borrowers were also becoming net savers, with total deposits reaching P2 billion as of end-2007.
“Not only have they been liberated from the cycle of poverty, they are attaining financial security for themselves and their families,” he said.
The Citi Microentrepreneur of the Year Awards 2008 is the sixth run of an annual awards program launched by Citigroup in 28 countries to advocate awareness and support for the microfinance industry.
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