ADFIAP Consulting (AC) and the University of the Philippines’ Institute for Small-Scale Industries (UP-ISSI) held a series of meetings at the institute’s headquarters in Quezon City to discuss the implementation of their memorandum of understanding through the development of back-to-back programs for entrepreneurs and bank officers to facilitate access to finance (A2F) by the micro, small and medium enterprises (MSMEs).
The proposed initiative is in support of the MSME Development Council’s “Micro, Small and Medium Enterprise Development Plan for 2011-2016” which focuses on developing a vibrant MSME sector by addressing the critical constraints to the growth and development of this key economic sector. Concerns regarding A2F from the side of the MSME borrowers relate to their inability to comply with bank requirements and credit standards, while on the part of the banks, their concern on the bankability and viability of MSMEs as well as the risks involved in lending to the sector.
The ADFIAP-UP-ISSI back-to-back program is directed towards: (1) improving the financial literacy of MSMEs to be able to address their funding requirements towards sustainable business operation and economic and social upliftment and (2) enhancing the knowledge and skills of banks in evaluating MSME projects under a risk-mitigated environment.
AC was represented in the meeting by Ms. Cora Conde, Group Head, Atty. Alberto Reyno, Managing Partner, Ms. Cecile Ibarra, Head of Advocacy and Training, and Ms. Arlene Orencia, Head of Projects and Programs while UP-ISSI was represented by Ms. Arlene Liberal, Training Director/Consultant.