IFC Lends P700 Million to Two Philippines Financial Institutions for MSME Financing
Tuesday, December 15, 2015
The International Finance Corporation (IFC) will provide a seven-year loan to CARD Bank, Inc. and CARD SME Bank, Inc. to benefit micro, small, and medium enterprises (MSMEs), microfinance borrowers, and women in rural areas.
In a statement, the World Bank Group member institution said yesterday that the loan for CARD and CARD SME would amount to up to P700 million.
“Almost three-quarters of the poor in the Philippines live in rural areas. Poverty among farmers is three times higher than in other sectors. Without access to formal financial institutions, a majority of the population borrows from informal sources,” IFC said.
“Increasing MSME access to financing will enable the sector to create jobs, while affordable microfinance will better meet the capital needs of the poor,” it added.
CARD Bank will receive upwards of P540 million of the total loan amount.
With IFC’s investment, CARD Bank can grow its microfinance client base and establish new branches, especially in rural areas.