IFC and Other Key Stakeholders Advise Government in Philippines on New Law to Support MSMEs
The IFC in partnership with the Department of Finance, the Land Registration Authority, Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, the Department of Trade and Industry, various MSMEs and banking associations to construct a new bill to support MSMEs in the Philippines.
The Personal Property Security Act (Republic Act No 11057) will allow MSMEs to utilize movable assets to obtain credit. This will benefit MSME farmers in particular, allowing them increased access to finance and participation in the global market.
Key features in the new law include a registry of movable assets and transparent rules in case of foreclosure, according to the article.
Greater financial inclusion is on the horizon for MSMEs in the Philippines with the new law. According to the article, countries that have implemented similar laws have seen satisfactory results. “Similar measures in Vietnam have resulted in 1.5 million registrations since 2012, facilitating $69.3 billion in financing for about 800,000 SMEs and 50,000 micro businesses.”