No enough institutions to handle microfinance loans in Mindanao
DAVAO CITY (MindaNews/13 Oct) — There is enough money to lend to the poor in Mindanao but there are not enough institutions capable to extend and sustain it, a microfinance bank executive said. The focus should be to provide support mechanisms — such as training and capability building — to existing microfinance institutions, said Ignacito Alvizo, director of the Mindanao Microfinance Council (MMC).
He said support should be given to cooperatives, associations, and non-government agencies that could also be conduits to microfinancing.
Alvizo, who chairs the microfinance institution Enterprise Bank, said it is not enough that micro financial institutions (MFIs) have the good intention of lending and the business interest. “They have to acquire the technology to sustain the business,” he stressed.
He said there are only about 50 of more than a hundred MFIs in Mindanao who have the technology to run microfinancing. He added that around P800 million is available for microfinance in Mindanao through government financial institutions that serve as “wholesalers” for microfinance loans. Read full story here.