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BY PRINCE GOLEZ, Manila Reporter
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Sunday, January 15, 2017
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MANILA – Sen. Paolo Benigno “Bam” Aquino IV called for the strengthening of the country’s microfinance institutions (MFI) the poor’s financing needs.
Aquino’s Microfinance NGOs Act aims to protect Filipinos against loan sharks who charged abusive interest rates.
“There are better alternatives to 5-6, whether these are government programs, or led by the private sector,” said the senator who authored and sponsored Republic Act (RA) 10693 in the 16th Congress.
“Mas magandang masuportahan ang mga grupo at programang ito na regulated ng gobyerno na makapagbibigay rin ng pautang na hindi kasintaas ng mga 5-6 ang interes.”
Unlike the 5-6 lending system, non-profit MFIs provide alternative low-interest, no-collateral financing to the poor and would-be entrepreneurs who need loan to start their own business.
To be fully implemented, the Bureau of Internal Revenue has been asked to finalize tax regulations for non-governmental organizations in microfinance.
RA 10693 provides microfinance NGOs incentives, such as technical assistance and exemption from taxes, so they can help more people escape poverty through financing, as well as financial literacy, livelihood, and entrepreneurship training.
“MFI-NGOs aid our poor countrymen in times of inflation and price increases. They also provide financing and training for livelihood and small businesses so families can overcome poverty,” Aquino said.
In 2013, MFI-NGO members of the Microfinance Council of the Philippines had a gross loan portfolio of P15.26 billion, serving nearly 3 million micro-entrepreneurs./PN
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