IFC willing to finance SMEs in RP

The International Finance Corp. (IFC), the financing arm of the World Bank, is willing to provide financing for small and medium enterprises, Trade and Industry Secretary Manuel A. Roxas II, said yesterday.

Roxas met last week with IFC officials, led by IFC country manager Vipul Bhagat, to discuss a possible financing scheme for SMEs with counterpart funding from the government through the National Development Corp. (NDC) and the private sector.

Roxas admitted that this early in the talk with IFC, there are still no details about the amount to be provided. "What was discussed was the possible mixture of funding initially at 40-40-20," he added.

Roxas has repeatedly said that SMEs comprise about 99 percent of business in the country with government, therefore, prioritizing financing for that sector.

Roxas had earlier urged government financial institutions (GFIs) to expedite loans applications under the SME Unified Lending Opportunities for National Growth (Sulong) program.

According to Roxas, faster processing of Sulong loan applications would strengthen the National SME Development Agenda and spur economic growth in the provinces and encourage more entrepreneurs to expand their businesses.

Roxas believes that boosting the viability of SMEs through loans and other services would eventually lead to more jobs and a stronger economy.

The National SME Development Agenda is a priority program of the government with the Department of Trade and Industry as lead agency.

The DTI is mandated to provide SMEs seamless access to comprehensive services including financing, marketing, training and product development.

Sulong is a major component of the National SME Development Agenda which gives SMEs greater access to capital through the standardization of application procedures, requirements, fees and interest rates among GFIs.