people’s credit and finance corporation
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People’s Credit and Finance Corporation. PEOPLE’S CREDIT AND FINANCE CORPORATION (The Philippine Microfinance Institution). Brief History of Microfinance in the Philippines. 1960’s : Rural banks / Cooperatives extend smallloans to farmers and fisher folks. - PowerPoint PPT PresentationTRANSCRIPT
People’s Credit and Finance Corporation
PEOPLE’S CREDIT AND FINANCE CORPORATION
(The Philippine Microfinance Institution)
• 1960’s : Rural banks / Cooperatives extend small loans to farmers and fisher
folks.
Brief History of Microfinance in the Philippines
• 1970’s/80’s : Rural banks / development banks / government financial institutions
provide highly subsidized credit to the rural poor.
• Late 80’s : Microfinance as a new approach to credit delivery. : NGO’s as potent partners of
government.
• 1996 : Formation of microfinance coalition - NGOs and government agencies, like PCFC
• 1997/2006 : National Strategy Framework for Microfinance
: Microfinance integrated into Philippine Banking System
MICROFINANCE:
is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers and insurance products to the poor and low – income households, for their micro – enterprises and small business, to enable them to raise income levels and improve their living standards.The maximum loan amount for microfinance loans is P150,000 (approximately US$3,000)
National Strategy Framework of Government for Microfinance
Greater role of private microfinance institutions (MFIs) in the provision of financial services Enabling policy environment to facilitate increased participation of the private sector.
Market oriented financial and credit policies
Non – participation of government line agencies in credit program implementation
People’s Credit and Finance CorporationLead government entity specifically tasked to
mobilize resources for microfinance services for the exclusive use of the poor
Investment Loans : Principally for livelihood activities
Micro – housing Micro – energy Micro – agri
Institutional Loans :Capability building activities to strengthen partner MFIs
PCFC Performance (As of September 2009)
Total loans releases - P 12.6 B
Investment - P 11.6 B
Institutional - P 1.0 B
Outstanding Balance -P 3.2 B Total Resources -P 3.5 B
Client Outreach - 2.8 M
No. of MFI Partners - 164
Collection Rate - 96%
EFFECTS OF TYPHOON ONDOY AND PEPENG
AREAS AFFECTE
D
NO. OF MFIS
AFFECTED
NO. OF INCLUDING AFFECTED
INCLUDING STAFF
ASSISTANCE EXTENDED BY
MFIs
ASSISTANCE
EXTENDED BY PCFC
NCR and
Southern Luzon
10
6______
16
135,078
26,125_______161,203
-Relief operations- Restructured loans and provided new loans- Provided calamity loans- Release of insurance claims c/o MBA program- Moratorium on amortization payments to selected end clients subject to BOD approval
Initially provided relief goods for end clients
SCHEMES TO ASSIST MFIs AFFECTED BY CALAMITIES
Option 1: Moratorium on amortization payments
• Deferment of up to six (6) months on the amortization payments (principal and interest)
Option 3: Provision for Institutional Loans• Re – alignment of the usage of the previously approved
Institutional facility for repairs and / or acquisition of office equipment damaged by typhoon.• Re – alignment of a portion of the Investment facility to Institutional facility.
Option 2: Provision for Special Loans• Special loans for refinancing with a term of up to four (4) years
THANK YOUand
HAVE A GOOD DAY!!!