IFC to loan P750-M to CARD MRI for women MSMEs – Manila Bulletin

International Finance Corp. (IFC) plans to issue loans to the country’s largest microfinance institutions to help them stay afloat and save jobs as the Philippines grapples with the economic impacts of the COVID-19 pandemic.

In a statement, the IFC said that the World Bank Group member plans to issue up to P750 million in debt financing to CARD Bank Inc. and CARD SME Bank Inc., which should primarily benefit women entrepreneurs in the country.

“The investment aims to benefit more than 60,000 companies, 44,000 of which are micro, small and medium-sized enterprises (MSMEs) owned or led by women,” IFC said.

“Support from the Women Entrepreneurs Financing Initiative (We-Fi) in the form of performance-based incentives will help banks meet predefined targets for lending to women-owned or led small and medium-sized enterprises (SMEs) additional.

The two microfinance institutions are part of the Center for Agriculture and Rural Development – Group of Mutual Reinforcement Institutions (CARD MRI). They have more than 120 branches and serve four million customers.

“Filipino businesswomen are struggling to recover from the severe effects of the pandemic, and we support them every step of the way,” said Jaime Aristotle B. Alip, CARD MRI, Founder and Chairman Emeritus.

“We believe that a Philippines without poverty can be achieved by empowering these women to reach their full potential. Through this partnership with IFC, we can reach more women-led and women-led MSMEs and help them continue on their path to a better future, ”she added.

The financing will provide critical working capital for MSMEs, which have been particularly disadvantaged by the pandemic due to a lack of funding reserves and the ability to restart operations during strict quarantine periods.

MSMEs represent 99.5 percent of businesses in the Philippines. More than half of those businesses are run by women, and most of the businesses operate wholesale and retail, which have been particularly affected by COVID-19.

The financing package is part of the IFC’s $ 8 billion global COVID-19 fast-track financing mechanism, which aims to help companies stay afloat during the current public health crisis.

The loans are made through IFC’s Working Capital Solutions Program, a $ 2 billion facility that provides financing to emerging market banks to extend credit and help companies shore up their working capital.