BSP, IFC tie up for movable asset finance

Category : Business | Sub Category : Finance Posted on 2025-04-16 09:01:41

PNA

MANILA – Credit access for micro, small and medium enterprises (MSMEs) has been boosted by the partnership between the Bangko Sentral ng Pilipinas (BSP) and the International Finance Corporation (IFC), to develop the movable asset finance (MAF).

Citing a 2002 IFC study, the BSP on Wednesday said MAF in the Philippines remains under 5 percent, a far cry from the opportunities that MSMEs can tap to boost their businesses and despite the existence of the Personal Property Security Act.

“The BSP looks forward to working with IFC to build a dynamic MAF ecosystem. With this, MSMEs and agri-enterprises can use their available assets to access financing for their working capital and other needs,” BSP Governor Eli Remolona Jr. said.

For her part, BSP Deputy Governor Bernadette Romulo-Puyat said the team-up is aligned with the inclusive growth and financial resilience bid of the National Strategy for Financial Inclusion 2022-2028.

MAF allows borrowers to secure loans using movable assets like inventories, receivables, and equipment as collateral.

On March 17, BSP and IFC officials signed a memorandum of understanding (MOU) that would be in effect until 2027, aimed at focusing on regulatory reform, sector capacity building, and supporting services development.