CREDIT FOR RURAL BUSINESSES KEY
TO ECONOMIC RECOVERY - ANGARA

Senator Edgardo J. Angara called upon the leading financial firms in the Philippines to increase the availability of credit to small- and medium-scale entrepreneurs in order to spur the country's economic growth.

"I urge you to help enhance access to credit to make sure that Filipinos have the means to fuel their prosperity, and provide an instrument to help in our country's economic recovery," said Angara in his keynote speech yesterday in the 30th National Credit Congress held by the Credit Management Association of the Philippines.

Angara, vice-chair of the Senate Committee on Finance, explained that while the Philippines wasn't hit as badly as other ASEAN countries in the worldwide economic crisis, local financial institutions still needed to restrict access to credit.

"We saw that in our country, the most visible effect of the global financial crisis was the tightening of credit, it became harder to obtain loans for both business and households. This held enormous consequences not only for sustaining the growth of enterprises and welfare of families, but also for helping them survive a profound economic shock," said Angara.

According to Angara, the people who need it most--our entrepreneurs, farmers and households in rural areas--have the most difficulty in acquiring credit, due to their lack of a good credit standing.

"When we push for inclusive growth, we also have to advocate for inclusive finance to ensure that our rural folks also cash in on the benefits of progress. Microfinance, micro-agri loans, micro-insurance--these are the emerging needs in our countryside which we must seek to provide if we want to achieve a healthy economy," he asserted.