It approved recently the standardization of the chart of accounts of cooperatives that should help improve loan disbursement to the 54,000 cooperatives spread out nationwide.
As of last record, P4 billion has reportedly been released through cooperatives, which in turn cater to the small and micro enterprises.
"The harmonizing of the accounts of the cooperatives will make it understandable to banks and help improve their access to credit," Finance Undersecretary Juanita Amatong said.
Amatong explained that the Cooperative Development Authority (CDA) was supposedly the government entity that regulates and develops the country’s cooperatives. However, national government reports indicate that it had been grossly unable to fulfill its mandated task other than register cooperatives.
"With this we hope to improve their access to credit thus improving the administration’s thrust towards poverty alleviation. They (cooperatives) have no accounting standards making it difficult for creditors to assess their financial performances," Amatong added.