The Small and Medium Enterprise Development for Sustainable Employment Program (SMEDSEP) has started to help rural banks to improve their lending activities to small and medium entrepreneurs.
Smedsep, a developmental program of the German government, through German Technical Cooperation (GTZ) in partnership with the Philippines, recently signed a memorandum of agreement with First Agro-Industrial Rural Bank, Inc., (FAIRBank) to further intensify its lending activities to the small and medium-sized enterprises in the Cebu province.
The partnership is a manifestation of commitment of both agencies to further contribute in finding solutions to the lack of SME access to credit.
SMEDSEP announced that it will make available SME finance consultants to provide technical assistance on strengthening the bank’s credit technology and to provide capacity building to the credit staff.
FAIRBank on its part is committed to further increase lending to SMEs in a more efficient manner.
Also this month, SMEDSEP signed a similar agreement with Bank Victorias in Negros Occidental.
These partnerships are expected to become a model for other rural banks in the Visayas and encourage them to also intensify their lending to SMEs.
The credit technology that SMEDSEP has introduced to FAIRBank and Bank Victorias shall not only provide better credit access to SMEs but also gives more businesses for the banks.
FAIRBank has five branches that are located in Bogo, Daan Bantayan, Sta Fe in Bantayan Island, Danao City and Balamban. The bank has also service units in Mandaue City, Toledo City and Carcar.
SMEDSEP, a development cooperation project between the Republic of the Philippines and the Federal Republic of Germany, aims to improve the Business and Investment Climate for Small and Medium Enterprises (SMEs) in the Philippines, especially in the Visayas.
It contributes to the efforts of the Philippine Government in improving the framework conditions for private sector development in the country.
SMEDSEP is implemented in partnership of the Department of Trade and Industry (DTI) at national, regional and provincial levels and the German Technical Cooperation (GTZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
GTZ is an international cooperation enterprise for sustainable development with worldwide operations owned by the German Government. For 30 years, it has been providing viable, forward looking solutions for political, economic, ecological and social development in a globalized world.
GTZ supports complex reform and change processes, often working under difficult conditions. GTZ‘s major approach to promote change is developing the capacities of partner organizations and people. The joint projects and programs are designed as results and impact oriented contributing towards socioeconomic progress in the partner countries. — Ehda M. Dagooc