CV development plan includes easy credit access for SMEs

CEBU, Philippines - Central Visayas works on increasing credit access of farmers, fisherfolks and the small and medium entrepreneurs (SMEs) in the next six years.

Based on the Regional Development Plan (RDP) for 2011 to 2012, part of the region's initiatives to improve utilization of credit facilities by farmers, fisherfolks and SMEs shall be the conduct of extensive information campaigns on credit or financing programs being implemented by the government and private financing institutions.

The region shall also work to improve the capability of banks to respond to the special needs of small borrowers so that they will be encouraged to develop credit facilities with less stringent requirements and tailor-fitted to SMEs, farmers and fisherfolks.

Initiatives will also be undertaken to improve the creditworthiness of SMEs.

A group will assist SMEs in improving their accounting records so they can comply with requirements of financial institutions.

Similarly, capabilities of microfinance institutions, including farmer associations and cooperatives, in financial management shall be strengthened so they can be eligible to avail of loans from formal financing institutions and effectively serve as conduit borrowers.

The six-year development plan for the region also made mention that the government shall also provide them (SMEs, farmers, fisherfolks) with marketing assistance so that they will have better capacity to repay their loans. Capacity to repay loans is the most important criterion for creditworthiness.

In agriculture, establishment of "bagsakan centers" in various parts of the region shall be pursued to facilitate credit marketing of agricultural and fishery products.

The operation of "bagsakan centers" have not only provided consumers access to more affordable food products but has also effectively raised the income of agriculture and fishery producers.

Local Government Units (LGUs) shall also establish product display centers that would showcase the products of the locality. The display centers can be made part of the tourism promotion of the LGUs. (FREEMAN)