Manila: Credit access for micro, small, and medium enterprises (MSMEs) has received a significant boost through a partnership between the Bangko Sentral ng Pilipinas (BSP) and the International Finance Corporation (IFC). This collaboration aims to develop movable asset finance (MAF), which allows borrowers to secure loans using movable assets such as inventories, receivables, and equipment as collateral.

According to Philippines News Agency, BSP highlighted that MAF in the Philippines remains under 5 percent, referencing a 2002 IFC study. This figure is low compared to the potential opportunities available for MSMEs to enhance their business operations, despite the presence of the Personal Property Security Act. On March 17, officials from BSP and IFC signed a memorandum of understanding (MOU) effective until 2027, which focuses on regulatory reform, sector capacity building, and the development of supporting services.

BSP Governor Eli Remolona Jr. expressed optimism about the partnership, stating, "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." Additionally, BSP Deputy Governor Bernadette Romulo-Puyat emphasized that this collaboration aligns with the National Strategy for Financial Inclusion 2022-2028, which aims to foster inclusive growth and financial resilience.