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Loans To Smes Are Being Discussed In The Phillipines In the Philippines, discussion is taking place about proposed guidelines on streamlining processing for providing loans to SMEs. This follows President Arroyo comment that the finance sector should capitalize on low interest rates. President Arroyo also asked Bangko Sentral ng Pilipinas and private banks to work on a way to give entrepreneurs easier access to capital, by providing a simple procedure for granting loans. Finance Secretary of the Philippines, Margarito Teves, has said that SMEs should be given a way to access loans easier, with the difficulties with procedures. Secretary Teves also said an informal agreement between the Bangko Sentral ng Pilipinas and private banks that involved giving entrepreneurs easier access to capital, would address the entrepreneurs' needs. The Philippines Congress is now discussing proposals regarding a new credit information bureau. The creation of this bureau simplify procedures for giving entrepreneur's access to capital. This bureau will give lenders information on how well borrowers can repay debt. This will enable the lenders to determine the appropriate interest rates. It is believed that the creation of such a bureau will help the business climate in the Philippines. President Arroyo says that many entrepreneurs can not find access to capital, even though the interest rates are low and there is enough funds in the private banks. The Bankers Association of the Philippines (BAP) are willing to support the plan of a credit bureau in the Philippines. BAP executive, Arnulfo Veloso, says they are looking forward to drafting the guidelines and want to open up credit to people. The Philippines is now experiencing lower interest rates, which came about because of higher credit ratings. This should gives the Philippines more job opportunities and more foreign direct investments. President Arroyo says that the good credit rating should be used to fight poverty and create jobs |
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