Understanding the Crisis, Gearing up for Recovery

MCPI Annual Conference Tackled the Economic Crisis

"Overconsumption in the American economy brought about the present global economic crisis", said Dr. Cayetano Paderanga of IDEA, keynote speaker at the MCPI Annual Conference held at the Century Park Sheraton Manila last May 12-13, 2009 with the theme, Understanding the Crisis, Gearing up for Recovery. Dr. Paderanga, an Economics expert and Central Bank Monetary Board member for nine (9) years, depicted the economic progress of the US in the last two decades as bubble growth the explosion of which had world-wide repercussions.

MFI clients, Ms. Dolores Banaag (CARD) and Ms. Cloudy Rain Buendia (TSPI), reactors to Dr. Paderanga’s presentation, confirmed that the crisis has found its way to the Philippine microfinance sector. Their micro-businesses have experienced a fall in demand due to the high prices of goods and the lower consumption of their regular buyers.

Ms. Teresa Ganzon (Bangko Kabayan), Ms. Mean Ignacio (Kasagana-Ka Development Center) and Mr. Gadwin Handumon (Paglaum Cooperative), MFI presenters, said that there was a slight decrease in the number and sizes of microfinance loans for the period 2008-2009. However, it was also during the same period that these MFIs ventured to increase their outreach and to diversify their products.

Mr. Christopher Tan of Grameen Foundation (GF); Mr. Josaias Dela Cruz of Bank of the Philippine Islands (BPI); Mr. Edgar Generoso of People’s Credit and Finance Corporation (PCFC) and; Ms. Gondelina Amata of National Livelihood Development Corporation (NLDC) explained the possibility that funding may be delayed due to the crisis. On the other hand, they stressed that more credit windows and support facilities will be available to MFIs during these hard times.

The conference participants agreed that generally, there may be more opportunities than threats during the crisis. Challenges can be overcome given the players’ proper understanding of the economic situation and their prudent actions. Recovery may just be around the corner, chorused Dr. Paderanga and PinoyMe Foundation's Danilo Songco.

The Conference also took up continuing concerns in the Practitioners Learning Workshops (PLWs). These were Agriculture Microfinance; Leadership Succession; Over-indebtedness of Clients; Progress in Micro Insurance; Delinquency Management; Organizing Micro-MBA and; The Changing World of Governing MFIs. Now on their 6^th year, the PLWs are workshop sessions organized to facilitate exchanges on topics of interest among MFIs.