Microfinance solutions (MICROSOL) and microfinance technical assistance grand (MICROTAG)

• Main Author: Apuli, Maria Carmen S.
• Format: text
• Published: Animo Repository 2008
• Subjects: Microfinance; Financial services industry; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/12516
• Institution: De La Salle University

The Second Agrarian Reform Communities Development Project (ADCDP2), is a six-component, area, specific, multi-sector development program which aims to reduce rural poverty and enhance the quality of life primarily of agrarian reform beneficiaries is implemented by the Department of Agrarian Reform (DAR) with financing from the Government of the Philippines, Local Government Units (LGU's) and the World Bank. The ARCDP2 builds on the achievements of the first ARCDP. but focuses on a different set of eighty (80) agrarian reform communities in ten (10) provinces in the Philippines.The ARCDP2 aims to significantly raise household incomes and the quality of life of the project clients by improving their productive assets, rural infrastructure, and their access to key support services.The DAR entered into Memorandum of Agreements with CFC and concerned Microfinance Institutions on 07 December 2004 in the targeted ARCDP2 areas for the implementation of the "ARC Microfinance Solutions (MICROSOL)" Project under the Support to Rural Finance (SRF) sub-component which aims to facilitate the provision of financial services to ARC households through government financial institutions doing wholesale functions and through the MFIs such as cooperatives, NGOs, and rural banks acting as retailers.Under the ARCDP2 the DAR provided technical assistance (i.e. grant fund for the procurement of computers, software and other assets related to MIS; acquisition of motorcycles and other equipment that will enhance the efficiency of MFIs and salary subsidy of microfinance staff in targeted ARCs).PCFC and DAR had partnered with eighteen (18) PCFC partner MFIs, nine (9) MFIs from Luzon, four (4) from Vizayas, and five (5) from Mindanao) of which eleven (11) are non-government organizations, six (6) are rural banks and one (1) cooperative bank.Prior to the commencement of the project and to be able to reach the Project's global target, DAR, PCFC, and partner MFIs had agreed on the following Key Performance Indicators (KPIs): (i) number of outreach, (ii) loans outstanding, (iii) savings mobilized, and (iv) Capital Build-Up (CBU).As of December 2007, the Project was able to accomplish more than the targeted savings mobilized and CBU generated having a percentage of 143.39% and 180.49%, respectively while number of outreached and loans outstanding garnered 84.41% and 57.05%, respectively.Pursuant to the implementation of the MICROSOL, PCFC and DAR had executed "Microfinance Technical Assistance Grant (MICROTAG)", to address the long-term capacity-building requirements of MICROSOL partner MFIs and PCFC staff. The assistance supported the implementation of relevant training and the project monitoring activities.The number of training subsidized by the Project and the quarterly assessments facilitated the exchange of experiences and learning in the implementation of microfinance in identified agrarian reform communities.The skilled acquired by the MFIs through training, regular monitoring of project activities and continuos sharing of experiences and learning are some of the factors that contributed to the achievement of the Project's target. Likewise, it is important to assign an organic staff aside from the consultants hired for the project to facilitate and monitors the transactions between the Project and its partners.