IFC has approved a medium-term loan of up to USD 30 million to the Rizal Commercial Banking Corporation (RCBC) to increase its financing of small and medium enterprises, including women-led businesses. The loan will help spur job creation and support smaller businesses affected by Typhoon Yolanda. RCBC has a large pool of smaller businesses that need trade and working capital financing. These enterprises, which comprise nearly 10% of all registered businesses in the country, account for 30% of total employment and about 30% of the Philippines’ gross domestic product. IFC is also advising Rizal Microbank, a thrift-bank subsidiary of RCBC, to improve access to finance for micro, small, and medium enterprises in Mindanao and Southern Luzon.
“We commend IFC’s endeavors to support SMEs in the country. We consider this market segment instrumental to RCBC’s lending growth and will continue to be a key focus area for the bank,” said RCBC President and Chief Executive Officer Lorenzo Tan. “With 80% of micro, small, and medium enterprises in the Philippines not having access to credit or the collateral to borrow from a bank, IFC’s loan is designed to help provide financing to these businesses, promote job creation, and diversify the country’s economic base,” said IFC Resident Representative, Jesse Ang.