DOF assures funding for micro, small enterprises

THE government’s move to borrow more from the domestic debt market next year would not crowd out micro and small enterprises, as a new law now provides for a mechanism that would allow these businesses to tap convenient, flexible and affordable microfinance loans, the Department of Finance (DOF) said.

Owing to excess liquidity in the market, commercial banks would be more willing to take risks and lend to entities that provide microfinance services and operations because of higher yields than from the government, Finance Secretary Carlos Dominguez 3rd said in a statement on Tuesday.