A study by the government think tank Philippine Institute for Development Studies (PIDS) warns against any attempt to adopt populist credit programs because it may reverse the recent successes of market-based microfinance in the country.
PIDS Vice President Gilberto Llanto noted in his study, A Microfinance Promise: To Provide the Poor Access to Finance Services that making microfinance accessible to as many poor people as possible without considering the possible implication on the sustainability of microfinance institutions (MFIs) and borrower discipline should be avoided.
Dr. Llanto specifically identified the reported plan to revoke Executive Order 138, which mandated the adoption of market-based financial credit policies, and the passing of Section 9 of RA 9178, otherwise known as the Barangay Micro Business Enterprises Act of 2002 as the pitfalls that policymakers face in their desire to support microfinance.
The plan to revoke EO 138 will restore subsidized credit programs to benefit target beneficiaries. In effect, this will reverse the market-oriented policy thrusts of the government on microfinance that have achieved significant results in a relatively short period of time, Llanto explained.

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