Filipinos welcome new AGFUND microfinance bank in Manila

Filipinos in the private and public sectors have welcomed the initiative of the Arab Gulf Program for Development (AGFUND) to set up a microfinance bank in the country to help poor people get access to finance.
AGFUND President Prince Talal bin Abdul Aziz launched the Ibdaa Microfinance Bank initiative in Manila on Wednesday by signing an agreement with Miguel B. Varela, president of the Philippine Chamber of Commerce and Industry (PCCI).
Other guests included Jejomar Binay, Philippine vice president; Abdullah Al-Hassan, Saudi ambassador to Manila; and Ezzedin Tago, Philippine ambassador to Riyadh. Representatives from local government, civil society, the private sector, international organizations, media and other stakeholders were also present.
“We are amazed at the vitality of the Filipino people and their love for productive work,” said Prince Talal in a speech. “We therefore believe that the Ibdaa Microfinance Bank will be a vital tributary to the opening of new business opportunities, integration of the poor in financial processes and promoting the concept of savings.”
Prince Talal said that AGFUND wants to help people in the region live better lives. He said there are plans to establish more branches in Southeast Asia.
In his presentation, Nasser Al-Qahtani, AGFUND executive director, said that many parts of Asia, especially the Philippines, have significant poverty, which has resulted in its people migrating to other countries for work.
“In the aftermath of the typhoon (Yolanda) that hit the Philippines resulting in major losses in human beings and property, there is an urgent need to make tangible improvements in the opportunities and livelihood of the country’s people through innovative and holistic intervention,” he said.
“We chose the Philippines because you have the legal environment for microfinance and social businesses, and good businesspeople who believe in this,” Al-Qahtani said, according to reports.
AGFUND submitted documents required for the bank’s establishment to the Philippine central bank last month.
“We will open it as soon as we get the license. We hope to open it before the end of the year,” Al-Qahtani said.
He said the bank’s initial capital would be $5 million and can increase depending on its stability, Al-Qahtani said.
Varela said the initiative would help many people nationwide particularly Filipinos seeking finance for micro, small and medium enterprises.
Tago told Arab News that the initiative was important to help lift people out of poverty. “We are very happy that AGFUND, though our global partners, has decided to open this microfinance bank after its success in various countries in the Middle East,” Tago said.
According to reports, the Ibdaa Microfinance Bank has branches in Bahrain, Jordan, Lebanon, Syria, Sierra Leone and Yemen. The planned branch in Manila will be the first Ibdaa Microfinance Bank in Southeast Asia.