IRR of the Microfinance NGOs Act signed by DOF, DTI, DSWD, and SEC

On August 16, 2016, the Implementing Rules and Regulations (IRR) of the Microfinance NGOs Act – Republic Act No. 10693, also known as “An Act Strengthening Nongovernment Organizations Engaged in Microfinance Operations for the Poor” was signed at the Ayuntamiento Building, Intramuros, Manila.

IRR of the Microfinance NGOs Act signed by DOF, DTI, DSWD, and SEC

(Seated from left) SEC Chairperson Teresita J. Herbosa, DoF Secretary Carlos G. Dominguez, Senator Paolo Benigno “Bam” Aquino IV, Former Congressman Pablo R. Nava III, DTI Secretary Ramon M. Lopez and DSWD Undersecretary Mae Fe Templa. (Standing from left) Mr. Josef Leron of CARD MRI, Mr. Sonny Guiang of KAZAMA Grameen, Mr. Eduardo Mendoza of TSPI, Mr. Eduardo Jimenez of KMBI, Ms. Maria Anna Ignacio of Kasagana-ka, Fr. Jose Victor Lobrigo of SEDP-Simbag sa Pag-asenso, Inc., Mr. Rolando B. Victoria of ASKI, Mr. Angelo Solarte of TSKI, and Ms. Mila Bunker, Member of the MCPI Advisory Council.

Present during the signing were the permanent members of the Microfinance NGOs Regulatory Council (MNRC) led by Chairperson Teresita J. Herbosa of the Securities and Exchange Commission (SEC), Secretary Carlos G. Dominguez of the Department of Finance (DOF), Secretary Ramon M. Lopez of the Department of Trade and Industry (DTI), and Undersecretary Mae Fe Templa representing Secretary Judy Taguiwalo of the Department of Social Welfare and Development (DSWD). Also present were Senator Paolo Benigno “Bam” Aquino IV, Former Congressman Pablo R. Nava III, and key leaders from the microfinance sector.

The Microfinance NGOs Act aims to strengthen non-government microfinance institutions (MFIs) in their pursuit of community development and improvement in the socio-economic welfare of the poor and other basic and marginalized sectors. Microfinance NGOs shall be required to obtain accreditation from the MNRC in order to fully enjoy the benefits accorded to them under the law. The IRR contains the accreditation criteria including financial and social performance, and governance standards for microfinance NGOs. An accredited MF NGO shall only be subjected, in lieu of all national taxes, to a two percent tax based on its gross receipts from microfinance operations.

Gross receipts refers to lending activities and insurance commissions which are bundled and forming an integral part of the lending activities of Microfinance NGOs.