DEEPENING REFORMS TO REINVIGORATE MOVABLE ASSET, RISK-BASED AND SUPPLY CHAIN FINANCING FOR MSMES IN THE POST-COVID ERA
06-07 April 2021
The APEC Financial Infrastructure Development Network (FIDN), a key initiative under the Cebu Action Plan, was formally launched on November 12, 2015. The FIDN is envisioned to promote the development of effective credit information systems, as well as secured transactions and insolvency frameworks that would facilitate the use of movable assets as collaterals in the credit markets. This collaborative effort among APEC member economies, APEC Business Advisory Council (ABAC), International Finance Corporation/World Bank Group (IFC), SME Finance Forum, and the Organization for Economic Co-operation and Development (OECD) brings together experts from the public and private sectors, including international organizations and industry associations, to support APEC economies in undertaking financial infrastructure reforms.
This FIDN Conference will devote some of its discussions to keeping the momentum of reform in the region. Through continuous dialogue and collaboration in FIDN, the Personal Property Security Act (Republic Act No. 11057 – Secured Transactions Law) was lodged in July 2017 and passed and signed into law on August 17, 2018. This has been a product of collaboration among public and private sector stakeholders that resulted in one of the fastest legislations in the Philippines. However, bigger challenges lie ahead in making the law work in accordance with its intention of mobilizing finance for MSMEs and farmers. These challenges are now magnified as MSMEs struggle to explore alternative ways to access finance under the pandemic. This FIDN Conference hopes to bring together the relevant partners and beneficiaries in dialogue on a way forward and equip them with critical lessons to explore alternative routes of financing for MSMEs and to operationalize credit infrastructure reform.