The Government of the Republic of the Philippines has requested technical assistance (TA)
from the Asian Development Bank (ADB) to increase access and efficiency of microfinance services
for the poor in frontier1 areas that have little or no access to formal or semiformal financial services.
Microfinance is recognized as the central strategy for poverty reduction in the Philippines under
Republic Act 8425 Social Reform and Poverty Alleviation Act passed in 1997, and is an important
part of President Arroyo’s 10-point agenda. The Philippine Country Strategy and Program Update
(CSPU) 2004–2006 includes microfinance as a key area of assistance to support the Government’s
poverty reduction program. Ensuring permanent access to institutional financial services for poor
and low-income households at competitive prices is also a goal of ADB’s Microfinance Development
Strategy.2
