Value Chain Financing for Agriculture and Rural Enterprises Conference Land Bank of the Philippines 12 April 2011 Department of Finance-National Credit Council

GOVERNMENT Policy and Regulatory Agencies Enabling policy and regulatory environment Measures supportive of financial inclusion Guidelines for mainstreaming informal sector Other National Agencies and Instrumentalities Delivery of Basic support services Collaboration with private sector financial providers Local Government Units (LGUs) Conducive business environment Networks and linkages with financial providers Public awareness and consumer protection

PRIVATE SECTOR Financial Providers Financial inclusion policies in corporate mandates Simple, affordable and accessible innovative financial products Intermediaries Safe, efficient and effective delivery channels Back Office Support Systems Service Providers Capacity and Institution Building Business Development Services Financial Literacy

Risk Protection for Micro and Small Business Entities National Strategy and Regulatory Framework for Microinsurance including issuance of IC circulars to encourage private sector participation Enhancement of delivery channels Development of innovative microinsurance products beyond credit life and commodity- based agri-insurance coverage

Microinsurance Provider (Commercial Insurance, MBAs, Coop Insurance, Pre-Need, HMOs ) Clients MFIs (Individual/Group Insurance) HOW WE CAN DO IT Intermediaries (Agents and Brokers)

RISK MITIGATION FOR PROVIDERS Conducive Environment and Legal Framework for acceptance of alternative loan collaterals Development of financial products with alternative collaterals such as: Agriculture produce Warehouse receipts Invoices Purchase Orders Inventories

AGRICULTURE SECTOR FINANCE GOES BEYOND PRODUCTION LOANS. IT NECESSARILY INVOLVES THE WHOLE SUPPLY AND VALUE CHAIN PROCESS. MORE IMPORTANTLY, IT INVOLVES ALL OF US