Please refer to BPRD Circular No. 15 of 2008 dated December 19, 2008 on the subject.

In partial modification of the guidelines for Microfinance Credit Guarantee Facility issued vide BPRD Circular No. 15 dated December 19, 2008, it has been decided to further incentivize commercial banks to provide whole-sale funds to eligible Microfinance Banks/ Institutions under the MCGF. The following amendments are made in aforesaid circular:


a) Banks/DFIs now have the option to provide funding to Microfinance Banks/ Institutions with the existing 40% Partial (pari-passu) Guarantee to cover the principal amount in default, or 25% First Loss Guarantee to cover up to 25% of the first loss on the principal amount, under the MCGF.

b) The MCGF guidelines have been simplified to make the provisions more flexible

Please acknowledge receipt.

Encl: Amended Guidelines