Despite rise in short-term interest rates, long-term interest rates, instead of rising, have moderated, leading to a further flattening of the global yield curve and narrowing down of credit spreads. EMEs have taken advantage of favourable financial conditions. During the first half of 2005, EMEs focused on operations aimed at meeting domestic and external obligations and lengthening maturities.
I am pleased to report to you that as of December 2006, total outstanding loans of 212 banks to more than 650,100 microfinance borrowers had exceeded P4 billion. Also as of December last year, these borrowers had accumulated modest savings averaging P2,000 (two thousand pesos) each or a total of about P1.4 billion!