Re-Accreditation, Submission of Annual Reports under MNRC MC No. 2, Series of 2020 and Prudential Relief Measures Afforded by MNRC MC No. 1, Series of 2021

September 1, 2021 MICROFINANCE NGO REGULATORY COUNCIL TO : Accredited Microfinance NGOs SUBJECT : Re-Accreditation, Submission of Annual Reports under MNRC MemorandumCircular No. 2, Series of 2020 and Prudential Relief Measures Affordedby MNRC Memorandum CircularNo. 1, Series of 2021 NOTICE WHEREAS , Rule 4, Section 6, of the Implementing Rules and Regulations (IRR) of the Microfinance NGOs Act (Republic Act No. 10693), provides that a Certificate of Accreditation issued by the Microfinance NGO Regulatory Council (MNRC or Council) in favor of a microfinance NGO ["MF-NGO"] shall be valid only for a period of three (3) years from the date of issuance; WHEREAS , under the stated Rule, MF-NGOs may file for the renewal of their Certificate of Accreditation three (3) months prior to its expiration; WHEREAS , the period for re-accreditation draws near for MF-NGOs who have secured their Certificates of Accreditation on or before 31 March 2019; WHEREAS , beginning calendar year 2019, all MF-NGOs accredited under the Microfinance NGOs Act are likewise required to submit the reports listed in MNRC Memorandum Circular No, 2, Series of 2020 ["MNRC MC 2-2020"] on the Annual Submission of Reports by Accredited MF-NGOs ; WHEREAS , the deadline for submission of the MNRC MC 2-2020 reports for calendar year 2019 was on 30 June 2021; WHEREAS , the deadline for submission of reports for calendar year 2020 under the MNRC MC 2-2020 is extended to 31 December 2021 pursuant to MNRC Memorandum Circular No. 1, Series of 2021 ("MNRC MC 1-2021") on the Prudential Relief Measures to Support Economic Recovery of Accredited MF-NGOs ; WHEREAS , for purposes of re-accreditation, MNRC MC 1-2021 allows for the relaxation or waiver of some accreditation requirements under the Microfinance NGOs Act, its IRR and applicable MNRC issuances; NOW THEREFORE , this Council notifies all parties concerned of the following: 1. In light of the expiration of the MNRC Certificates of Accreditation secured on or before 31 March 2019, MF-NGOs who have secured accreditation for the period 2019 to 2022 and are seeking re-accreditation are REMINDED to timely file their applications on or before 31 January 2022 . New guidelines on the MNRC accreditation requirements and processes for the period 2022 to 2025 shall be issued by the Council. Those who shall apply for and are granted MNRC accreditation after 31 January 2022 may incur gaps thereto, resulting in the non-applicability or interruption of the application of the preferential tax rate granted under the Microfinance NGOs Act. 2. All MNRC-accredited MF-NGOs are REMINDED to submit their annual reports on or before the above-stated deadlines under Item 3 of MNRC MC 2-2020, as amended by MNRC MC 1-2021. 1 The pertinent portion of said Circular is reproduced in full below for your reference: Beginning calendar year 2019, all MF-NGOs accredited under the Microfinance NGOs Act are required to submit the following reports to the MNRC annually: a) AFS filed with SEC b) SFFS filed with SEC c) NSPO Form-1, NSPO Form-2 and NSPO Form-3 filed with SEC d) NSPO Form-4 and NSPO Form-5 or NSPO Form-6 filed with SEC, if applicable e) COEPs issued by government offices/entities filed with SEC, if any f) Notarized COEPs issued by heads/officers of private institutions or actual beneficiaries of the program/activity filed with SEC, if any g) Latest GIS filed with SEC h) Loan Portfolio and Aging Report (attached hereto as Annex "D" and made an integral part of this Memorandum Circular) i) Operations Report (attached hereto as Annex "E" and made an integral part of this Memorandum Circular) j) Updated Report Card Template, whether as a large or small MF-NGO4 (Please see https://www.sec.gov.ph/microfinance-ngo-regulatory-council/forms-2/ ) The Notice of the Corporate Governance and Finance Department of the Securities and Exchange Commission (SEC-CGFD) to accredited MF-NGOs, among others, dated 12 May 2021 on the Revised Guidelines on the Submission of Documents, Issuance of Payment Assessment Form, Other Requests and Compliance shall apply until further notice. 3. By virtue of MNRC MC 1-2021, MNRC has recognized the financial losses accredited MF-NGOs may have incurred during calendar year 2020 due to the COVID-19 situation. In view of this and how it may affect compliance with the Microfinance NGOs Act, its IRR and applicable MNRC issuances, applicant-MF-NGOs for re-accreditation are ENCOURAGED to avail of the Circular's prudential relief measures, as follows: A. Relaxation of the One Million Pesos (P1,000,000.00) minimum fund balance required under MNRC Memorandum Circular No. 1, Series of 2018; and B. Relaxation or waiver of compliance to the following, as a result of operations for calendar year 2020: (1) Minimum fifty percent (50%) rating for the financial performance indicator under Item 2.c.i. of MNRC Memorandum Circular No. 1, Series of 2018; and (2) Minimum sixty percent (60%) weighted average rating for all performance indicators under Item 2.c.ii. of the above MNRC issuance. (SGD.) RYZPAH R. CAPICIO Secretary Footnotes 1. MF-NGOs accredited in 2020 are only required to submit their reports for calendar year 2020 on or before 31 December 2021.