BSP Establishes Credit Surety Fund in Tacloban and Mandaue
Manila—(PHStocks)—The Bangko Sentral ng Pilipinas (BSP) launched two more Credit Surety Funds (CSFs), the Tacloban City CSF on 26 June 2017 at the Patio Victoria, San Jose, Tacloban City, and the Mandaue City CSF on 27 June 2017 at the Big Hotel, NRA (Parkmall Drive), Mandaue City, Cebu.
Leading the signing of the Memoranda of Agreement were BSP Deputy Governor Diwa C. Guinigundo with City Mayor Cristina Gonzales-Romualdez for Tacloban City CSF, and with City Mayor Gabriel Luis R. Quisumbing for Mandaue City CSF.
The Tacloban City and Mandaue City CSFs are the 47th and 48th CSF in the country, respectively, and the 8th and 9th CSF established in the Visayas region, respectively. The two CSFs are expected to spur business growth, stimulate economic activities and provide job opportunities.
Initiated by the BSP in August 2008, the CSF is a credit enhancement program for the Micro, Small, and Medium Enterprises (MSMEs) that cannot access bank credit due to lack of hard collaterals and credit history. It is created through the pooling of monetary contributions from cooperatives, non-government organizations, local government units, and partner institutions. The fund serves as an alternative security in lieu of the hard collaterals required by banks, thereby helping capital-short MSMEs with viable business plans gain access to bank loans.
Eighteen cooperatives joined the Tacloban City CSF, while fifteen cooperatives joined the Mandaue City CSF. In support, the respective City Governments have added their counterpart contributions to the Fund. Partner institutions such as the Development Bank of the Philippines, Land Bank of the Philippines and the Industrial Guarantee and Loan Fund will also provide their respective contributions to the Tacloban City and Mandaue City CSFs.
As of 30 April 2017, a total of P3.25 billion in bank loans have been released to 16,360 beneficiaries.
On 06 February 2016, the CSF has been institutionalized through the enactment of Republic Act No. 10744, otherwise known as the “Credit Surety Fund Cooperative Act of 2015”.
Now on its 9th year, the CSF already has presence in 31 provinces and 17 cities nationwide.