BSP Partners with Province of Bataan for Credit Surety Fund
Manila—(PHStocks)—The Bangko Sentral ng Pilipinas (BSP) is gearing up for the launching of the Bataan Credit Surety Fund (Bataan CSF) on 27 May 2013 at the Grand Ballroom of Lou-Is Resort and Restaurant in Balanga City, Bataan.
Monetary Board Member Felipe M. Medalla of the BSP and Bataan Provincial Governor Albert S. Garcia will spearhead the signing of the Memorandum of Agreement among stakeholders for the formal creation of the Bataan CSF.
Initiated by BSP in August 2008, the Credit Surety Fund Program is a credit enhancement scheme created by the pooling of cash contributions from participating cooperatives, local government units and partner institutions. It seeks to address the problems of cooperatives and capital-short businessmen in gaining access to credit facilities of banks due to lack of acceptable collaterals, credit knowledge and credit track record. The fund will serve as security for loans extended by banks to micro, small and medium enterprises participating in the CSF Program, in lieu of acceptable collaterals.
As of 15 May 2014, 21 cooperatives have signified to contribute an aggregate amount of PhP7.21 million to the Bataan CSF, while the Provincial Government of Bataan has initially pledged PhP5 million. The Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines shall likewise put up their counterpart contributions to the Bataan CSF. The establishment of the CSF in the Province of Bataan will spur economic activities, thus creating more job opportunities that translate to increase in household income.
Now on its 6th year, the CSF Program has been established in 22 provinces and 7 cities nationwide.
