The 50th Credit Surety Fund (CSF) Program was launched last Oct. 2 in Cauayan City, Isabela to mark a new milestone for the program.
The memorandum of Agreement (MOA) among partner institutions, cooperatives and various stakeholders, led by Bangko Sentral ng Pilipinas Monetary Board Member Juan de Zuñiga and Cauayan City Mayor Bernard Faustino Dy, was signed in Cauayan City, Isabela, which marked the creation of the Cauayan City CSF.
The event followed another BSP milestone, which was the establishment of the BSP Cash Center in Cauayan City.
Initiated by the Bangko Sentral ng Pilipinas (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 alternative security in lieu of the hard collaterals required by banks, thereby helping capital-short MSMEs with viable business plans gain access to bank financing.
Seven qualified cooperatives joined the Cauayan City CSF, contributing P3 million. In support, the Cauayan City Government pledged P3 million 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 are also expected to put up counterpart contributions to the Cauayan City CSF.
Now on its 9th year, the CSF operates in 31 provinces and 19 cities nationwide. As of 15 September 2017, total CSF loans reached P3.8 billion, with more than 16,000 beneficiaries. RIZA LOZADA