The Bangko Sentral ng Pilipinas (BSP) gears up for the launching of the Credit Surety Fund (CSF) Program in the Province of Capiz on 7 March 2012 at Capiz Gymnasium, Roxas City, Capiz. The Chairman of the Monetary Board and Bangko Sentral ng Pilipinas (BSP) Governor, Amando M. Tetangco, Jr., together with the Governor of Capiz, Victor A. Tanco and Municipal Mayor of Panitan, Katherine D. Belo, will lead donor institutions, participating cooperatives and various stakeholders in the signing of the Memorandum of Agreement for the formal creation of the Capiz Credit Surety Fund (Capiz CSF).
Initiated in August 2008, the CSF is a fund created through the pooling of cash contributions from participating cooperatives with an equivalent counterpart contribution from the local government unit and donations from partner institutions. In lieu of acceptable collaterals, the fund will serve as guarantee for loans extended by banking institutions to micro, small and medium enterprises participating in the program.
This innovative credit enhancement program aims to meet the financing requirements of enterprising cooperatives and capital-short businessmen who often experience difficulty in obtaining loans from banks due to lack of collaterals and credit track records. Under the CSF Program, a formal source of credit may now be accessed even in the absence of acceptable collaterals by way of a surety cover issued by the CSF in favor of the lending bank.
Board Member Jonathan B. Besa, Chairman of the Committee on Cooperatives, People’s Organizations and NGOs and Provincial Cooperative Development Officer Proceso Berano, Jr. assisted in gathering twenty (20) cooperatives to participate in the Capiz CSF which resulted to an aggregate contribution of P7.0 million to the fund. The Provincial Government of Capiz and the Municipal Government of Panitan, Capiz, committed counterpart contribution of P8.0 million and P0.5 million, respectively.
Now on its 4th year of implementation, the CSF Program has been institutionalized in 16 provinces and 4 cities nationwide.