The Bangko Sentral ng Pilipinas formally launches the Capiz Credit Surety Fund as the 21st beneficiary of the Credit Surety Fund Program on 7 March 2012, 2:00 PM, at the Capiz Gymnasium, Roxas City, Capiz.
This event will be highlighted by the signing of the Memorandum of Agreement among stakeholders composed of the Bangko Sentral ng Pilipinas headed by Governor Amando M. Tetangco, Jr., the Provincial Government of Capiz led by Governor Victor A. Tanco, Panitan Municipal Mayor Katherine D. Belo and representatives from participating cooperatives and donor institutions.
The Credit Surety Fund is a credit enhancement scheme designed to address difficulty of micro, small and medium enterprises (mSMEs) in obtaining loans from banks due to lack of acceptable collaterals, credit knowledge and credit track records.
The Capiz Credit Surety Fund (Capiz CSF) is created by pooling contributions from well-managed and well-capitalized cooperatives within the province together with counterpart contributions from the local government units, donor banks and other partner institutions. Under the CSF program, the mSME members of contributing cooperatives may now gain access to credit facilities from banks even in the absence of acceptable collateral through the surety cover to be issued jointly by the Capiz CSF and the cooperative endorsing the loan of the mSMEs. The program aims to assist the entrepreneurs through a liberalized form of credit and to emancipate mSMEs from excessive financing costs charged by usurious lenders.
The establishment of the CSF in the seafood capital of the Philippines is expected to spur economic activities geared towards increased income, more job opportunities and a robust countryside development in the Province of Capiz.