BSP, CAPIZ PROVINCE SEALS PARTNERSHIP THROUGH CREDIT SURETY FUND PROGRAM
The Bangko Sentral ng Pilipinas (BSP) collaborates with the Provincial Government of Capiz, participating cooperatives and donor institutions in establishing the Capiz Credit Surety Fund (Capiz CSF) during a formal launching ceremony at 2:00 pm today at the Capiz Gymnasium, Roxas City, Capiz.
The Capiz CSF is a surety fund aimed at helping cooperatives and micro, small and medium enterprises gain access to credit from banks. The surety fund is generated from cash contributions of participating cooperatives, the local government units and other partner institutions.
The Chairman of the Monetary Board and Governor of Bangko Sentral ng Pilipinas, Amando M. Tetangco, Jr., Provincial Governor of Capiz, Victor A. Tanco, and Panitan Municipal Mayor, Katherine D. Belo, will lead the signing of the Memorandum of Agreement (MOA) thereby creating the Capiz CSF as the 21st Credit Surety Fund nationwide.
Twenty (20) cooperatives from the province are joining the Capiz CSF with an aggregate contribution of P7.0 million while the Provincial Government of Capiz and the Municipal Government of Panitan pledged to contribute P8.0 million and P0.5 million, respectively. Likewise, the Development Bank of the Philippines, Land Bank of the Philippines and the Industrial Guarantee and Loan Fund expressed strong support to the CSF program with their counterpart pledges to the Capiz CSF.
The CSF program serves as an alternative lending window for mSMEs in the province and businessmen are expected to take advantage of this credit enhancement scheme which has received wide acceptance from various stakeholders since 2008. The CSF program also integrates a training component to address the weaknesses of participating cooperatives in the areas of business plan preparation, credit appraisal, risk management and accounting. The BSP Monetary Board has agreed to allow banks to rediscount loans granted under the CSF program to ensure that small businessmen will benefit more from this credit facility.