The Bangko Sentral ng Pilipinas (BSP) gears up for the launching of the Credit Surety Fund (CSF) Program in the City of General Santos on 15 May 2012 at Family Country Hotel and Convention Centre, Mateo Road, Lagao, General Santos City. The BSP Deputy Governor, Diwa C. Guinigundo, together with the Mayor of General Santos City, Darlene Magnolia R. Antonino-Custodio, will lead donor institutions, participating cooperatives and various stakeholders in the signing of the Memorandum of Agreement for the formal creation of the General Santos City Credit Surety Fund (GSCCSF).
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 issue surety cover to 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.
The City Economic Management and Development Office (CEMCDO) of General Santos City assisted in gathering fifteen (15) cooperatives to participate in the GSCCSF which resulted in an aggregate contribution of P2.5 million to the fund. The City Government of General Santos committed a counterpart contribution of P2.5 million.
Now on its fourth year of implementation, the CSF Program has been institutionalized in 17 provinces and 4 cities nationwide.