The Bangko Sentral ng Pilipinas will formally launch the General Santos City Credit Surety Fund (GSCCSF) on 15 May 2012, at 10:00 am, at the Family Country Hotel and Convention Centre, Mateo Road, Lagao, General Santos City. This is the 22nd Credit Surety Fund (CSF) established nationwide.
This event will be highlighted by the signing of the Memorandum of Agreement among stakeholders led by Deputy Governor Diwa C. Guinigundo for the Bangko Sentral ng Pilipinas, Mayor Darlene Magnolia R. Antonino-Custodio representing the City Government of General Santos and representatives from participating cooperatives and donor institutions.
The Credit Surety Fund is a credit enhancement scheme designed to address the 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 GSCCSF consists of contributions from well-managed and well-capitalized cooperatives within the city, and counterpart contributions of the City Government of General Santos and of donor institutions such as Development Bank of the Philippines, Land Bank of the Philippines and Industrial Guarantee and Loan Fund. Under the CSF program, the mSME-members of contributing cooperatives may obtain loans from banks even in the absence of acceptable collateral. The surety cover that will be issued by the CSF will take the place of the required acceptable collateral. The program aims to assist 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 tuna capital of the Philippines is expected to spur economic activities geared towards increased income, more job opportunities and a robust countryside development in General Santos City.