The Bangko Sentral ng Pilipinas (BSP), in collaboration with the City Government of General Santos, participating cooperatives and donor institutions, launched today the General Santos City Credit Surety Fund (GSCCSF) at a formal ceremony at the Executive Ballroom of Family Country Hotel and Convention Centre, Mateo Road, Lagao, General Santos City.
The GSCCSF is a surety fund aimed at helping cooperatives and micro, small and medium enterprises (MSMEs) gain access to credit from banks. The surety fund is generated from cash contributions of participating cooperatives, the local government unit and other partner institutions.
BSP Deputy Governor Diwa C. Guinigundo and City Mayor Darlene Magnolia R. Antonino-Custodio led the signing of the Memorandum of Agreement (MOA) ushering the creation of the GSCCSF as the 22nd Credit Surety Fund nationwide.
Fifteen (15) cooperatives from General Santos City joined the GSCCSF with an aggregate contribution of P2.5 million while the City Government of General Santos pledged to contribute another P2.5 million. 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 GSCCSF.
The CSF program serves as an alternative lending window for mSMEs in the city. 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 help strengthen 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 encourage banks to lend more to the mSME sector.