The Bangko Sentral ng Pilipinas (BSP), in collaboration with the City Government of Davao, participating cooperatives and donor institutions formally launched today the Davao City Credit Surety Fund (DCCSF) at The Pinnacle Hotel and Suites, Sta. Ana Avenue, Davao City.
The DCCSF is a surety fund established to help cooperatives and their micro, small, and medium enterprises (MSMEs) members secure collateral-free loans from banks. The surety fund is the pooled cash contributions of participating cooperatives, local government unit and other partner institutions.
BSP Deputy Governor Diwa C. Guinigundo and Davao City Mayor Sara Duterte-Carpio will lead the signing of the Memorandum of Agreement (MOA) ushering the creation of DCCSF as the 23rd Credit Surety Fund (CSF) in the country.
Eighteen cooperatives in the city have joined the DCCSF with an aggregate contribution of P5.40 million while the City Government of Davao through Mayor Duterte-Carpio pledged to contribute P5.10 million. The Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines have also expressed strong support to the CSF Program with their contribution pledges to augment the fund.
Different sectors are expected to benefit from this credit enhancement scheme which also serves as an alternative lending window for MSMEs. To enhance the skills of participating cooperatives, the program also integrates training component in the areas of business plan preparation, loan evaluation, risk management and accounting system. The BSP Monetary Board has also approved the rediscounting by banks of loans covered by the sureties issued by the CSF to ensure the flow of credit in the countryside.