The Bangko Sentral ng Pilipinas (BSP), in partnership with the Provincial Government of Laguna, will launch the Laguna Credit Surety Fund (LCSF) on 28 August 2012, 10:30 AM, at the Cultural Center of Laguna, Provincial Capitol Compound, Sta. Cruz, Laguna. This is the 25th Credit Surety Fund (CSF) established nationwide.
This event will be highlighted by the signing of the Memorandum of Agreement among stakeholders of the LCSF headed by Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr., Laguna Governor Jeorge E.R. Ejercito Estregan and representatives from cooperatives and donor institutions.
The CSF is an advocacy of the BSP designed to help capital-short micro, small and medium enterprises (MSMEs) that experience difficulty in getting bank credit due to lack of acceptable collaterals, credit knowledge and credit track records.
The LCSF is created by pooling the contributions of well-managed and well-capitalized cooperatives of the Province of Laguna, with counterpart contributions from its provincial government, and donor institutions such as the Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines. Through the LCSF, the cooperatives and their MSME members can now gain access to credit facilities of banks without worrying about collateral requirements. Small businessmen will no longer have to pay excessive financing costs charged by usurious lenders, thereby increasing the flow of economy in the locality.
The advent of the CSF in the province is expected to spur economic activities geared towards increase in income, more job opportunities and countryside development.