The Bangko Sentral ng Pilipinas (BSP) is set to launch the Northern Mindanao Credit Surety Fund (NMCSF) on 07 January 2013 at The Enterprise Hall, Mallberry Business Suites Hotel, Florentino Street, Cagayan De Oro City. BSP Monetary Board Member Felipe M. Medalla and Misamis Oriental Provincial Governor Oscar S. Moreno will lead the 15 cooperatives in the signing of the Memorandum of Agreement among stakeholders to officially create the NMCSF.
Initiated in August 2008, the CSF is a credit enhancement scheme created by the pooling of cash contributions from participating cooperatives, local government units and partner institutions. This fund will serve as surety for loans extended by banks to micro, small and medium enterprises participating in the CSF Program, in lieu of hard collaterals.
This scheme seeks to improve the bankability of cooperatives and businessmen short on capital who are often confronted with difficulty in obtaining loan accommodations due to lack of collateral, credit knowledge and credit track record. Under the CSF Program, credit facilities may now be accessed even in the absence of hard collaterals through the issuance of a surety cover by the CSF in favor of the lending bank.
Presently, 15 cooperatives/NGOs have signified their intention to join the program and contributed an aggregate amount of P9.4 million to the NMCSF, while the Provincial Government of Misamis Oriental pledged P2.0 million.
Now on its 5th year, the CSF Program has been institutionalized in 19 provinces and seven cities nationwide.