The Bataan Credit Surety Fund (Bataan CSF) will be formally launched today at the Grand Ballroom of Lou-Is Resort and Restaurant in Balanga City, Bataan highlighted by the signing of the Memorandum of Agreement (MOA) among various stakeholders. This event is spearheaded by the Bangko Sentral ng Pilipinas (BSP) led by Monetary Board Member Felipe M. Medalla and Bataan Provincial Governor Albert S. Garcia, in collaboration with the participating cooperatives and partner institutions. It is the 30th CSF established nationwide.
Bataan CSF aims to help cooperatives and micro small and medium enterprises (MSMEs) in the Province of Bataan gain easier access to bank credit, even without collaterals. It is a trust fund set up by pooling contributions of participating cooperatives, local government unit and other partner institutions.
The Province of Bataan, through Governor Garcia, pledged to contribute an initial amount of P5.0 million while 21 cooperatives in the province committed another P7.21 million to the fund. The Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines, the partner institutions of the CSF, have also expressed strong support through their respective contributions to augment the fund.
The MSMEs that obtain loans from banks through the CSF will benefit from lower interest rate compared to exorbitant interest rates charged by private lending investors or loan sharks. The CSF Program also provides training to enhance capabilities of participating cooperatives and MSMEs in the areas of financial and risk management, entrepreneurship and business management and credit appraisal and monitoring. Moreover, to ensure availability of funds in the banking system for CSF loan beneficiaries, the BSP allows banks to rediscount loans granted under the CSF program.