The Credit Surety Fund (CSF) Program of the Bangko Sentral ng Pilipinas (BSP) finds its way to the doorsteps of Quezon City after cooperatives, capital-short businessmen and micro small and medium enterprises (MSMEs) clamor for the establishment of the Program in the city, the first ever CSF in the National Capital Region.
BSP Governor Amando M. Tetangco, Jr., and Quezon City Mayor Herbert Constantine Bautista will spearhead the signing of the Memorandum of Agreement among the stakeholders for the formal creation of the Quezon City CSF. This will be held on the 18th of August 2014, 10:00 o’ clock in the morning, at the BSP Assembly Hall, 3rd Floor, Cafetorium Building, BSP Complex, A. Mabini cor. P. Ocampo Streets, Malate, Manila.
Initiated by BSP in August 2008, the Credit Surety Fund Program is a credit enhancement scheme designed to increase the creditworthiness of cooperatives, capital-short businessmen and micro, small and medium enterprises (MSMEs) that are encountering difficulties in getting access to bank credit due to lack of acceptable collaterals and credit information. It is created by the pooling of cash contributions from participating cooperatives, local government units and partner institutions, which will then serve as security for loans extended by banks to MSMEs in lieu of acceptable collaterals.
As of 06 August 2014, 14 cooperatives contributed an aggregate amount of P5.05 million to the Quezon City CSF, while the City Government has initially pledged P5.00 million. The Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines are also expected to put up their counterpart contributions to the Quezon City CSF. Through this program, the participating cooperatives and their MSME members with viable business plans can obtain loans from banks even without collaterals. This will usher in more economic activities and will create more job opportunities that translate to increase in household income.
Now on its 6th year, the CSF Program has been established in 23 provinces and 7 cities nationwide.