The Bangko Sentral ng Pilipinas (BSP) and Quezon City Government seals today a social covenant that will bring MSMEs to economic progress. The signing of the Memorandum of Agreement (MOA) creating the Quezon City Credit Surety Fund (Quezon City CSF) will be made at the BSP Assembly Hall, 3rd Floor, Cafetorium Building, BSP Complex, A. Mabini cor. P. Ocampo Streets, Malate, Manila. The signing will be led by the Chairman of the Monetary Board and Bangko Sentral Governor Amando M. Tetangco, Jr., and Quezon City Mayor Herbert Constantine M. Bautista, in collaboration with the participating cooperatives and partner institutions. It is the 31th CSF established nationwide and first in the National Capital Region.
Quezon City CSF aims to help cooperatives and micro small and medium enterprises (MSMEs) in Quezon City gain easier access to bank credit, even without collaterals. CSF is essentially a public-private partnership which links the key players of the economy into a unified purpose of empowering the MSME sector.
The Quezon City local government, through Mayor Bautista, pledged to contribute an initial amount of P5.0 million while 14 cooperatives in the city committed another P5.0 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 rates 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.