The Bangko Sentral ng Pilipinas (BSP) is set to launch the Credit Surety Fund Program of the country’s shoe capital on the 24th of November 2014 at 11: 00 o’ clock A.M., at the BSP Assembly Hall, BSP Complex, A. Mabini corner P. Ocampo Streets, Malate, Manila. BSP Monetary Board Member Alfredo C. Antonio and Marikina City Mayor Del R. De Guzman will lead the signing of the Memorandum of Agreement among stakeholders to officially create the Marikina City CSF, the second CSF to be established in the National Capital Region.
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. The CSF 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 10 November 2014, 11 cooperatives confirmed to participate in the Marikina City CSF with pledges aggregating P2.9 million to the Marikina CSF, while the city government has initially pledged P5.00 million. The CSFs’ partner institutions such as 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 Marikina 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 create more job opportunities that translate to an increase in household income.
Now on its 6th year, the CSF Program has been established in 23 provinces and 8 cities nationwide.