Today, the Bangko Sentral ng Pilipinas (BSP) and Marikina City Government seal a social covenant that will bring Marikina City MSMEs to economic progress. The signing of the Memorandum of Agreement (MOA) creating the Marikina City Credit Surety Fund (CSF) will be held at the BSP Assembly Hall, BSP Complex, A. Mabini corner P. Ocampo Streets, Malate, Manila. This will be led by Monetary Board Member Alfredo C. Antonio and Marikina City Mayor Del R. De Guzman, in collaboration with the participating cooperatives and partner institutions such as the Development Bank of the Philippines, Land Bank of the Philippines and Industrial Guarantee and Loan Fund. The Marikina City CSF is the 32nd CSF established nationwide and the 2nd in the National Capital Region.
The Marikina City CSF aims to help cooperatives and micro small and medium enterprises (MSMEs) in Marikina City gain access to bank credit even without collaterals. The Program is essentially a public-private partnership which links the key players of the economy into a unified purpose of empowering the MSME sector.
The Marikina City Government pledged to contribute an initial amount of P3.0 million while 7 cooperatives in the city committed another P2.2 million to the fund. IGLF, DBP and Land Bank have also expressed their strong support by providing their respective contributions to the Marikina CSF.
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, credit appraisal and monitoring and other related trainings. Moreover, to ensure continuous flow of credit in the countryside, the BSP has allowed banks to rediscount loans granted under the CSF program.