The Provincial Government of Agusan Del Norte, the City Government of Butuan and various cooperatives formally join the Credit Surety Fund (CSF) program of the Bangko Sentral ng Pilipinas (BSP) with the signing of the Memorandum of Agreement (MOA) among the stakeholders on November 27, 2014, Thursday at the newly built BSP Butuan Branch along J.C. Aquino Avenue, Butuan City.
The participation of the local government and the cooperatives paves the way for the creation of the CSFs of Agusan Del Norte and Butuan City. The launching and MOA signing event will be spearheaded by the Province of Agusan Del Norte and City of Butuan, the BSP, in collaboration with the participating cooperatives and partner institutions i.e. Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP) and the Industrial Guarantee and Loan Fund (IGLF). The Province of Agusan Del Norte and Butuan City have pledged to contribute to their respective CSFs the amounts of P2.0 million and P5.0 million, respectively. The IGLF, DBP and LBP will likewise contribute to the Fund.
The CSF is a credit enhancement program initiated by the BSP to support micro small and medium enterprises (MSMEs) and cooperatives by providing them easier access to credit facilities of banking institutions. Hence, cooperatives and their MSME-members/farmers can now avail of loans from banks at relatively lower interest rates, even without collaterals. Moreover, to ensure sustainability of the continuous flow of credit in the countryside, the BSP allows banks to rediscount loans granted under the CSF program.