The Santiago City Credit Surety Fund (Santiago City CSF) will be formally launched today as the 41st CSF in the country. The ceremony will take place at the Zen Hotel, Santiago City, and will be highlighted by the signing of the Memorandum of Agreement (MOA) among stakeholders headed by Santiago City Mayor Joseph Salvador Tan and Bangko Sentral ng Pilipinas (BSP) Monetary Board Member Juan D. De Zuñiga, Jr., the participating cooperatives and partner institutions. The Fund is expected to spur more economic activities and entrepreneurial opportunities for micro, small and medium enterprises (MSMEs) in Santiago City.
Initiated by the BSP in August 2008, the CSF Program is a credit enhancement scheme created by pooling cash contributions from participating cooperatives, local government units and partner institutions. This Fund will serve as alternative collateral for loans extended by banks to MSMEs and cooperatives that participate in the CSF Program. The CSF, through the issuance of a surety agreement, takes the place of hard collaterals that banks traditionally require from borrowers to secure their loans.
So far, seven (7) cooperatives have joined the Santiago City CSF and have contributed an aggregate amount of P3.0 million while the City Government of Santiago pledged P10.0 million. The CSF’s 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 Santiago City CSF.
About a month ago, the Cagayan and Nueva Ecija CSFs were launched in the cities of Tuguegarao and Cabanatuan, respectively. Three more will be established this year; Malaybalay City CSF on 24 August, Valencia City CSF on 25 August, both in the Province of Bukidnon, and in Cabanatuan City, Nueva Ecija in September 2015.
As of 30 June 2015, the total accumulated loans approved by the lending banks under the CSF Program amounted to P1.8 billion, of which P1.5 billion has already been released to 14,591 beneficiaries nationwide. Including the Santiago City CSF, the Program has been established in 30 provinces and 11 cities nationwide.