The Bangko Sentral ng Pilipinas (BSP) will be launching the Credit Surety Fund (CSF) Program in the cities of Malaybalay and Valencia, Bukidnon, on the 24th and 25th of August 2015, respectively. The signing of the Memorandum of Agreement (MOA) formally creating the Malaybalay City Credit Surety Fund (Malaybalay CSF) will be held at Loiza’s Pavilion, Malaybalay City, while that of Valencia City Credit Surety Fund (Valencia CSF) will be held at Jocel’s Garden Venue, Valencia City. BSP’s Monetary Board Member Valentin A. Araneta will spearhead the MOA signing for both Malaybalay and Valencia CSFs, formally creating them as the 42nd and 43rd CSFs in the country, respectively.
Malaybalay and Valencia CSFs are expected to stimulate more economic activities in their respective localities and will usher in job opportunities to increase household income.
Initiated by BSP in August 2008, the CSF Program is a credit innovation designed to improve the creditworthiness of cooperatives and micro, small and medium enterprises (MSMEs) that cannot access bank credit due to lack of acceptable collaterals and credit information. The CSF, through the issuance of a surety agreement, allows cooperatives and businessmen with viable business plans but have limited capital to obtain loans from banks even in the absence of hard collaterals.
Nine cooperatives confirmed to join the Malaybalay CSF with pledges aggregating P2.2 million, while the Malaybalay City Government, headed by Mayor Ignacio W. Zubiri, pledged P5.0 million. On the other hand, Mayor Azucena P. Huervas of the Valencia City Government pledged P2.0 million to match the aggregate P2.2 million contributions of 12 cooperatives that signified their intention to join the Valencia CSF.
As of 30 June 2015, the total accumulated loans approved by banks covered by the CSF amounted to P1.8 billion, of which P1.5 billion have already been released to 14,591 beneficiaries.
Now on its 7th year, the CSF Program has been established in 30 provinces and 13 cities nationwide. The most recent that joined the growing CSF movement across the country was the Santiago City CSF, launched on 17 August 2015. One more is scheduled for launching in September 2015, the Cabanatuan City CSF.