The Malaybalay City Credit Surety Fund (Malaybalay CSF) will be formally launched today at Loiza’s Pavilion, Malaybalay City. The ceremony will be highlighted by the signing of the Memorandum of Agreement among stakeholders headed by Malaybalay City Mayor Ignacio W. Zubiri and BSP Monetary Board Member Valentin A. Araneta, the participating cooperatives and partner institutions.
The Credit Surety Fund (CSF) Program aims to help cooperatives and micro small and medium enterprises (MSMEs) gain easier access to the credit facilities of banks at relatively lower costs, even without acceptable collaterals. It is a trust fund set up from pooled contributions of participating cooperatives, local government units and other partner institutions. As of 30 June 2015, the total accumulated loans approved by lending banks and secured by the CSF amounted to P1.8 billion, of which P1.5 billion have already been released to 14,591 beneficiaries.
The City Government of Malaybalay, through Mayor Zubiri, committed to contribute P5 million, while nine cooperatives in the province committed P2.2 million to the Malaybalay CSF. The partner institutions, represented by the Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines, have also expressed strong support to the CSF Program by way of their contributions which will eventually augment the Fund.
To ensure the sustainability of the Fund, the CSF Program also has a training component designed to enhance the capabilities of the participating cooperatives and MSMEs in the areas of financial and risk management, entrepreneurship and business management and credit appraisal and monitoring.