The Bangko Sentral ng Pilipinas (BSP) and Valencia City Government, together with other stakeholders, seal today a social covenant that will bring the micro, small and medium enterprises (MSMEs) to economic progress. The signing of the Memorandum of Agreement (MOA) creating the Valencia City Credit Surety Fund (Valencia CSF) will be held at Jocel’s Garden Venue, Valencia City. This will be led by BSP’s Monetary Board Member Valentin A. Araneta and Valencia City Mayor Azucena P. Huervas, in collaboration with the participating cooperatives and partner institutions. Valencia CSF is the 13th CSF established in Mindanao and 43rd nationwide.
Valencia CSF aims to help cooperatives and MSMEs in Valencia City gain easier access to bank credit even without collaterals. CSF is essentially a public-private partnership which links the key players of the economy into a unified purpose of empowering the MSME sector.
The Valencia City Government, through Mayor Huervas, pledged to contribute P2.0 million while the 12 cooperatives which signified their intention to join the CSF in the city committed an aggregate of P2.2 million to the Fund. The Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines, have also expressed strong support to the Valencia CSF.
As of 30 June 2015, the total accumulated loans approved by lending banks under the CSF Program amounted to P1.8 billion, of which P1.5 billion have already been released to 14,591 beneficiaries nationwide.
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 and credit appraisal and monitoring. Moreover, to ensure availability of funds in the banking system for CSF loan beneficiaries, the BSP allows banks to rediscount loans granted under the CSF program.