The 51st Credit Surety Fund (CSF) in the country, which is also the 6th for the year, was established on 07 November 2017 in the Province of Batangas. Officially marking the creation of the Batangas CSF, Monetary Board Member Felipe M. Medalla and Batangas Governor Hermilando I. Mandanas led partner institutions, cooperatives and various stakeholders in the signing of the Memorandum of Agreement at the Provincial Cooperative Development Center, Capitol Complex, Batangas City.
Initiated by the Bangko Sentral ng Pilipinas (BSP) in August 2008, the CSF is a credit enhancement program for the micro, small and medium enterprises (MSMEs) that cannot access bank credit due to lack of hard collaterals and credit history. It is created through the pooling of monetary contributions from cooperatives, non-government organizations, local government units, and partner institutions. The fund serves as alternative security in lieu of the hard collaterals required by banks, thereby helping capital-short MSMEs with viable business plans gain access to bank financing.
Twenty-one qualified cooperatives joined the Batangas CSF, contributing an aggregate amount of P3.350 million. In support, the Batangas Provincial Government pledged P5.0 million to the fund. Partner institutions such as the Development Bank of the Philippines, Land Bank of the Philippines and Industrial Guarantee and Loan Fund are also expected to put up counterpart contributions to Batangas CSF.
Now on its 9th year, the CSF is in 32 provinces and 19 cities nationwide. As of 30 September 2017, a total of P3.76 billion in bank loans had been released.