The Bangko Sentral ng Pilipinas (BSP), the City Government of Digos, participating cooperatives, government financial institutions (GFIs) such as the Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP) and the Industrial Guarantee and Loan Fund (IGLF) have officially launched the country’s 52nd Credit Surety Fund (CSF) yesterday, 25 June 2018, in the Gate City of the South – the Digos City. It is the 1st CSF established in 2018 and the 5th CSF in Region XI – Davao Region.
The signing of the Memorandum of Agreement was led by BSP Managing Director Pia Bernadette R. Tayag and Digos City Mayor Joseph R. Peñas at the Avenue One Hotel, Roxas Ext., Digos City, Davao del Sur.
Ten “well-managed” and “well-capitalized” cooperatives contributed an aggregate amount of P2.0 million and, as counterpart support, the City Government of Digos pledged P2.0 million to the Fund. The LBP, DBP and IGLF are also expected to contribute to Digos City CSF. The pooled fund will serve as security in lieu of the hard collaterals required by banks, thereby helping capital-short MSMEs with viable business plans gain access to bank financing. As of 30 April 2018, a total of P4.68 billion CSF-covered loans have already been released by accredited lending banks to more than 17,000 beneficiaries.
Apart from providing surety to MSME loans, the CSF will equip the participating cooperatives and their MSME-members with added skills and knowledge in credit appraisal and monitoring, financial and risk management, entrepreneurship and business management, among others, through technical assistance such as trainings and seminars.