The Credit Surety Fund (CSF) Program of the Bangko Sentral ng Pilipinas (BSP) has made another considerable milestone in the City of Tacurong after cooperatives, capital-short businessmen and micro small and medium enterprises (MSMEs) call for the establishment of the program in the city, the fifth in SOCCSKSARGEN Administrative Region.
BSP Managing Director Mary Jane T. Chiong and City of Tacurong Mayor Lina O. Montilla will spearhead the signing of the Memorandum of Agreement among the stakeholders to establish the City of Tacurong CSF. This will be held on the 23rd of October 2018, 10:00 o’clock in the morning, at the Palm Pavilion, Terminal Exit Road, Brgy. Calean, Tacurong City, Sultan Kudarat.
Initiated by the BSP in August 2008, the Credit Surety Fund Program is a credit enhancement scheme designed to increase the creditworthiness of cooperatives, businessmen and micro, small and medium enterprises (MSMEs) that are encountering difficulties in getting access to bank credit due to lack of acceptable collaterals and credit information. It is created by the pooling of cash contributions from participating cooperatives, local government units and partner institutions, which will then serve as security for loans extended by banks to MSMEs in lieu of acceptable collaterals.
The passage of Republic Act 10744 (CSF Cooperative Act) in 2016 institutionalized the Credit Surety Fund Program, granting the CSF a separate juridical personality as a special type of cooperative. Under this law, CSF Cooperatives will be regulated and supervised by the Cooperative Development Authority, being the country’s statutory regulator of cooperatives.
As of 15 October 2018, seven cooperatives pledged to contribute an aggregate amount of P1 million to the City of Tacurong CSF, while the city government has initially pledged P3 million. Development Bank of the Philippines and Land Bank of the Philippines are also expected to put up their counterpart contributions to the City of Tacurong CSF. Through this program, the participating cooperatives and their MSME members with viable business plans can obtain loans from banks even without collaterals..
One more CSF is expected to be launched before the year ends in the Province of Ifugao.
Now on its 10th year, the CSF Program has been established in 33 provinces and 20 cities nationwide.