BSP Launches the Digos City CSF
In partnership with the City Government of Digos, the Bangko Sentral ng Pilipinas (BSP) is launching the 52nd Credit Surety Fund (CSF) in the country on 25 June 2018. Managing Director Pia Bernadette R. Tayag of BSP and Mayor Joseph R. PeAas of Digos City will lead the partner institutions, participating cooperatives and various stakeholders in the signing of the Memorandum of Agreement at the Avenue One Hotel, Roxas Ext., Digos City, Davao del Sur to officially mark the creation of the Digos City CSF.
The CSF Program was conceptualized by the BSP with the theme Sustaining Economic Growth through Increased Credit Flows. The first CSF was established in Cavite in August 2008. It taps the economic potential of the cooperatives and non-government organizations (NGOs). Its focal point is the pooling of contributions of these cooperatives/NGOs, the Provincial/City government, government financial institutions (GFIs) such as the Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP), the Industrial Guarantee and Loan Fund (IGLF), other governments agencies and donors from the public and private sectors.
The principal beneficiaries of the CSF are the capital-short micro, small and medium enterprises (MSMEs) which are experiencing difficulty in obtaining loans from banks due to lack of acceptable collaterals, credit knowledge and credit track records. It is designed to increase their creditworthiness to have better access to bank credit. The Fund will serve as security for loans extended by banks to these MSMEs, in lieu of acceptable collaterals. As of 30 April 2018, a total of P4.68 billion in bank loans secured by CSFs had been released.
Ten qualified cooperatives signified their intent to join the Digos City CSF, contributing an aggregate amount of P2.0 million. In support, the City Government of Digos pledged P2.0 million to the fund. The GFIs and IGLF are also expected to put up counterpart contributions to Digos City CSF.
Almost on its 10th year, the CSF is now in 32 provinces and 19 cities nationwide.
Source: Bangko Sentral ng Pilipinas (BSP)