The Bangko Sentral ng Pilipinas (BSP), in coordination with the city government of Parañaque, will launch the Parañaque City Credit Surety Fund (Parañaque City CSF) next week.
Central bank Governor Amando Tetangco Jr., together with Parañaque City Mayor Edwin Olivares, will lead partner institutions and participating cooperatives in signing the Memorandum of Agreement that will formally create the Parañaque City CSF, the 44th CSF in the country and the 3rd in the National Capital Region.
The signing will be held on November 3 at the BSP’s Assembly Hall.
The Credit Surety Fund (CSF) is a credit enhancement program which aims to help unbankable micro, small and medium enterprises (MSMEs) gain access to formal sources of credit. The Fund, which is created by the pooled cash contributions of participating well-capitalized and well-managed cooperatives, local government units and partner institutions, serves as an alternative to hard collaterals and thus improve the bankability and creditworthiness of MSMEs who are short of collaterals.
As of 31 August 2015, the total accumulated loans approved under the CSF Program nationwide have reached P1.91 billion of which P1.66 billion have already been released to 14,613 beneficiaries nationwide. These figures continue to grow as the program penetrates the grass roots.
Thirteen of the city’s cooperatives have signified their intention to join the Parañaque City CSF by pledging an aggregate amount of P4.0 million. On the other hand, the city government pledged P3.0 million as the city’s initial counterpart contribution to the Fund.
With the establishment of Parañaque City CSF, the stakeholders are optimistic that more MSMEs in need of financial help will be benefited by the program.
The last CSF for the year is scheduled to be established next month. The Cabanatuan City CSF will be launched on 09 November 2015 at the Harvest Hotel, Cabanatuan City, Nueva Ecija.
Now on its 7th year of operations, the CSF Program has been institutionalized in 30 provinces and 14 cities nationwide.