The Bangko Sentral ng Pilipinas (BSP) will launch the La Union Credit Surety Fund (CSF) on 14 June 2017 at the BSP Convention Hall, La Union Regional Office, San Fernando City, La Union. Provincial Governor Francisco Emmanuel R. Ortega III of La Union and BSP Deputy Governor Diwa C. Guinigundo will lead partner institutions, cooperatives and various stakeholders in the signing of the Memorandum of Agreement in the creation of the La Union CSF, making it the 46th CSF in the country and the 25th CSF in Luzon. The La Union CSF is expected to stimulate economic activities and provide job opportunities in the province.
Initiated by the 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 an alternative security in lieu of the hard collaterals required by banks, thereby helping capital-short MSMEs with viable business plans gain access to bank loans.
There are 13 cooperatives set to join the La Union CSF contributing an aggregate amount of P3.7 million. In support, the Province of La Union has pledged P3.5 million to the fund. Partner institutions such as the Development Bank of the Philippines, Land Bank of the Philippines and the Industrial Guarantee and Loan Fund are also expected to put up counterpart contributions to the La Union CSF.
Now on its 9th year, the CSF already has presence in 30 provinces and 15 cities nationwide.
As of 31 March 2017, a total of P3.20 billion in bank loans have been released to 16,356 beneficiaries.
On 06 February 2016, the CSF has been institutionalized through the enactment of Republic Act No. 10744, otherwise known as the Credit Surety Fund Cooperative Act of 2015.
Source: Bangko Sentral ng Pilipinas (BSP)