BSP launches Mindanao's first credit surety funds
07/29/2009 | 11:36 AM
The Bangko Sentral ng Pilipinas (BSP) will introduce the first credit surety funds in Mindanao, which will guarantee loans of micro, small and medium enterprises (MSMEs) from banks in lieu of collateral.
The central bank will forge a memorandum of agreement with the provincial governments of Davao del Norte and Compostela Valley with the launching of Davao del Norte Credit Surety Fund (DavNor CSF) and Compostela Valley Koopnegosyo Surety Fund (ComVal KSF).
Created from contributions by well-capitalized and well-managed cooperatives, the credit surety fund will have a counterpart contribution from the provincial government and other donors.
"The credit surety fund program was conceptualized by the BSP to increase the flow of credit in the countryside and to highlight the significant role of micro, small and medium enterprises (MSMEs) not only in countryside development but as drivers of the Philippine economy as well," the BSP said.
The credit surety fund will serve as credit enhancement mechanism for MSMEs who are members of cooperatives to be able to access formal credit sources such as from banks.
"It is expected to perk up lending activities in the provinces which in turn will stimulate business and economic activities in the area, create job opportunities and increase the local government's revenues in the form of taxes and fees," the BSP added. -Ruby Anne M. Rubio, GMANews.TV
The central bank will forge a memorandum of agreement with the provincial governments of Davao del Norte and Compostela Valley with the launching of Davao del Norte Credit Surety Fund (DavNor CSF) and Compostela Valley Koopnegosyo Surety Fund (ComVal KSF).
Created from contributions by well-capitalized and well-managed cooperatives, the credit surety fund will have a counterpart contribution from the provincial government and other donors.
"The credit surety fund program was conceptualized by the BSP to increase the flow of credit in the countryside and to highlight the significant role of micro, small and medium enterprises (MSMEs) not only in countryside development but as drivers of the Philippine economy as well," the BSP said.
The credit surety fund will serve as credit enhancement mechanism for MSMEs who are members of cooperatives to be able to access formal credit sources such as from banks.
"It is expected to perk up lending activities in the provinces which in turn will stimulate business and economic activities in the area, create job opportunities and increase the local government's revenues in the form of taxes and fees," the BSP added. -Ruby Anne M. Rubio, GMANews.TV
