CSF to build culture of strength for MSMEs
The Credit Surety Fund (CSF) program initiated by Bangko Sentral ng Pilipinas will build the culture of strength for the Micro, Small and Medium Entrepreneurs (MSMEs).
Iloilo City Coopreneurs Surety Fund (ICCSF) interim oversight committee chair Mamerto Rodriguez said the project will give MSMEs more access to banks to get a loan without “hard collateral.” It strengthens the existence of MSMEs.
The CSF is a fund generated from contributions by well-capitalized and well-managed cooperatives with a counterpart contribution from the city or provincial government equivalent to the amount contributed by the cooperatives.
Rodriguez said it will create opportunities among cooperatives. The pooling of resources from the city government, Land Bank of the Philippines, Development Bank of the Philippines and Industrial Guarantee and Loan Fund is a “way to success.”
The success of the program depends on the commitment and determination of each cooperative. “We should work together in mutual respect and trust.”
Initially, there are 16 cooperatives in the city which are under the ICCSF. The cooperatives should invest surety funds. The city government shall make a counterpart contribution to the Surety Fund equivalent to the total amount invested by the cooperatives but the counterpart contribution to the Surety Fund by the city government shall not exceed P2,000,000.
On his part, DBP President and CEO Reynaldo David said the CSF is a “long awaited formula” for MSMEs. MSMEs are considered backbone of the economy.
It will give the MSMEs better and easier access for funding assistance. The MSMEs needed much credit improvement. The CSF is more simplified and user friendly, said David.
The DBP will not only speed up the processing of loans but help train cooperatives in capability building and loan evaluation. We are also pushing for the use of raw materials and One Town One Product (OTOP), he said.