ComVal continues with coop assistance
by RG Alama
Davao City (27 February) -- Last year, the Provincial Government of Compostela Valley established a P2.2 million micro-credit assistance program to chosen cooperatives from each of the province's municipalities.
With the success of that program, provincial governor Arturo T. Uy is providing another P2.2 million micro-credit window for more coop beneficiaries.
Uy said that currently the program is achieving a 100% collection rate, so successful that some of the coops-beneficiaries are advancing their payments by one to two months.
Under the financing scheme, the provincial government provides a P100, 000 loan to 22 cooperatives (two coops from each of the 11 municipalities). The loan is payable without interest for two years. The program rewards good payers wherein 75% of the loan is plowed back to the fund while 25% would be in gratis returned to the coop to be used as operational funds.
Apart from the micro-credit assistance program the Governor said that some coops in the province are in the last phase of the process in the availment of the Credit Surety Fund program of the Bangko Sentral ng Pilipinas.
Last 2009, Comval along with Davao del Norte are among the first provinces in Mindanao to avail of BSP's financial window for micro-entrepreneurs. Comval's Koopnegosyo Surety Fund registered a record number of 22 cooperatives contributing about P4-million to the fund.
Through CSF, micro-credit entrepreneurs can now access credit facilities from banks without having to present any collateral this is by way of a surety cover from the fund. (PIA XI) [top]