BSP to launch Negros Oriental Coopreneurs Surety Fund
By Jennifer Catan-Tilos
Dumaguete City (June 11) -- The Negros Oriental Coopreneurs Surety Fund will be jointly launch by the Bangko Sentral ng Pilipinas (BSP) and Provincial Government and the Memorandum of Agreement signing among stakeholders will also be held on Friday, June 19, 2009 at 10:00 in the morning at the Luce Auditorium, Silliman University, this city.
The Credit Surety Fund (CSF) program was developed by the BSP to enhance the credit worthiness of micro, small and medium enterprises (MSMEs) which are considered the drivers of the economy.
According to BSP Director of the Loans and Credit Department, Rosalinda Dumaliang, these comprise 99.1 percent of total registered establishments in the country and employ 70 percent of the labor force.
Director Dumaliang said, in terms of value added, MSMEs were able to contribute only 30 percent to the country's economy. One of the causes identified for this low contribution was the MSMEs difficulty in getting access to credit from banks due to stringent documentary requirements, she said.
With CSF, once adopted, will enhance MSMEs productivity performance and ability to create jobs and overall employment prospects, BSF official said.
The CSF involves the creation of a trust fund to be contributed by local cooperatives in the province. This will be used as surety in lieu of hard collaterals for the loans of MSMEs with banks.
For now, some 18 cooperatives have pledged to contribute a tentative amount of P6.4 million to the fund. One of it, is the provincial government of Negros Oriental represented by Governor Emilio Macias II has already made a commitment to contribute to the CSF equivalent to the total contributions of the cooperatives. (PIA/JCT) [top]