Presidential Communications Operations Office

  PIA Bldg, Visayas Ave, Diliman, Quezon City, Philippines
  Sunday, 24 October 2021 News Before 1 Feb 2012. Click for Latest
Web PIA  
 << October 2021 >> 
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
Special News Editions:
PIA Specials:
NEW! Cabinet Officials
Jobs.Slides.Specials.Ads. Events.ASEAN.Multimedia
Visitors since 15 Feb 2011:
PIA News Archive:
PIA Archive News Reader

PIA Press Release

Bangko Sentral extends CSF to Davao Oriental, North Cotabato

By Mai Gevera

Davao City (10 September) -- After the provinces of Davao del Norte and Compostela Valley, the Bangko Sentral ng Pilipinas has closed deal with the provinces of Davao Oriental and North Cotabato for their Credit Surety Fund, Bangko Sentral's latest financial window.

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 to guarantee the loans of micro, small and medium entrepreneurs in the locality without the hassles of collateral.

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.

This time, BSP has seen the potentials of the two provinces; North Cotabato having a strategic position in the entire Mindanao as well as Davao Oriental being the highest producer of coconut, mango, and wood products.

For Davao Oriental, the local government contributed P1 million as it counterpart for the fund, while the cooperatives set apart P1.5 million.

The cooperative which pledged the highest is the Manay Coconut Farmers Multi-Purpose Cooperative.

North Cotabato, on the other hand, gathered P12 million from the local government while the P3.2 million was allocated by the cooperatives just to run the Credit Surety Fund in the province.

Cooperatives, through this window, will now be able to have their members borrow money to run their own business.

BSP believes that the fund is the answer to the common problem of most micro entrepreneurs who could hardly get a loan in financial institutions due to lack of collateral, unstable income, lack of business experience, and low paying capacity.

Also, MSMEs goals of developing and expanding their business are usually hampered by these problems.

Through President Gloria Macapagal-Arroyo who signed Republic Act 9501 or the Magna Carta for MSMEs, the BSP has now opened the Credit Surety Fund, a fund generated from contributions by well-capitalized cooperatives, the provincial government and other donors like banks.

Cooperatives which have a minimum capital-to-assets ratio of 30% or a capital-to-risk asset of 12% or higher can avail this program.

This program gives MSME's access to credit from banks even without collateral by way of a surety cover issued jointly by the parties.

Cooperatives, on their part, benefit from this as they provide their members of good standing access to formal sources of credit and they also derive additional income from surety fees. Banks, too, find this program beneficial as credit risks associated with extending loans to MSMEs are mitigated. While local government units benefit by way of higher tax revenues arising from increased economic activities. (PIA XI) [top]

|«  prev  next  »|
»4 months remain for filing Filipino WWII veterans equity compensation claims
»Bangko Sentral extends CSF to Davao Oriental, North Cotabato
»Moro youth calls for decentralized governance; stronger youth involvement
»Davao Norte sends P1-M, medicines to 'Ondoy' victims
»Cebuano News: Gikan sa Comval: P400,000, relief goods, ug mga pagkaon ngadto sa mga biktima ni Ondoy
»Ifugao discusses population and development concerns
»Ifugao to stand up and fight poverty
»DPWH Ifugao employs 661 workers
»Typoons leave P102-M damages in Ifugao
»PNP Ifugao says good community relationship keeps province economically stable
|«  prev  next  »|

Philippine Official Gazette | Office of the President | Presidential Communications Operations Office
For comments and feedback, please email PIA Newsdesk
Copyright © 2005 Philippine Information Agency
PIA Building, Visayas Avenue, Diliman, Quezon City 1101 Philippines