MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) will launch today a credit enhancement scheme for micro, small and medium enterprises (MSMEs) in Digos City.
BSP managing director Pia Bernadette Tayag will lead the establishment of the country’s 52nd Credit Security Fund (CSF) in the capital of Davao del Sur today.
A total of 10 qualified cooperatives signified their intent to join the Digos City CSF, contributing an aggregate amount of P2 million, while the city government of Digos pledged P2 million to the fund.
The government financial institutions led by Land Bank of the Philippines, and Development Bank of the Philippines, as well as the Industrial Guarantee and Loan Fund (IGLF) are also expected to put up counterpart contributions to the Digos City CSF.
The credit enhancement scheme program covers 32 provinces and 19 cities nationwide. The last CSF was launched in November last year in Batangas City.
BSP Deputy Governor Diwa Guinigundo said P5 billion worth of loans have been approved by banks under the central bank’s CSF program that was launched in 2008.
The loans were disbursed to around 17,000 beneficiaries as of end-May this year.
The central bank continues to ramp up the launch of CSF in more cities and provinces nationwide as part of efforts to develop a more inclusive financial system.
The BSP is planning to launch the program in Naga, San Jose, and Tacurong as well as in the provinces of Camarines Norte, Dinagat, and Sultan Kudarat in Mindanao.
The program taps the economic potential of the cooperatives and non-government organizations (NGOs). Its focal point is the pooling of contributions of these cooperatives or NGOs, the provincial or city government, government financial institutions such as the Landbank and DBP, IGLF, other government agencies and donors from the public and private sectors.
The principal beneficiaries of the CSF are the capital-short MSMEs that are experiencing difficulty in obtaining loans from banks due to lack of acceptable collaterals, credit knowledge and credit track records.
It is designed to increase their creditworthiness to have better access to bank credit.