City Gov’t, Bangko Central ink MOA establishing Credit Surety Fund

City Gov’t, Bangko Central ink MOA establishing Credit Surety Fund

City Gov’t, Bangko Central ink MOA establishing Credit Surety Fund

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TACLOBAN CITY – To help cash-strapped Micro, Small, and Medium Enterprises (MSMEs) gain access to bank loans, the City Government of Tacloban under Mayor Cristina G. Romualdez and the Bangko Sentral ng Pilipinas (BSP) through Deputy Governor Diwa C. Guinigundo launched recently the Credit Surety Fund (CSF) in this City.

On June 26, BSP Deputy Governor Gunigundo and City Administrator Atty. Irene Chiu who represented Mayor Romualdez signed the Memoranda of Agreement (MOA) establishing the CSF, which intends to enhance access of MSMEs to bank loans that will enhance business growth, stimulate economic activities and create more job opportunities.  City Information Office  Chief  Bernardita B. Valenzuela also witnessed the signing held at Patio Victoria.

The CSF was created through the pooling of monetary contributions from cooperatives, non-government organizations, local government units, and partner institutions.  Eighteen local Cooperatives contributed their resources to the fund which will serve as an alternative security in lieu of the hard collaterals required by banks.

Under the MOA, the City Government will also make its contribution to the fund, as well as Partner institutions such as the Development Bank of the Philippines, Land Bank of the Philippines and the Industrial Guarantee and Loan Fund.

The CSF is a credit enhancement program for MSMEs initiated by the BSP in August 2008.  In February 6, 2016, the CSF was institutionalized by way of Republic Act No. 10744, or the  “Credit Surety Fund Cooperative Act of 2015.” -HENRY JAMES G. ROCA/CIO

 

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