The Cebu Provincial Government contributed Php 3 million funds to the Cebu Credit Surety Fund (CCSF) of the Bangko Central ng Pilipinas (BSP).
This was signified though a signing of a memorandum of agreement with BSP last Aug. 15 at the BSP Regional Office. Present during the signing ceremony were Cebu Governor Hilario Davide III, Vice Governor Agnes Magpale and Provincial Board Member and Committee Chair on Cooperatives, Jude Durano-Sybico.
The CCSF, which was launched in 2009, is a credit enhancement program initiated by BSP to assist micro, small and medium enterprises (MSME) and cooperatives to avail of loan accommodations from banking institutions at a lower cost and even without collaterals.
MSMEs are being considered drivers of economic growth, a breeding ground for entrepreneurs and a provider of employment.
According to BSP Deputy Governor Diwa Guinigundo, BSP will reach out to cooperatives in establishing an even bigger credit surety fund for the entire Cebu, especially now with the support of the Cebu Provincial Government and Cebu City Government.
“There will only be one big Cebu. What we can see from this consolidation is an even more potent, more responsive, more effective CCSF in this part of the Philippines capable of advancing the cause of micro, small and medium enterprises and everybody’s goal of economic empowerment,” Guinigundo said.
The fund contributed by the Cebu Provincial Government and other donor institutions like the Development Bank of the Philippines and the Land Bank of the Philippines will multiply the loanable amount from the participating banks by 10.
“We should be seeing more MSMEs starting operations or expanding their existing capacity. We should be seeing more job opportunities from this business process. We should also be seeing more people leapfrogging from poverty to economic empowerment,” Guinigundo said.
In 2009, Cebu CSF’s total fund pool was Php 32.1 million. This amount increased in the five years of successful operations. As of 2014, the total fund, inclusive of earnings, reached Php 45.6 million, an increase of Php 13.5 million or 29.6 percent.
The total amount of approved loans reached Php 265 million, of which Php 173 million was released to 265 beneficiaries with an average loan of Php 668,000 each. The maximum amount that may be endorsed by the fund is Php 225 million. Its outstanding loans stood at Php 63.4 million.
As a result, Cebu CSF is awarded as the Most Outstanding CSF this year by Bangko Sentral ng Pilipinas.
With the infusion of another Php 3 million as additional contribution from all their donor institutions, the total fund will increase to Php 51.6 million, further augmenting the loans that may be endorsed for the benefit of the MSMEs.
“If every province and city all over the Philippines will do the same, this is indeed a quick way to address what people love to call jobless growth. We expect you to continue growing, consolidating, innovating, sharing with one another of your skills and experience,” Guinigundo said.
BSP-Cebu head Demetrio Casipong believes that CSF has found its way with greater sustainability and eagerly supported by its partners not only because of its noble objective and in the way it intends to uplift the Philippine economy and the lives of every Filipino but also in supporting the inclusive growth of the present administration.
BSP assured that they will always be around to assist the local government units on their key concerns to ensure sustainability of the program while partner institutions pledged to continue looking for ways to help the Cebu CSF expand its coverage to help more MSMEs.
Click the link to know more of the Credit Surety Fund (CSF): Concept and Creation and other FAQs