Cebu Governor Hilario P. Davide III handed over P3 million check to the Development Bank of the Philippines (DBP) as a counterpart contribution for the Credit Surety Fund (CSF) which extends loan to cooperatives accredited by the Capitol.
CSF is designed to enhance credit access for micro, small and medium enterprises as well as cooperatives and non-government organizations.
“This program is part of wealth creation which is one of the things that we asked from cooperatives in order to make them self-reliant rather than relying on dole-outs. Through this, we give them a hook, line and sinker so they can survive,” said Herculene Rizon, Capitol consultant for cooperatives.
Capitol-accredited cooperatives can secure loans from facility banks like DBP and Landbank through the CSF program initiated by the Bangko Sentral ng Pilipinas (BSP).
Gary Maningo, a representative of the BSP, said the CSF program has been existing in the country since 2009 and now has 45 offices in cities and provinces nationwide.
“Government funds are limited. Rather than giving money or lending cooperatives, which is not the job of the province, why not contribute to an existing program,” Maningo said.
Cooperatives that wish to avail themselves of loans to fund their projects must contribute to the CSF. These pooled contributions would constitute the CSF and would be used as sureties for loans.
A certification from the CSF, which reviews the viability of cooperatives’ project proposals, is also needed for the loan to be approved.
According to Maningo, the entry of the province would greatly benefit its constituents since a lot of cooperatives are within its jurisdiction.
Currently, there are 22 Capitol-accredited cooperatives which are members of the CSF.
Other sources of fund for the CSF do not only come from counterpart contribution of local government units and member cooperatives but also from the World Bank and government financial institutions.
Last year, the CSF program was institutionalized after the passage of Republic Act 10744 mandating the creation of local cooperatives to administer the CSF. (Kelvin Cañizares)