Empowering MSMEs in Dinagat Island province

 

By Rose de la Cruz

 

Bangko Sentral ng Pilipinas is soon signing a memorandum of agreement with the local officials of the island province of Dinagat to establish the Dinagat Island Credit Surety Fund that would finance cooperatives, capital-short businessmen and micro small and medium enterprises (MSMEs).

 

BSP Monetary Board member Bruce Tolentino is flying to Dinagat to sign the MOA with Provincial Gov. Glenda Ecleo in the presence of stakeholders at the Provincial Guest Center, Capito Compound, Cuarinta, San Jose, Dinagat.

 

Initiated by BSP in August 2008, the Credit Surety Fund Program is a credit enhancement scheme designed to increase the creditworthiness of cooperatives, businessmen and micro, small and medium enterprises (MSMEs) that are encountering difficulties in getting access to bank credit due to lack of acceptable collaterals and credit information.

 

It is created by the pooling of cash contributions from participating cooperatives, local government units and partner institutions, which will then serve as security for loans extended by banks to MSMEs in lieu of acceptable collaterals.

 

The passage of Republic Act 10744 (or the CSF Cooperative Act) in 2016 institutionalized the Credit Surety Fund Program, granting the CSF a separate juridical personality as a special type of cooperative. Under this law, CSF Cooperatives will be regulated and supervised by the Cooperative Development Authority, being the country’s statutory regulator of cooperatives.

 

As of 28 August 2018, 16 cooperatives pledged to contribute an aggregate amount of P2.1 million to the Dinagat Islands CSF, while the provincial government has initially pledged P3.0 million. Development Bank of the Philippines and Land Bank of the Philippines are also expected to put up their counterpart contributions to the Dinagat Island CSF. Through this program, the participating cooperatives and their MSME members with viable business plans can obtain loans from banks even without collaterals. This will usher in more economic activities and will create more job opportunities that translate to increase in household income.

 

Two more CSFs are expected to be launched before the year ends. These are the CSFs in the Province of Ifugao and in the City of Tacurong, Sultan Kudarat.

 

Now on its 10th year, the CSF Program has been established in 32 provinces and 20 cities nationwide.

 

Like us in Facebook

Features

Latest News

UBS gears for sustainability in its global operations

  By Rose de la Cruz   UBS, the leading investment in the Philippines and consistently ranked top 2 among international investment banks, is... Read More...
NEDA commits to stronger collaboration among developing countries

    By Rose de la Cruz   Socioeconomic Planning Secretary Ernesto Pernia today said the Philippine government, through the National Economic and... Read More...
Bong still unsure of Senate run

Should he stay or should he go?  This is the question that Special Assistant to the President Christopher “Bong” Go is trying to answer and... Read More...
IMAGE In the know: Solar Philippines

Solar Philippines is currently the country’s – and Southeast Asia’s – largest solar-energy company. Founded in August 2013 by Leandro... Read More...
Stupid Name Giver and Other Laughs

Stupid Name Giver Late one night, a burglar broke into a house. While he was sneaking around he heard a voice say, "Jesús is watching you."  He... Read More...
Confession Code and other laughs

Confession Code AN old priest who became sick of all the people in his parish who kept confessing to adultery said one Sunday, in the pulpit,"If I... Read More...
IMAGE A DELICATE BALANCE

Photo courtesy of Top Gear Philippines Officials of motorcycle-sharing service company Angkas must be grinning all the way to the bank. After a... Read More...
IMAGE TULOY ANG LABAN SA DENGVAXIA

MABUTI naman at tuluyan ng nagpasiya ang pamahalaan na sampahan ng karampatang kaso ang mga sangkot sa kontrobersyal na Dengvaxia anti-dengue... Read More...

Our Guests

Today200
Yesterday813
This week5414
This month18019
Total1232146

Visitor Info

  • Your IP: 18.234.236.14

Who Is Online

25
Online

Saturday, 20 April 2019
© 2016 OpinYon News Magazine Online. All Rights Reserved.

Please publish modules in offcanvas position.