MANILA, Philippines - Total loans approved by banks to micro, small and medium enterprises (MSMEs) under a credit enhancement scheme reached P1.8 billion over the past seven years, the Bangko Sentral ng Pilipinas (BSP) reported over the weekend.
Of the total amount, the BSP said P1.5 billion have been released to 14,591 beneficiaries of the Credit Surety Fund (CSF) program as of end June this year.
The BSP initiated the CSF Program in August 2008 as a credit innovation designed to improve the credit worthiness of MSMEs that cannot access bank credit due to lack of acceptable collaterals and credit information.
The CSF, through the issuance of a surety agreement, allows cooperatives and businessmen with viable business plans but limited capital to obtain loans from banks even in the absence of hard collaterals.
The program has been established in 30 provinces and 13 cities nationwide.
The BSP is set to launch the CSF program in the cities of Malaybalay and Valencia in Bukidnon today and tomorrow bringing to 43 the total number of CSFs nationwide.
Malaybalay and Valencia CSFs are expected to stimulate more economic activities in their respective localities ushering in job opportunities to increase household income.
A total of P2.2 million has been pledged by nine cooperatives, while the Malaybalay city government has committed P5 million for the CSF program.
On the other hand, the Valencia city government has pledged P2 million while 12 cooperatives committed P2.2 million for the credit enhancement program.
The BSP is scheduled to launch the program in Nueva Ecija next month.