MANILA, Philippines — Total loans to micro, small and medium enterprises (MSMEs) under a credit enhancement scheme amounted to P5.31 billion since the program was launched more than a decade ago, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The BSP said the Credit Surety Fund (CSF) program has 17,401 beneficiaries since it was launched in August of 2008.
Of the total accumulated loans approved by banks, the BSP said about P5.01 billion has been released to 17,393 beneficiaries nationwide.
The BSP initiated the CSF program as a credit innovation designed to improve MSMEs that cannot access bank credit due to lack of acceptable collaterals and credit information.
The program involves 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.
Now on its 10th year, the credit enhancement scheme designed is now present in 33 provinces and 21 cities nationwide.
BSP managing director Mary Jane Chiong led the signing of a memorandum of agreement for the launching of a CSF in Tacurong City in Sultan Kudarat last Oct. 23.
The BSP is scheduled to launch one more CSF in the province of Ifugao before the end of the year.
The passage of Republic Act 10744 or the CSF Cooperative Act of 2016 institutionalized the program, granting the CSF a separate juridical personality as a special type of cooperative.
Under the law, the Cooperative Development Authority would regulate CSF cooperatives.
BSP Deputy Governor Diwa Guinigundo had said the central bank continues to ramp up the launch of CSF in more cities and provinces nationwide as part of efforts to develop a more inclusive financial system.