CDA: Coops are partners for growth

CEBU, Philippines — Cooperative Development Authority Undersecretary Joseph Encabo voiced optimism during the recent 1st National Credit Surety Fund Cooperative Congress held in Cebu City that cooperatives help stimulate growth, sustainability and financial stability in the country.

Encabo, chairman of CDA Board of Directors, in a press conference also urged the public to be a member of a legitimate cooperative instead of putting their hard-earned money on investment that turned out to be a scam.

When the benefit is too good to be true, then it s not true,  said Encabo, referring to investments that offers huge interests rates at a short period of time.

Encabo warned that all cooperatives, except electric cooperatives, must be registered with the CDA and that any entity claiming to be cooperative but not registered with CDA is operating illegally.

Meanwhile, the CDA central Office described the cooperative congress as successful.

This was relayed by Atty. Maria Lourdes Pacao, CDA deputy administrator, to Dr. Emedio Bustillo, chairman of the Mandaue City Credit Surety Fund Cooperative after the three-day congress. The event was held from October 24 to 26, 2023.

Bustillo said that the congress, spearheaded by Mandaue City Credit Surety in partnership with Mandaue City and in coordination with the CDA, was attended by 35 CSFs consisting of 450 member primary cooperatives nationwide.

Officials from Department of Trade and Industry, Land Bank of the Philippines, Development Bank of the Philippines, Philguarantee Corp., and Regional Officials of CDA shared their expertise in motivating cooperatives to invest more in order to expand their business.

Congressman Wilbert Lee, of AGRI Partylist, also shared ideas in his advocacy for the welfare of agriculture sector.

He likewise mentioned other assistance he facilitated in education and health areas.

A CSF Cooperative is established by R.A. 10744 in 2015 for the primary and exclusive purpose of administering the CSF, which is used to provide credit enhancement support by way of issuing surety cover to secure loans of qualified MSME and cooperative/NGO borrowers in lieu of hard collaterals.

During the last day of the CSF Congress, the CSF members agreed to propose amendments, among others in the amount of mandatory reserves for surety and its paid up capital.

They also proposed to consider CSFs as federation in so far as cooperatives are concerned.

There was also a proposal for the national government to allocate funds from the annual appropriations to every CSF.

Under the law, CSF members are cooperatives, government financing institutions, other banks, and NGO/Pos.

For this purpose, through a resolution, they created a technical working group, headed by Bustillo, to study and finalize the proposals to be submitted to Congress and the Office of the President. - /LPM (FREEMAN)