THE combined contributions from stakeholders of the Metro Cebu Coopreneurs Surety Fund (CSF) have reached P30 million, the highest surety fund ever raised among the 11 participating CSFs in the country.
Contributions from the 16 member-cooperatives of the Metro Cebu CSF account for P12.1 million of the P30-million fund. The Cebu City Government, for its counterpart contribution, gave P10 million.
Under the CSF scheme initiated by the Bangko Sentral ng Pilipinas (BSP), which was formally launched through a pilot program in Cavite last year, the local government unit (LGU) of a selected province must give a counterpart contribution as a grant to the CSF.Willing agencies are also welcome to act as donor institutions. In the case of the Metro Cebu CSF, the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP) also made contributions to the fund.
However, both banks did not disclose how much their contributions were.
According to an audio-visual presentation prepared by the BSP, the surety fund will guarantee loans availed of by micro, small and medium entrepreneurs (MSMEs). Banks can tap the fund in cases of payment default by the borrowers.
“Through the program, we will be able to tap the full potential of the (MSMEs) by giving them access to funds covered by the surety guarantee,” said BSP Gov. Amando Tetangco Jr.
Only members of participating cooperatives are eligible to avail themselves of loans that will be covered by the surety fund. Instead of collateral, a certification will be
issued by the borrower’s host-cooperative to indicate that he is qualified to make a loan.
Low rates
The program also allows the banks to give loans at lower interest rates.
“I have not seen banks impose more than 12 percent interest rate on (CSF-based) borrowers,” said Andres Rustia, former assistant governor of the BSP and one of the lead proponents of the program.
He added that interest rates of such loans can go as low as 10.5 percent.
Tetangco also believes that as soon as stakeholders become more familiar with the program, the interest rates can be more competitive.
Since the implementation of the program, Tetangco reported that an accumulated P120 million has been raised from various CSFs nationwide and P20 million worth of loans has already been released. An additional P36 million worth of loans is now being processed.
The biggest single loan approved was P10 million, while the smallest was P300,000. Tetangco said this signifies a “broad range of borrowers.”
“This is a good sign,” he added.
Five CSFs are in the Visayas, four in Mindanao and two in Luzon.
Tetangco said the BSP will continue to roll out the program, especially in areas where cooperatives and the LGUs are prepared for such an undertaking.
Among the participating cooperatives in the Metro Cebu CSF are Bacayan Multi-Purpose Cooperative, Bayanihan Multi-Purpose Cooperative, Catmon Community Multi-Purpose Cooperative, Cebu People’s Multi-Purpose Cooperative and Mandaue City Public Market Vendors Cooperative.
No comments:
Post a Comment