Credit Surety Fund seen to boost.....

Credit Surety Fund seen to boost

economic resiliency in the countryside

By Mark Anthony M. Gito

DIPOLOG CITY - A Memorandum of Agreement (MOA)  among stakeholders of Zamboanga del Norte and Dipolog City Credit Surety Fund (CSF) was recently inked with partner institutions of the CSF such as the Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP) and the Industrial Guarantee and Loan Fund (IGLF).

The MOA signing was spearheaded by Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo at Top Plaza Hotel, this city on September 3, 2014.

Also in attendance were DBP Senior Assistant Vice President (SAVP) Aurora Maghirang, LBP Department Manager Vinicius Hamoy, and IGLF  Senior Assistant Vice President Ma. Jocelyn Q. Pobre.

An audio-visual presentation dubbed “Credit Surety Fund: Sustaining Economic Growth through Increased Credit Flows” was shown by BSP to better understand, appreciate and get a clear vision of the CSF.

Mayor Evelyn T. Uy pointed out that without enough finances, government programs and interventions would be limited and the duty of carrying out public welfare will be delayed or worst, denied.

“We are given the power to enter into contract as stated in our local government code and we are blessed to have CSF that will carry out our plans. Indeed, our partnership is designed to alleviate the status of many Dipolognons,” Mayor Uy quoted.

BSP Deputy Governor Diwa C. Guinigundo said this will be extended to their respective cooperatives and NGOs in establishing an even bigger CSF in the province.

“What we can see from this consolidation is an even more potent, more responsive, more effective CSF in this part of the Philippines capable of advancing the cause of micro, small and medium enterprises (MSME) thereby achieving economic resiliency,” cited Guinigundo.

“We should be seeing more MSME’s enabled to start up operations, or expand their existing capacity. We should be seeing more job opportunities from this business process. We should be seeing more people leapfrogging from poverty to economic empowerment,” Guinigundo quoted.

According to him, “there are 7 cooperatives and 2 NGOs with total combined funds of P14.5 million under the Dipolog City CSF. On the other hand, there are 11 coops and only 1 NGO with  total funds of P8.4 million in the province of Zamboanga del Norte. If this is added to the existing fund of Dipolog CSF of P14.5 million, then we have an overall total CSF of P22.9 million.”

“Because of the CSF, there would be no need for members to raise collateral. Members of coops and NGOs would have to assess their own member’s feasibility plan. The oversight committee would further scrutinize the loan proposal before it issues the letter of endorsement and CSF guarantee.

The program allows all MSMEs to borrow from the participating banks even without a long credit history,” he explained.

Governor Roberto Y. Uy, Vice-Mayor Horacio Velasco,  board members, city councilors and other local government officials were all in attendance during the MOA signing. (PIA) (091214)