BSP to set up SME facility in Bataan

MANILA, Philippines - The Bangko Sentral ng Pilipinas is putting up Bataan Credit Surety Fund to make it easy for micro, small and medium enterprises to borrow from banks as such will provide them collateral.

BSP said the Bataan CSF will be launched on Tuesday, May 27, with Monetary Board member Felipe Medalla and Bataan provincial Governor Albert Garcia leading the signing of the Memorandum of Agreement.

The CSF, created back in 2008, pools cash contributions from cooperatives, local government institutions, and other partner organisations. The funds will serve as security for loans extended by banks to member MSMEs.

“[This] seeks to address the problems of cooperatives and capital-short businessmen in gaining access to credit facilities of banks due to lack of acceptable collaterals, credit knowledge and credit track record,” the BSP said.

As of May 15, there were 21 cooperatives that pledged to contribute P7.21 million to the Bataan CSF, while the provincial government of Bataan give P5 million.

The Industrial Guarantee and Loan Fund, the Development Bank of the Philippines, and the Land Bank of the Philippines, are also expected to put up their contributions for the CSF.

“The establishment of the CSF in the Province of Bataan will spur economic activities, thus creating more job opportunities that translate to increase in household income,” the BSP said.