MANILA, Philippines - The Development Bank of the Philippines (DBP) has increased its total approved contributions to the Credit Surety Fund (CSF) program of the Bangko Sentral ng Pilipinas (BSP) to P31 million with its support to the Dipolog Credit Surety Fund. The Dipolog CSF is the 16th CSF project supported by DBP to boost the micro, small and medium enterprises (mSME) sector.
The CFS is a credit enhancement scheme that allows member cooperatives and it member mSME to borrow from banks through a joint letter of surety coverage issued by the CSF oversight committee instead of hard collateral.
DBP is the first financial institution to support the CFS program, while serving as a trustee bank and lender to the participating cooperatives. As of end September, the DBP CFS credit facility has total loans in the pipeline amounting to P154.5 million and approved loans of P34.335 million.