BSP to set up CSF in Dinagat Islands

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THE BANGKO SENTRAL ng Pilipinas (BSP) will open a new credit facility in Dinagat Islands this week, which is expected to help small businesses gain access to bank financing.

In a statement, the central bank said a credit surety fund (CSF) facility will be opened in the province on Tuesday, marking the second to be started this year.

The BSP and the provincial government are set to sign an agreement this week, which will pave the way for the creation of the first-ever credit surety program across the Caraga Administrative Region.

The central bank’s CSF program provides alternative collateral for micro, small, and medium-scale enterprises (MSMEs) by organizing them into cooperatives entitled to a pooled fund. CSF units then serve as guarantor for its member businesses and nongovernment organizations as they apply for credit lines from banks.

In Dinagat, 16 cooperatives have pledged a total of P2.1 million as seed funding for the CSF while the capitol has committed P3 million, the BSP said.

There are currently 52 CSF facilities, spread across 32 provinces and 20 cities nationwide. Two more facilities will be opened this year in the province of Ifugao as well as in Tacurong City in Sultan Kudarat. — Melissa Luz T. Lopez