Aklan Launches Credit Security Fund

The Bangko Sentral ng Pilipinas (BSP), the Provincial Government of Aklan, participating cooperatives and donor institutions, through the initiative of Rep. Teodorico T. Haresco, Jr., formally launch on Friday, Sept. 27, the Aklan Credit Surety Fund (ACS) held at the Sampaguita Gardens Resort, New Washington, Aklan.

The Aklan CSF is a surety fund established to help cooperatives and their member – micro, small and medium enterprises (MSMEs) secure collateral-free loans from banks. The surety fund, which comes from the pooled cash contributions of participating cooperatives, local government units and other partner institutions, serves as the security for the loan in lieu of hard collaterals. 

BSP’s Monerary Oeprations Sub-Sector Managing Director Augusto C. Lopez-Dee and Aklan Provincial Governor Florencio T. Miraflores led the signing of the Memorandum of Agreement (MOA) ushering the creation of Aklan CSF as the 28th Credit Surety Fund in the country.

At the onset, sixteen (16) cooperatives in Aklan have joined the Aklan CSF with an aggregate contribution of P2.8 million while the Provincial Government of Aklan, through Governor Florencio T. Miraflores, has initially pledged to contribute P3 million. The Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines have also expressed strong support to the CSF Program with their contribution pledges to augment the fund. 

Various sectors are expected to benefit from this credit enhancement scheme which also serves as an alternative lending window for MSMEs. The program also integrates a training component to enhance the skills of participating cooperatives in the areas of business, plan preparation, loan evaluation, risk management and accounting system. The BSP Monetary Board has agreed to allow banks to rediscount loans granted under the CSF program to ensure that small businessmen will benefit more from this credit facility. 

Now on its 5th year, the CSF program has been institutionalized in 20 provinces and seven (7) cities in the Philippines. /MP