MANILA, 19 June 2018 – A total of P5 billion worth of loans has been approved to micro, small and medium enterprises (MSMEs) by banks under the central bank’s Credit Surety Fund (CSF).
Initially launched in 2008, the CSF aims to provide cooperatives and businessmen ease of access to bank credit despite lack of hard collateral and credit information. Last May 2018, BSP Deputy Governor Diwa Guinigundo said that the loans have been distributed to 17,000 beneficiaries in 32 provinces and 19 cities.
The central bank is continuously working on the launch of CSF in more cities and provinces all over the Philippines in line with their goal of further strengthening inclusive financial system in the country.
According to Guinigundo, the BSP is now coordinating with local government units (LGUs) to require ordinances upon launching of CSF on July or August of this year. This loan program is expected to divert MSMEs from loan sharks or ‘5-6’ lenders whose charging high interest rates.
Not affiliated with CoopHub
The central bank also clarified and warned the public that they did not certify CoopHub which declared on their website that they are the “umbrella organization of multi-sectoral groups of community leaders and volunteers.”
The said organization asserts to provide scholarship program to accredited membership in partnership with University of the Philippines Open University (UPOU) and also claims to support MSMEs through idea generation and access to capital and training for marketing support.. The UPOU, in an open statement last 11th of June, denied ties with CoopHub and mentioned that their marketing collateral and name, logo, and pictures were used without their authorization.
Central Bank advices the public to not deal with any person soliciting money or investment and claims to be related to BSP or the CSF. “The public should not to pay any fee to anybody with respect to CSF, because CSF promotional and organization activities conducted by the BSP are free of charge,” the central bank said.
Source: Philippine Star & Manila Times