City gov’t, BSP launch program to help cooperatives-A A +A
Friday, July 13, 2012
SOME 20 cooperatives have committed to participate in the program Davao City Credit Surety Fund (DCCSF), which was launched Thursday to serve the city's coop-micro small and medium enterprises (MSMES).
Top officials from the City Government of Davao led by Mayor Sara Duterte-Carpio and Bangko Sentral ng Pilipinas (BSP) deputy governor Diwa Guinigundo attended the launching program and signing of the memorandum of agreement (MOA) for the DCCSF at the Pinnacle Hotel.
Giving support to the program are three financial institutions like the Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP) and the Industrial Guarantee Loan Fund (IGLF).
The City Government of Davao and BSP are jointly spearheading the DCCSF, which will provide cooperatives the guarantee fund at 10 times from their actual amount deposited without collateral.
City Cooperative Development Office (CCDO) officer-in-charge Jaime Adalin, in an earlier interview, said those well-organized and well-financed cooperatives can become beneficiaries of the CSF.
Guinigundo, in an interview Wednesday at the Apo View Hotel Davao, said the CSF will contain the contributions from the cooperatives themselves and the City Government of Davao.
Cooperatives will have to contribute a minimum of P100,000, and the accumulated contributions will then become the surety fund.
"The beauty of this is instead of each cooperative putting up its own collateral, they (cooperatives) pull all the resources which become the credit surety fund. This is deposited in one of the participating banks," Guinigundo said.
He said CSF support cooperatives to remain stable. "If somebody (members) reneges their commitment to pay, dito kukunin yun (they can get their money here)," Guingundo said, referring to the CSF.
However, before cooperatives are able to borrow fund from the CSF the oversight committee composed of the representatives from the city government, BSP, LBP, DBP and IGLF will review the feasibility of the cooperatives' projects.
"They cannot submit anything to the bank, unless the oversight committee has already seen the feasibility of those projects," Guinigundo said.
"The banks can reclaim the amount borrowed by the cooperatives at the BSP," he added.
Published in the Sun.Star Davao newspaper on July 13, 2012.