Loans available to small business in General Santos-A A +A
Friday, May 11, 2012
THE Bangko Sentral ng Pilipinas (BSP) announced Friday the launching next week of the General Santos City Credit Surety Fund (GSCCSF) that will provide loans to small businesses in the city.
The Central Bank said the Credit Surety Fund (CSF) in General Santos City will be the 22nd established in the country.
The CSF is a credit enhancement scheme designed to address the difficulty of micro, small and medium enterprises (mSMEs) in obtaining loans from banks due to lack of acceptable collaterals, credit knowledge and credit track records.
"The establishment of the CSF in the tuna capital of the Philippines is expected to spur economic activities geared towards increased income, more job opportunities and a robust countryside development in General Santos City," the central bank said.
The GSCCSF consists of contributions from well-managed and well capitalized cooperatives within the city, and counterpart contributions of the City Government of General Santos and of donor institutions such as Development Bank of the Philippines, Land Bank of the Philippines and Industrial Guarantee and Loan Fund.
Under the CSF program, the mSME-members of contributing cooperatives may obtain loans from banks even in the absence of acceptable collateral. The surety cover that will be issued by the CSF will take the place of the required acceptable collateral.
The program aims to assist entrepreneurs through a liberalized form of credit and to emancipate mSMEs from excessive financing costs charged by usurious lenders.
The launching of the GSCCSF will be held at the Family Country Hotel and Convention Centre, Mateo Road, Lagao, General Santos City on May 15.
The event will be highlighted by the signing of the Memorandum of Agreement among stakeholders led by Deputy Governor Diwa Guinigundo for the central bank, Mayor Darlene Magnolia Antonino-Custodio representing the City Government of General Santos and representatives from participating cooperatives and donor institutions. (SDR/Sunnex)