Tuesday, July 8, 2014
COOP-NATCCO REP. PAEZ FOR CREDIT SURETY FUND COOPS
Some 430 cooperatives, jointly with 15 NGOs, 34 LGUs, the Development Bank of the Philippines, Land Bank of the Philippines, and the Industrial Guarantee and Loan Fund, have forged a partnership with the Bangko Sentral ng Pilipinas, for the creation of Credit Surety Funds (CSF) nationwide.
A published BSP report cites that as of March 31, 2014 there are now 29 CSFs set up in 22 provinces and 7 cities nationwide, with loans approved under this program now amounting to P1.1-billion, which benefited 8,421 beneficiaries.
First launched by BSP IN 2008, the CSF "..pools the contributions of well-managed and well-capitalized cooperatives along with entities mentioned above, and make use of such pool of funds as surety against loans of the cooperatives.
The CSF fund is deposited in a trustee bank and invested in high-yielding government securities. It is intact, it earns and any member of the cooperatives who wishes to withdraw has the flexibility to do this and his principal remains, published BSP said further.
Perhaps it is for the actual benefit and potential of CSFs that COOP-NATCO Partylist REP. CRESENTE C. PAEZ filed HB 278.
It provides for the creation and organization of CSF cooperatives, to manage and and Credit Surety Funds to enhance and the accessibility of micro, small and medium entrepreneurs, cooperatives and and non-government organizations to the credit facility of banks.
Rep. Paez said that the bill seeks to create special cooperatives to be known as Credit Surety Fund Cooperatives (CSF Coops) to administer and manage their respective Credit Surety Funds.
(Sources: BSP Special Newspaper Supplement; House of Reps. Committee Daily Bulletin). (END).