Thursday, February 25, 2016
CSF CO-OPS: FISH OR FOWL?
Nope. I have nothing against the recent enactment of the law (R.A. 10744) creating Credit Surety Fund (CSF) Cooperatives. As some say, this is something devoutly to be wished. And it is now a reality.
Thanks to among others, Rep. Cresente Paez, Chairman of the House Committee on Cooperative Development, who authored/co-authored the bill on this, and to many others.
(We note that Rep. Paez is now running for Senator and is officialy listed as MR. COOP PAEZ, in the Comelec roster. We can support his bid, so more of these measures can come to life.).
Thanks also to Pres. Aquino III for not vetoing this, and allowing it to lapse into law, last February 6, 2016.
My little point of interest here is that, by legislation, a new type of cooperative comes into existence. To the traditionalist, is this a primary cooperative, which conventionally, is supposed to be composed of natural persons?
In the early part of the legislation process, records show that initially, the Cooperative Development Authority (CDA) interposed some objections to this CSP cooperative. Maybe for the same/similar reasons as stated above. I don't know now how CDA feels about CSF cooperatives. But it is now in existence by virtue of law.
Not in a strict sense, though. Of course electric cooperatives and water service cooperatives, as primary cooperatives, have members who are not natural persons, by exception. So, maybe CSF cooperatives may be treated similarly.
Earlier, Rep. Paez stated in a published report that enactment of the CSF co-op law would make available at least P5 billion in funds that may be accessed by MSMEs.
I am glad to note that support for this law from the business sector snowballs. Recently, the Philippine Export Federation, in published reports, has called for the allocation of some P20-billion for an "emergency loan fund to help build the capacities and boost the competitiveness of MSMEs..".
Because of this, I say that CSF cooperatives, whether fish or fowl, is good for MSMEs. Don't take my word for it. The business sector thinks so. (END).