Valencia City Credit Surety Fund Launched
The City Government of Valencia and the Bangko Sentral ng Pilipinas together with local stakeholders launched another milestone for the Micro, Small and Medium Enterprises (MSMEs) of Valencia City that will lead to economic progress.
On August 25, 2015, at Jocel’s Garden Venue, Valencia City, a Memorandum of Agreement creating the Valencia City Credit Surety Fund was signed by the City Mayor, Hon. Azucena P. Huervas and the City Vice Mayor Hon. Rolando P. Laviña, together with the Monetary Board Member of Bangko Sentral ng Pilipinas Hon. Valentin A. Araneta, Mr. Benel D. Lagua, the Chief Executive Officer of Industrial Guarantee and Loan Fund, Mr. Neogen M. Chaves, Vice President?Head, RMC Northern Mindanao, Development Bank of the Philippines, Mr. Jose Enedicto G. Faune, Department Manager/Head, Bukidnon Lending Center, Land Bank of the Philippines and Mr. Augusto C. Lopez-Dee, Managing Director of Bangko Sentral ng Pilipinas.
During his keynote address, Hon. Valentin A. Araneta, Monetary Board Member of Bangko Sentral ng Pilipinas emphasized that Valencia Credit Surety Fund is the 13th CSF established in Mindanao and the 43rd CSF nationwide. Its aim is to help cooperatives and micro, small and medium enterprises in Valencia City gain easier access to bank credit even without collaterals. "Credit Surety Fund is essentially a public-private partnership which links the key players of the economy into a unified purpose of empowering the MSME sector," he added.
The City Government of Valencia through the City Mayor Azucena P. Huervas pledged to contribute P2M while the 13 cooperatives which signified their intention to join the Valencia City Surety fund committed an aggregate of P2.2M to the fund. Together with the City Government of Valencia, the Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines have also expressed strong support to the Valencia CSF. In her message, the City Mayor, Hon. Azucena P. Huervas acknowledged the efforts of Bangko Sentral ng Pilipinas in reaching out to developing cities in Mindanao.
Ms. Jane Ann S. Gonzales, the Manager of Credit Innovation and Advancement Group, Department of Loans and Credit of Bangko Sentral ng Pilipinas explained that the CSF Program also provides training to enhance capabilities of participating cooperatives and MSMEs in the areas of financial risk management, entrepreneurship and business management and credit appraisal and monitoring. As of June 30 2015, the total accumulated loans approved by lending banks under the CSF Program amounted to P1.8 billion, of which, P1.5 billion have already been released to 14,591 beneficiaries nationwide.