MSME loans granted under BSP facility hit P4.6 B
Total loans extended to micro, small and medium enterprises (MSMEs) under a credit enhancement scheme reached almost P4.6 billion, the Bangko Sentral ng Pilipinas (BSP) said.
The BSP said the total accumulated loans approved by banks under the Credit Surety Fund (CSF) program have benefited 17,191 beneficiaries as of end-2017 since it was launched in 2008.
Of the total amount, the central bank said P4.32 billion has already been released to 17,169 beneficiaries nationwide.
The BSP initiated the CSF Program in August 2008 as a credit innovation for MSMEs that cannot access bank credit due to lack of acceptable collaterals and credit information.
The CSF, through the issuance of a surety agreement, allows cooperatives and businessmen with viable business plans but limited capital to obtain loans from banks even in the absence of hard collaterals.
BSP Deputy Governor Diwa Guinigundo said the central bank continues to ramp up the launch of CSF in more cities and provinces nationwide as part of efforts to develop a more inclusive financial system.
He said the program would be launched in the cities of Naga and San Jose as well as the provinces of Camarines Norte and Sultan Kudarat in Mindanao.
“We are looking at launching four CSFs this year,” he said.
Others in the pipeline include the cities of Tacurong and Digos, as well as the province of Dinagat, he said.
Last Nov. 7, the BSP launched a CSF in Batangas City bringing to 51 the number of cities and provinces covered by the program.
The program now operates in 31 provinces and 20 cities nationwide.
Based on the 2015 statistical data provided by the Philippine Statistics Authority, 99.5 percent of the establishments in the Philippines are MSMEs.