INQUIRER FILE PHOTO
MANILA, Philippines – The Quezon City government has established a fund that will serve as surety cover for bank loans obtained by small businesses, the first local government in Metro Manila to adopt the credit support program developed by the Bangko Sentral ng Pilipinas (BSP).
The Credit Surety Fund Program aims to provide loan security for micro, small and medium enterprises (MSMEs) that are having difficulty obtaining loans due to lack of collateral and credit track records.
Quezon City Mayor Herbert Bautista will lead city officials in the signing of a memorandum of agreement with BSP officials on Monday at the BSP main office in Manila, according to a press statement.
Participating cooperatives and nongovernment organizations contributed to the fund and the Quezon City government committed P5 million as counterpart contribution.
BSP’s partner institutions (Development Bank of the Philippines, Land Bank of the Philippines and Industrial Guarantee and Loan Fund) will also contribute to the Quezon City fund.
Initial total commitment is expected to reach P20 million.
The Quezon City Credit Surety Fund was established through a resolution introduced by Councilors Jose Visaya and Marivic Co-Pilar. The resolution said the program will generate higher income for cooperative members and facilitate creation of employment opportunities for city residents.
MSMEs must be a member of the contributing cooperatives or NGOs to apply for a loan under the credit surety fund. Erika Sauler