Davao del Norte Credit Surety Fund totals P11.7-Million

The figure was given. Davao del Norte would have as much as P11.7-million to mobilize its Credit Surety Fund (CSF) program this year for MSMEs.
Rosalinda Dumaliang, Bangko Sentral ng Pilipinas (BSP) Department of Loans and Credit Director, disclosed the said amount in her message delivered by her representative, BSP Department of Loans and Credit Manager Louella Leones, during the most recent convocation program held in Bulwagan, Government Center , Tagum City .
Dumaliang gave details as to the sources of the fund. She said that “the Provincial Government’s contribution of P1-M which will be increased upto P3.5-M this year, the Development Bank of the Philippines’ (DBP) P1-M and Landbank of the Philippines’ (LBP) P3-M plus the industrial guarantee and loan contribution of over P3-M which will be released this February will bring the Davao del Norte Credit Surety fund’s total to P11,711,000.”
Dumaliang, who was the guest speaker, reiterated in her message the need to help our Micro, Small and Medium Entrepreneurs (MSMEs).
“The MSMEs sector is considered as the backbone of Philippine economy,” said Dumaliang.
In a DTI report she quoted, 721,000 or 99.6 percent of the registered establishments nationwide are small-scale and are employing 70 percent of the total workforce but they are only contributing 32 percent of the gross domestic product.
“One of the reasons cited by the DTI was that the MSMEs have a difficulty in getting funds to finance their working capital requirement due to lack of acceptable collaterals,” she said.
“This Credit Surety Fund that we put up serves as a safety valve that guarantees mainstream financial institutions of a return of investment, hence, MSME borrowers need not be limited in their access to the money market,” said Governor Rodolfo del Rosario. “By doing away with collaterals, we begin to trust more our MSMEs that through their competitiveness, they can generate incomes to pay their loans,” he added with emphasis on the convocation’s theme, “Empowering MSMEs to Propel Economic Gains thru Credit Enhancement Program.”
The convocation was sponsored by the so-called mega division of the Provincial Government which is the Cooperative, Business Enterprise & Manpower Development Division headed by Engr. Humber Cabunoc.