Micro, Small and Medium Enterprises (MSMEs) now have stronger support from the government following the signing of the Implementing Rules and Regulation (IRR) for Republic Act (RA) 10744, otherwise known as the Credit Surety Fund Cooperative Act of 2015, Tuesday.
There are currently 46 credit surety funds (CSFs) in the country after the Bangko Sentral ng Pilipinas spearheaded the opening of the first CSF in Cavite in 2008.
BSP Governor Amando M. Tetangco Jr., in his speech during the IRR signing at the central bank office in Manila, said they target to open six more CSFs this year, one of which has been opened in La Union last June 19.
“This milestone attests to the power of partnerships among agencies to pursue development objectives…to foster the organization of credit surety fund cooperatives, to manage and administer surety funds that will enhance access to credit for MSMEs and NGOs,” he said.
The IRR, signed by Tetangco and CDA chairman Orlando R. Ravanera, was drafted by a team from the BSP, the Department of Finance (DOF), Cooperative Development Authority (CDA), Development Bank of the Philippines (DBP) and Land Bank of the Philippines (Landbank).
Tetangco said the team conducted 14 public hearings in 11 cities during the formulation of the IRR to ensure transparency, among others.
He said CSFs provided a reliable platform for the unbanked and underbanked MSMEs as these provided access to financing that these sectors cannot tap sans the CSFs.
MSMEs account for about 99.6 percent of registered firms nationwide and employs around 63.2 percent of total workforce in the country.(PNA)