BANGKO Sentral ng Pilipinas will resume the creation of credit surety fund facilities after suspending their establishment a few months before the national elections in May to spare them from politics.
Bangko Sentral Deputy Governor Diwa Guinigundo said at least two more of these facilities would be put up in Luzon, bringing the total to 47 by the end of the year.
“Maybe one or two. This is an election year and we suspended them because we did not want them to be used by politicians,” Guinigundo said.
CSF is a fund generated by the pooling of contributions of well-capitalized and well-managed cooperatives and non-government organizations, local government units and partner institutions, such as the Industrial Guarantee and Loan Fund, Development Bank of the Philippines and Land Bank of the Philippines.
The facility increases small firms’ bankability and creditworthiness by serving as substitute to hard collaterals.
