Coop received P1Million Loan assistance through DavOr REACH Surety Fund

CREDIT SURETY

Province of Davao Oriental – The Yagakauyon na Kooperatiba ng San Ignacio (YaKoSI) received one million pesos loan assistance from the Development Bank of the Philippines released through the Davao Oriental Reach Surety Fund (DORSF).

A member of the DORSF, YaKoSI cooperative operating in Manay town of this province received the check on March 20, 2015 at Provincial Capitol in the City of Mati.

Coop officials said they would use the funds to embark on a lending business and to finance its members’ venture on micro, medium and small enterprises (MSMEs).

During the ceremonial turn over of the check, Governor Corazon N. Malanyaon vowed to earmark P 250,000.00 fund to support some DORSF member-cooperative that requires much-needed assistance due to the devastation of Typhoon Pablo in 2012 and LPA Agaton in 2014. She said this fund will ensure their fast recovery after being hit by disasters.

Started in 2009, the DORSF was launched under Bangko Sentral ng Pilipinas’ (BSP) Credit Surety Fund Program aimed to become a catalyst towards development of dynamic MSMEs in the province. The program is supported by Development Bank of the Philippines, Land Bank of the Philippines and the Industrial Guarantee and Loan Fund with pledges of contributions to augment the fund.

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Governor Corazon N. Malanyaon

Specifically, through the Provincial Cooperative and Development Office, the Surety Fund also facilitates provision of credit to cooperative members and participating MSMEs. It also provides check and balance mechanisms for optimum utilization of credits resources with highest degree of integrity and efficiency.

The BSP’s Credit Surety Fund is a pro-active approach in supporting MSMEs who often find themselves hard pressed for loans from financial institutions due to lack of collateral, unstable income, lack of business experience, and low paying capacity.

Under the program, a fund will be created from contributions of well-capitalized and well-managed cooperatives with a counterpart contribution from the provincial government. The fund will provide surety cover, in place of collateral, to guarantee bank loans of MSMEs.

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Pacifico Castillones, Jr., Provincial Cooperative and Development Office Head

In pushing for the program, Governor Malanyaon told poor constituents that the credit program will make MSMEs bankable. She also believed that the program will create job opportunities and increases the poor people’s income.

During its inception, eleven cooperatives initially joined the DORSF who agreed to shell out contributions. Seeing its accomplishments in uplifting the small cooperatives and entrepreneurs, more cooperatives, mostly farmers’ guild, have expressed to join the credit program with low-interest and no collateral loans. They said the benefits posed by this government credit program are simply irresistible to them as it will surely boost the cooperatives’ operations especially their personal finances. By Van Jorain O. Rufin

 

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