DBP promotes growth thru microfinance
By Manila Standard Today | Posted on August 19, 2012
The Development Bank of the Philippines (DBP) has stepped up its efforts
to promote the growth of micro, small and medium enterprises through its
participation to the Credit Surety Fund (CSF) program of the Bangko
Sentral ng Pilipinas. DBP was the first financial institution to support
the CSF program as a contributor to the fund, trustee bank, and lender
to the participating cooperatives and its qualified MSME members.
Launched in 2008, the CSF is a credit enhancement scheme that
allows-member cooperatives and its member-MSMEs to borrow from banks
through a joint letter of surety coverage issued by the CSF oversight
committee in lieu of hard collateral. In December 2009, DBP
institutionalized its CSF Credit Facility to give credit assistance to
CSF member-cooperatives and individual MSMEs who belong to members of
CSF member-cooperatives.
DBP president and chief executive Francisco Del Rosario Jr. said that as
of June 2012, the bank has approved contributions to 29 credit surety
funds established in various parts of the country. DBP is supporting 344
cooperatives and non-government organizations through its contributions
to the 25 credit surety funds. He added that DBP has approved
P42.05-million in contributions to the credit surety funds, and has
released P24.7-million to date.
"DBP has released P93.18-million in loans to MSMEs under the CSF Credit
Facility, with loan approvals amounting to P152.48-million," Del Rosario
added. The bank also has P61.756-million in loans in the pipeline for 13
borrowers under the said facility.
SEED Program
The CSF Credit Facility is one of the numerous initiatives integrated
under DBP's umbrella program for MSMES — the Sustainable
Entrepreneurship and Enhancement Development (SEED) program. This
program aims to improve the access of MSMEs to DBP's credit facilities
and fast-track the credit application process. Through the program, DBP
brings SMEs to the mainstream of banking by implementing alternative
ways for securing MSME loans and maximizing its lending reach.
Credit programs under the SEED include the Organic Agriculture program,
High Value Crops Financing program, Cleaner Public Transportation
program, Venture Capital program and the One Town, One Product credit
program.
Agricultural Microfinance
DBP has also opened its Agricultural Credit Policy Council-DBP
Cooperative Agricultural Lending Program Facility (CALP) that funds
stable cooperative banks and cooperatives extending agricultural
microfinance loans to small farmers and fisherfolk.
With an initial funding allocation of P200-million, the CALP will
support the production of crops, livestock, poultry and fisheries. It
will also fund on-farm or off-farm activities of agricultural households
using the household cash flow lending approach.
On its 65th year, DBP commits itself to continue promoting the growth of
micro, small and medium enterprises through sustainable and high-impact
programs that will help create employment and income opportunities for
the enterprising Filipino.
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CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
My News Clippings - http://www.myclipps.posterous.com
Skype name: carlosaniph
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