Central bank opens credit facility for SMEs in Batangas
Batangueño start-ups now have a new borrowing platform.
The Bangko Sentral ng Pilipinas (BSP) has opened a credit surety facility (CSF) in Batangas, teaming up with Governor Hermilando Mandanas to open the new borrowing platform for local businessmen.
Under the facility, small and medium enterprises (SMEs) in the province can join the local cooperative and pool their funds together. The provincial government and the Development Bank of the Philippines, Land Bank of the Philippines and Industrial Guarantee and Loan Fund will then put additional funds in the cooperative.
Some 21 firms contributed P3.35 million to the fund, which was matched by the Batangas Provincial Government with a P5-million pledge.
The CSF cooperative will then stand to guarantee bank loans sought by member-SMEs, effectively raising their chances to borrow money.
Batangas is the 51st site of the credit surety fund in the country.