The Bangko Sentral ng Pilipinas wants lending to micro enterprises to grow by nearly 10 times, hitting the P1-billion mark by the end of 2012.
According to BSP Deputy Governor Diwa Guinigundo, the central bank is now pushing micro financing through the establishment of more credit surety funds (CSFs) all over the country.
CSF is a pool of money contributed by government-owned banks, local government units, and cooperatives, which will serve as collateral for loans being sought by micro enterprises.
The BSP has taken the lead in organizing concerned units for the establishment of CSFs in various areas.
CSFs are supposed to make it easier for micro enterprises to tap loans from banks, which normally require huge collateral before lending.
Without CSFs, it will be difficult for small traders to borrow from banks because they often lack sufficient assets that may serve as collateral.
Currently, there are 16 CSFs in various provinces in the country. The BSP is preparing for the establishment of another CSF in Benguet by August, Guinigundo yesterday told reporters.
He added that over the next year and a half, the BSP would push for and work on the creation of more CSFs to be able to achieve its goal of lending P1-billion to micro enterprises, aided by CSFs, by the end of 2012.
Data from the central bank showed that, so far, the amount of loans lent by banks, and aided by CSFs, reached P106 billion.
Guinigundo said the CSF program of the central bank is anchored on the belief in the significant role played by micro enterprises in the growth of the economy.
Guinigundo said that so far, there has been no loan default udner the CSF program.