Bangko Sentra ng Pilipinas (BSP)- the central bank of the Philippines- has launched the Credit Surety Fund in several regions of the country. The fund’s primary purpose is to make micro, small, and medium sized entrepreneurs (MSMEs) bankable by giving them access to finance. The creation of the fund is being praised as a step in the right direction for MSMEs in the country but there is still plenty to be done to further microfinance in the country.
BSP Deputy Governor Nestor Espenilla Jr. stated that a majority the micro-businesses tend to be focused on crafts that are difficult to expand and produce little wealth for their owners. However, it appears that the BSP is taking all the right steps to make the CSF- and microfinance in the country- a success.
Financial learning seminars- sponsored by the BSP- aim to rectify this problem- focusing on how to run and manage a small business, how to build it so that it can grow, and how to avoid falling victim to fraud or bad business deals. The new fund, coupled with financial education, is a great impetus for the Philippines to develop a successful microfinance industry and help alleviate domestic poverty.
For the BSP official press release, or for more information, click here.