Amando M Tetangco, Jr: The Credit Surety Fund - sustaining economic
growth through increased credit flows
Speech by Mr Amando M Tetangco, Jr, Governor of the Central Bank of the Philippines
(Bangko Sentral ng Pilipinas), at the Launching of the Credit Surety Fund Program, Trece
Martirez City, Cavite, 27 August 2008.
* * *
Governor Ayong Maliksi, distinguished Board Members of the Sangunihang Panlalawigan ng
Cavite and other officials from Cavite's local government units - mga Mayors at Vice Mayors,
officers and members of Cavite's cooperatives, our partners from the Micro, Small, and
Medium Enterprises Sector or what we call MSMEs, representatives from the Industrial
Guarantee Loan Fund, representatives from the banking sector, fellow workers in
government, special guests.
Magandang umaga po sa inyong lahat! Kami po sa Bangko Sentral ng Pilipinas ay natutuwa
dahil ngayon ang panimula ng isang mahalagang programa na tinatawag nating Credit
Surety Fund. At dahil mahalaga ito, karamihan sa mga opisyal ng Bangko Sentral ay
nandirito ngayon.
Ipakikilala ko po sila, umpisa sa mga miyembro ng ating Monetary Board: Kasama po natin si
Monetary Board Member Alfredo Antonio, dating Chairman ng Development Bank of the
Philippines; at si Monetary Board Member Ignacio Bunye, dating Press Secretary at
Presidential Spokesman.
Kasama ko rin po ang management team ng Bangko Sentral, kabilang si Deputy Governor
Diwa Guinigundo, si Assistant Governor & General Counsel Juan de Zuñiga, Jr., at si
Assistant Governor Rene Carreon, at iba pang mga opisyal ng BSP.
The level of our participation in this event speaks volumes about the way we at the Bangko
Sentral ng Pilipinas value our MSMEs. The MSME sector represents the backbone of our
economy as 99 per cent of registered firms belong to this sector. A recent report of the
International Finance Corporation of the World Bank Group indicated that loans to MSMEs
comprise twenty-five percent (25%) of the total loans of the banking system. Malaking bahagi
po ito ng pautang ng ating mga bangko. Kaya masasabi natin na mahalaga rin ang MSMEs
sa banking sector.
Kaya lamang, kulang pa rin ito sa tutuong panga-ngailangan ng ating MSMEs. Estimates
indicate that roughly 60% of the credit needs of MSMEs remain unserved.
Simple ang dahilan nito: Marami sa ating MSME's ay walang collateral na maiharap para
maka-utang sa mga bangko, maliban sa kanilang proven track record as successful and
responsible small entrepreneurs. Dito po pumapasok ang Bangko Sentral at ang Credit
Surety Fund. Sa ilalim po ng Credit Surety Fund Program ay mapapabilis ang pagbibigay ng
pautang sa ating mga MSMEs dahilan sa pag-tutulungan ng LGUs led here in Cavite by
Governor Ayong Maliksi, ng ating mga kooperatiba, at ng IGLF na itatag ang Credit Surety
Fund. With this as underlying surety, MSME entrepreneurs without collateral can now borrow
from the banks.
This program therefore directly addresses the MSME's lack of collaterals. In other words, the
program will democratize access to bank credit and help level the playing field for our
MSMEs. Ito pong Credit Surety Fund ang magiging susi ng ating MSMEs para maka-utang
sa mga bangko.
At the heart of this program is the spirit of "BAYANIHAN". To our mind, the foundation and
success of the program will depend ultimately on the cooperation and collaboration of all the
participants in this multi-sectoral program: the national government through IGLF, the local
government led by its Governor, MSMEs under the cooperatives, the banks that will provide
the loans, and the Bangko Sentral which will provide rediscounting for up to 80% for the
MSME loans.
Later, we shall have an audio-visual presentation that will explain the rationale, the process,
and the objectives of this important public-private sector collaboration.
Sa ngalan po ng Bangko Sentral, binabati po namin ang lalawigan ng Cavite sa pamumuno
ni Gobernor Ayong Maliksi (talaga pong magaling at maliksi ang inyong gobernador!) dahil
kayo po ang first province na nag-launch ng groundbreaking program na ito.
Kaya po mahalaga ang inyong malakas na suporta sa credit surety fund program at sa
pagtatayo ng Cavite Coopreneurs Surety Fund. Your pioneering efforts to implement the
program will be the challenge to other provinces in the Philippines for them to establish their
very own surety fund.
On the part of the BSP, you can be assured that we will continue to advocate and make
room for future innovations that will further benefit our entrepreneurs and help uplift the lives
of our people.
Sana po ay magka-isa tayo sa pag-sulong ng ating bansa sa pamamagitan ng ating credit
surety fund program.
Mabuhay ang Cavite! Mabuhay ang ating bansang Pilipinas!
Maraming salamat po sa inyong lahat.