Virac, Catanduanes — In a significant step toward enhancing access to credit for cooperatives and micro, small, and medium enterprises (MSMEs), the Cooperative Development Authority (CDA) Region V, in partnership with Bangko Sentral ng Pilipinas, conducted a Credit Surety Fund (CSF) Roadshow and Contributors’ Orientation Seminar in the province last October 16, 2025 at Rhaj Inn, Gogon, Virac, Catanduanes.

Held with the support of the Provincial Government of Catanduanes, the event gathered Eighty-Two (82) participants composed of cooperative leaders, and representatives from the Provincial Government of Catanduanes. The seminar was graced by Mr. Crispin S. Lopez, Chairman of Provincial Cooperative Development Council, who emphasized the vital role of cooperatives in driving local economic development and the importance of expanding financial access in the province. Following his address, Atty. Emilio D. Escueta III, Regional Director of Cooperative Development Authority-Region V, though not physically present due to equally important commitment, was still able to extend his message of support which was delivered on his behalf by Lady Lorebeh S. Bernal, CSF-Section. In his message, Atty. Escueta III reaffirmed the Agency’s continuous efforts to strengthen partnerships among cooperatives and local government units.

He also stressed the significance of establishing Credit Surety Fund (CSF) Cooperatives as a mechanism to enhance credit accessibility for micro, small, and medium enterprises (MSMEs), thereby fostering sustainable local economic development.

The activity featured two key resource speakers: Ms. Jashzeel F. Baldonado from the Bangko Sentral ng Pilipinas and Mr. Recto Transfiguracion, Chief of CSF- Technical Assistance Division.

Building Financial Inclusion through Credit Surety

In her presentation titled “Credit Surety Fund: Sustaining Economic Growth through Increased Credit Flows,” Ms. Baldonado introduced the CSF mechanism as an innovative solution to the perennial challenge of limited access to credit, especially for MSMEs and cooperatives that often lack hard collateral. She explained how the CSF allows qualified borrowers to secure loans from banks by substituting surety cover in place of traditional collateral—an initiative that aligns with the BSP’s broader financial inclusion strategy.

Ms. Baldonado also shared insights into the structure of CSF cooperatives, the role of contributors, and successful implementation stories from other provinces. Her presentation highlighted how properly managed CSF cooperatives could become engines of economic growth in underserved areas like Catanduanes.

CDA’s Support and Registration Guidelines

Meanwhile, Mr. Recto Transfiguracion provided a comprehensive discussion on CDA’s initiatives, partnerships, and the documentary requirements for the registration of CSF cooperatives. His session guided participants through the legal framework under Republic Act No. 10744 (The CSF Cooperative Act of 2015), including the step-by-step process for registering a CSF cooperative.

He outlined the roles of founding members, required documents, and the responsibilities of contributors. Mr. Transfiguracion also emphasized the importance of sound governance, financial discipline, and continued partnership with the Local Government Unit to ensure the sustainability of the CSF cooperative.

Open Forum and Key Takeaways

During the open forum, participants actively engaged with the speakers, raising practical questions about the financial risks involved, operational models, and the timeline for organizing a CSF in Catanduanes. The forum served as a platform to address concerns and clarify how primary cooperatives and LGUs could collaborate as contributors to a newly formed CSF Cooperative.

The event concluded with expressions of interest from several cooperatives and LGU representatives who are eager to take the next steps toward forming the province’s first CSF cooperative. CDA Region V committed to providing continuous technical assistance and coaching to those ready to undergo the registration process. Moving forward, the CSF Roadshow in Catanduanes marks a critical milestone in the province’s journey toward inclusive financing and cooperative empowerment. By introducing the Credit Surety Fund to local stakeholders, CDA and BSP have laid the groundwork for a more resilient, credit-enabled cooperative sector.

With strong support from the Provincial Government of Catanduanes and the commitment of cooperatives on the ground, Catanduanes is well-positioned to become a model for CSF implementation in Region V. The establishment of a CSF cooperative in the province not only promises to unlock access to financing for local enterprises—it also underscores the power of partnership in driving sustainable development.