
On March 3, 2024, the Cooperative Development Authority (CDA) conducted a virtual meeting to introduce the Enhanced Loan Program of the Land Bank of the Philippines (LBP), specially designed for Credit Surety Fund (CSF) Cooperatives. This innovative financing initiative is the result of a series of collaborative meetings and exploratory dialogues between CDA and LBP, reflecting their shared commitment to expand access to credit for members of CSF Cooperatives and their MSME members.
The presentation served as a platform to highlight the program’s enhanced features, strategic objectives, and operational improvements while fostering active discussions, gathering feedback, and aligning partnership goals among stakeholders.
The presentation was spearheaded by Mr. Cris Pernito, Head of the Development Assistance Department (DAD) of LBP Head Office, together with Mr. Kharl Eves Carpina. Program Officer of DAD. Officers and members of CSF Cooperatives, heads and account officers of LBP Lending Centers, and personnel of Credit Surety Fund Service and Sections attended this.
The key features of the enhanced program include, among others:
- Real Estate Mortgage or Chattel Mortgage shall generally not be required
- Interest spread reduction of up to 1.00% per annum across all adjectival credit ratings
- Provision of comprehensive training programs to enhance the financial literacy and credit management of officers and members of CSF Cooperatives
In her message, Asec. Luz H. Yringco, Head of the Finance Cooperative Cluster, lauded the enhanced program as a timely and meaningful intervention, especially as the cooperative sector celebrates the International Year of Cooperatives, reinforcing the role of cooperatives in building a better world. She commended LBP for heeding the call of the cooperative sector, marking this initiative as a testament to the growing synergy between the banking sector and the cooperative movement.
CDA Administrator Asec. Santiago S. Lim described the enhanced lending program as a milestone in the country’s financial inclusion efforts. He underscored that the CSF program is a vital tool in empowering MSMEs, enabling them to gain access to much-needed credit through the collective strength of partners, ultimately bridging the financing gap between formal financial institutions and underserved communities.
In her closing remarks, Atty. Elizabeth O. Batonan, Deputy Administrator of CSF Service expressed the CDA’s profound gratitude to LBP for its steadfast commitment to the CSF Program. While acknowledging that the enhanced program may not fully address all concerns of CSF Cooperatives, she emphasized that it serves as a significant step forward in enhancing CSF Cooperatives’ operations, strengthening their financial capacity, and solidifying their role as preferred credit institutions for cooperatives and MSMEs.
The unveiling of the Enhanced LBP Loan Program reaffirms the enduring partnership between CDA and LBP. This collaboration is expected to advance financial inclusion and foster more sustainable and resilient CSF Cooperatives.
