With the passage of R.A. No. 10744, otherwise known as the Credit Surety Fund Cooperative Act of 2015, the Credit Surety Fund Program initiated by the Bangko Sentral ng Pilipinas (BSP) in 2008 has been institutionalized. Essentially, the said law provides for the creation and organization of the Credit Surety Fund (CSF) cooperatives to manage and administer credit surety funds and to enhance the accessibility of micro, small, and medium-sized enterprises (MSMEs); cooperatives; and nongovernment organizations (NGOs) to bank credit facilities.
The law also grants juridical personality to a CSF that will be registered as a CSF Cooperative with the CDA, thus, laying to rest the major challenge hounding the CSF which is the lack of legal personality. Moreover, CSF Cooperatives enjoy tax exemption privileges and capability enhancement programs following their registration as such.
Recognizing the noble intention and the benefits that the law offers to prospective CSF Cooperatives, all existing CSFs launched by the BSP nationwide since 2008 to 2019 which are deemed eligible to register as CSF Cooperatives under the law, but have not yet registered as such CSF Cooperatives with the CDA, are highly encouraged to register until September 30, 2020. Said scheduled deadline will be strictly enforced.
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