GFSME Programs 

• Guarantee for Agricultural Investments (GAIN) - provides guarantees to agri-business loans usually medium to long term. This was the first facility designed to support small and medium enterprises engaged in agricultural projects.

• Guarantee Opportunities for Light Industries (GOLD) - provides guarantees for enterprises in manufacturing and services sectors except housing, motel operations and trading. GOLD was launched in 1991 and has become the Fund's best-selling product line accounting for half of cumulative originations.

• Provincial Enterprises Financial Enhancement Through Credit Technologies (PERFECT) - institutionalizes a risk sharing concept between the local government units (LGUs) and the GFSME whereby a GFSME accredited institution may apply for 100% guarantee cover for projects identified as priority by the LGU. Through PERFECT, the GFSME is able to transfer the technology of credit supplementation to LGUs and likewise enable LGUs to influence and effect a private sector investment led development in their localities beyond their financial resources.

• Guarantee Undertakings of Industries in Livelihood Development (GUILD) - This program privatizes the guarantee system through the organization of mutual guarantee associations (MGA) in partnerships with industry and trade associations, cooperatives, or non-government organizations. Under the program, the MGA puts up a guarantee fund which will be matched four times by the GFSME. This fund will be used to guarantee loans availed by members of the MGA from an accredited partner bank. The program will have a technology transfer component which will enable the MGA to build up capability to manage the guarantee fund. The ultimate goal of the program is to grow the guarantee fund of the MGA, and for it to be self-sustaining.

• Guarantee for Intermediary Micro Financing Technologies (GIFT) - Provides guarantees to loans of micro financing institutions (MFIs) from accredited banks for implementation of financing programs which will benefit micro enterprises engaged in any type of legitimate livelihood activities. It adopts the intermediary approach where bank funding is directed to the MFI operating the financing program in the area assisted.

• Makamasang Agrikultura Guarantee Facility for High Value Crops (MAKAMASA) - Provides guarantees to small scale farmers or farm cooperatives. This facility is made possible through a P100 million loan from the Agricultural Credit Policy Council (ACPC), Department of Agriculture.

• Liquidity – Apart from the guarantee, another mechanism which accredited banks have availed of is the take out or liquidity mechanism. Qualified for take-out are accounts originated by accredited rural/development/thrift banks and cooperatives/NGOs. Lending institutions which grant loans under our prescribed fixed rates are eligible to liquefy these loans with the GFSME. This facility is available only to fixed rate clients considered as small scale accounts (up to a maximum of P 4 Million). As of 1999, we have honored take outs valued at an aggregate of P 286.125 M for approximately 166 accounts. Whenever banks have need of liquidity, GFSME commits to liquefy.

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