PHILDEVFINANCE (old news): Micro Financing for Land Reform Beneficiaries Set

Micro Financing for Land Reform Beneficiaries Set

October 13, 2010, 6:37pm

MANILA, Philippines – The Department of Agrarian Reform (DAR) has forged a partnership with the Center for Agricultural and Rural Development (CARD) to provide credit to farmer-beneficiaries.

DAR Secretary Virgilio de los Reyes said the project, called “DAR-CARD Microfinance Capacity Development Program,” is a three-year project that seeks to extend loans to agrarian reform beneficiaries (ARBs).

De los Reyes said CARD will also work with DAR in training co-op members to ensure better performance in managing their business ventures and to avoid, if not limit, delinquency or even default on their payments.

“The program aims to develop small farmers’ cooperatives into successful microfinance service providers in their areas,” De los Reyes said.

The DAR, through the Bureau of Agrarian Reform Beneficiaries Development, aims to bolster its credit program through partnership with various microfinance institutions like CARD.

BARBD Director Elena Cabanes said the program is expected to serve at least 18,000 active ARB borrowers and depositors, extend loan amounting to more than P27 million and generate savings and share capital of more than P13 million.

She added that the program covers 12 cooperatives, which include among others the Kaunayan Multi-Purpose Cooperative in Pagudpud, Ilocos Norte; Sirmata MPC in San Ildefonso, Ilocos Sur; Villaluna MPC in Cauayan City, Isabela: and Kalipunan ng Maliliit na Magniniyog ng Napan, Malay, Aklan.

Other targeted cooperatives are San Julian MPC in Badiangan, Iloilo; Panubigan Community MPC in Canlaon City, Negros Oraiental; Mayaposi Small Farmers MPC in Mabina, Negros Oriental; Sibula Farmers’ MPC in Lopez Jaena, Misamis Occidental while three others are to be identified in Cagyan, Agusan del Sur and Surigao del Norte.

Cabanes explained that their cooperatives must have at least 100 members, their livelihood and enterprise potential high, and have no existing contracts with other microfinance institutions.

She added that participating co-op members must save P50 weekly to be deposited in their savings accounts. All money borrowed and deposited through the program are covered by CARD’s insurance.

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Friday, November 19, 2010

Micro Financing for Land Reform Beneficiaries Set