TUESDAY, 27 SEPTEMBER 2011 18:38 JENNIFER A. NG / REPORTER
ELIGIBLE small farmers and fishers will now be able to avail themselves
of loans for either agricultural production or microfinance that carry
an annual interest rate of 15 percent.
The Agricultural Credit Policy Council (ACPC) said this is now possible
after it approved the implementation of the depository mode scheme of
the Agro-Industry Modernization Credit and Financing Program-Cooperative
Banks Agri-Lending Program.
According to ACPC Executive Director Jovita M. Corpuz, they were able to
eliminate one layer in the current wholesaler-retailer scheme, which
allowed the attached agency of the Department of Agriculture (DA) to
further lower the interest rates.
"The depository mode scheme offers a pass-on rate to borrowers at a
maximum of 15 percent per annum. This is much lower than the interest
rates offered in our other programs," Corpuz said in a statement.
Under the depository mode scheme, she said eligible cooperative banks
will be given a stable, low-cost funding support, in the form of special
time deposits, which will have a one-year maturity with a maximum
interest of 3 percent per year.
"The earnings from these special time deposits can be used to finance
loans for small farmers and fisherfolk, in addition to the banks'
existing appropriate and incremental agricultural loan portfolio,"
Corpuz said.
Corpuz also said should there be any "material adverse change" in the
financial condition or in the regulatory assessment of the cooperative
bank, the special time deposit is "due and demandable at any time."
As part of the guidelines, participating cooperative banks must also
disburse the proceeds of the special time deposits to eligible
farmers/fisherfolk borrowers within 90 days from the receipt of the deposit.
An initial fund of P400 million has been allocated for the program,
which will be implemented in areas where participating cooperative banks
operate. Rice, corn, fishery and other high-value crops prioritized by
the DA will be financed under the program.
The ACPC is composed of the chiefs of the Departments of Agriculture,
Finance and Budget and Management, the Bangko Sentral ng Pilipinas and
the National Economic and Development Authority.
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