DAVAO CITY -- Planters Development Bank (Plantersbank) and state-run
Philippine Export-Import Credit Agency (Philexim) have rolled out an
initial P2.5-billion special loan window tailor-fitted to the
requirements of Mindanao's banana growers.
Gerardo V. Munda, Plantersbank vice-president for the VisMin Lending
Department, said a loan applicant may borrow as low as P1 million to as
much as P50 million under the program.
But there are special cases, he said, when applications over the maximum
cap may also be approved. Philexim, which serves as guarantor, will
cover 90% in case of losses, he said.
"We will do company calls so [growers] know about the program," he said.
Both Plantersbank and Philexim would also solicit suggestions from
banana companies, particularly those belonging to the Pilipino Banana
Growers and Exporters Association (PBGEA), on how to fine-tune the
program to get the desired results.
Stephen A. Antig, PBGEA executive director, said it would be helpful for
banana growers if both Plantersbank and Philexim allow restructuring to
cover losses from natural disasters.
"We need insurance protection for the crops because in case of
disasters, we have difficulty collecting from the growers," he said.
Mr. Antig said the growers apply for refinancing and spend millions to
rehabilitate the farms but floods or intense drought could wreak havoc
on the industry like what happened during the El Niño phenomenon in the
first quarter of 2010 when 18,000 hectares, out of over 50,000 hectares,
of banana plantations sustained damage.
Data from the association revealed that around 240,000 workers are
dependent on the local banana industry, which generates $720 million in
export receipts. Banana is the second biggest export product of
Mindanao, after coconut, and is the fifth largest in the country.
Mr. Antig said the banana industry contributes nearly a quarter of the
country's total agricultural exports. The Philippines, meanwhile, only
trails Ecuador in terms of banana exports and is the only Asian country
to land among the top five, which are dominated by South American
countries like Colombia, Costa Rica and Guatemala. -- Joel B. Escovilla
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