QUEZON CITY, Oct. 6 — The Department of Agriculture (DA) together with Agricultural Credit Policy Council (ACPC), has turned over a total of P300 million to partner cooperative banks for the implementation of the Agriculture and Fisheries Financing Program–Cooperative Banks Agri-Lending Program II (CBAP II).
The check turn-over ceremony was held recently at the ACPC Conference Room in Pasig City.
Agriculture Secretary Proceso Alcala signed the implementing guidelines of the Agriculture and Fisheries Financing Program (AFFP), of which the CBAP II is one of the credit facilities. The AFFP is one of the programs under the Agro-Industry Modernization Credit and Financing Program (AMCFP), the umbrella credit program of the DA for agriculture and fisheries.
The AFFP was approved by the ACPC Governing Council through Resolution No. 1, Series of 2015. The ACPC Governing Council’s approval of the AFFP underscores the importance of putting in place a viable agricultural value-chain financing model that can be adopted by mainstream financing institutions. The goal of the AMCFP-AFFP is to contribute to the attainment of inclusive growth through financial inclusion of the unbanked and underbanked sectors in agriculture.
The AFFP-CBAP II is the successor of the Cooperative Banks Agri-Lending Program, which was launched in 2011. CBAP is an innovation in credit delivery which employs a depository mode of credit delivery wherein special time deposits (STDs) are placed directly in partner cooperative banks, eliminating the need for a wholesaler and resulting in lower interest rates to small farmers and fisher folk.
The Cooperative Banks Agri-Lending Program (CBAP) – II entails the extension of loans to eligible cooperative banks that shall, in turn, lend to small farmers and fisher folk registered in the Registry System for Basic Sectors in Agriculture (RSBSA) at full credit risk using their existing workable agricultural loan products.
The loan fund shall be matched by eligible cooperative banks with their own counterpart funds equivalent to at least the amount of loan fund availed for lending to individual SFF. The scheme would enable the cooperative banks not only to expand further their agri-fishery loan portfolio but also lower pass-on rates to small farmers and fisherfolk borrowers.
With improved credit access, the program hopes to enhance farmers’ production capacities, productivity, and incomes. The program is also intended to contribute to the national government’s goal of promoting inclusive growth.
Under the CBAP II Program, 13 cooperative banks were provided with loan funds. These include: First Isabela Cooperative Bank; Cooperative Bank of Cotabato; Cooperative Bank of Misamis Oriental; Bukidnon Cooperative Bank; Ilocos Sur Cooperative Bank; Cooperative Bank of Ilocos Norte; Cooperative Bank of Bohol; Cooperative Bank of Nueva Vizcaya; Cooperative Bank of Quezon Province; Cooperative Bank of Negros Oriental; Cooperative Bank of La Union; Negros Cooperative Bank; and Occidental Mindoro Cooperative Bank with P10 million each.
The CBAP II will be implemented within a period of one year. (DA)
– See more at: http://news.pia.gov.ph/article/view/3001444033924/da-gives-p300-m-to-banks-for-agriculture-fisheries-financing-program#sthash.m8DWdzWz.dpuf
