State-guaranteed loans in the agricultural sector reached 3.5 billion pesos in the first half of the year, approaching the Philippine Guarantee Corp. target of 3.7 billion pesos. (PhilGuarantee) for the whole year.
PhilGuarantee President and CEO Alberto E. Pascual said loans guaranteed by the company’s partner credit institutions have benefited 35,360 small farmers and fishermen.
The crops sub-sector accounted for the bulk of guaranteed loans to the agricultural sector, with 3.35 billion pesos or 96 percent covered over the period January to June 2021, Pascual said in a report to the finance ministry ( DOF).
Pascual said that for the second quarter of the year, loans guaranteed to the agricultural sector by 47 partner credit institutions (IPP) have already reached 3.499 billion pesos, which is already 95 percent of the target of 3.675 billion. of pesos for 2021, benefiting 35,360 small farmers and fishermen. He added that the outstanding balance as of June 30 stood at 1.247 billion pesos.
The livestock sub-sector came in second, with borrowing in June of this year amounting to 112.63 million pesos, followed by fishing with 27.86 million pesos and poultry with 12.63 million pesos. , 03 million pesos.
“Since the start of the Covid-19 crisis in March 2020, PhilGuarantee has wasted no time in fulfilling its mandate and responding to the government’s call to come to the aid of affected agricultural workers through its guarantee, ”said Pascual. .
As administrator of the Agricultural Guarantee Fund Pool (AGFP), PhilGuarantee encourages its LIPs to lend to smallholder farmers and fishermen or their organizations, providing guarantee coverage to their unsecured agricultural production loans.
Last year, PhilGuarantee’s approved guarantee lines to 41 PLIs providing loans to the agricultural sector amounted to 5.14 billion pesos, with guaranteed loans totaling 4.25 billion pesos.
“This amount exceeds our goal of 3.5 billion pesos by 21.4% and has helped 48,038 small farmers and fishermen nationwide. The outstanding balance as of December 31, 2020 was 401.5 million pesos, ”said Pascual.
During the period of enhanced community quarantine last year, Pascual said the board of directors of PhilGuarantee approved the reduction in the warranty fee rate from 1% to 0.5% and the increase in coverage. from 85% to 90% collateral of the loan amount for payment. borrowing from farmers through AGFP. These measures were in effect from April 15 to July 15, 2020.