THE government has opened an additional P34-million loan facility for farmers after two state-run financial institutions reduced their fee for managing the loan funds of the Department of Agriculture (DA) by 1-percentage point.
The DA said in a statement that the Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP) have heeded the call of President Duterte to make credit affordable to small farmers.
The board of directors of LandBank and the DBP cut their management fee for the three DA-backed loan portfolios to 3.5 percent, from 4.5 percent last month.
These loan portfolios are the P1-billion credit component of the Rice Competitiveness Enhancement Fund (RCEF); P1-billion credit program under the Sugarcane Industry Development Act (Sida); and the P1.4-billion Agricultural Competitiveness Enhancement Fund (Acef).
The DA said it made the request to reduce the management fee through a letter submitted to Finance Secretary Carlos G. Dominguez III last October 23.
The DA said the three financing programs “aim to make rice, sugarcane, and other farmers and fishers more productive, profitable and prosperous, and globally competitive.” Under RCEF, the P1-B credit fund is equally shared by the LandBank and DBP, at P500 million each. The Sida and Acef financing programs are both managed by the LandBank on the DA’s behalf.
“The said policy [reduction of management fee] complies with the call of President Duterte to make credit affordable to small farmers and fishers,” Agriculture Secretary William D. Dar said in a statement.
Image credits: Laila D. Austria