PhilGuarantee achieves 95% of 2021 target
PhilGuarantee protects P3.5 billion in agri loans in first half of 2021
MANILA – The Department of Finance (DOF) said PhilGuarantee has extended guarantees to loans in the agriculture sector worth P3.5 billion for the first semester of 2021. The amount is 95 percent of the GOCC’s target for the entire year of P3.7 billion.
PhilGuarantee President and CEO Alberto Pascual said the loans guaranteed through their partner-lending institutions (PLIs) benefitted some 35,360 small farmers and fisherfolk.
Mr. Pascual reported to Finance Secretary and PhilGuarantee chair Carlos G. Dominguez III that the crops subsector accounted for the bulk of the guaranteed loans, with P3.35 billion or 96 percent covered from January to June 2021.
“For second quarter 2021, guaranteed loans to the agriculture sector by 47 PLIs reached P3.499 billion, which is already 95 percent of the 2021 target of P3.675 billion, benefitting 35,360 farmers and fisherfolk. The outstanding balance as of June 30,2021 amounted to P1.247 billion,” Pascual said in his report.
PhilGuarantee, the administrator of the Agricultural Guarantee Fund Pool (AGFP), encourages its PLIs to lend to small farmers and fisherfolks or their organizations, by providing guarantee coverage to their unsecured agricultural production loans.
The livestock subsector came in second in terms of the amount of guaranteed loans, with borrowings amounting to P112.63 million, followed by fisheries with P27.86 million and poultry with P12.03 million.
He added PhilGuarantee’s approved guarantee lines to 41 PLIs extending loans to the agriculture sector amounted to P5.14 billion, with guaranteed loans of P4.25 billion.
During the Enhanced Community Quarantine (ECQ) last year, Pascual said the PhilGuarantee Governing Board approved the reduction of the rate of guarantee fee from 1 percent to 0.5 percent and the increase of the guarantee coverage from 85 percent to 90 percent of the loan amount for palay farmers borrowing through the AGFP. These measures were effective within the April 15 to July 15,2020 period. (Melo M. Acuña)