JUNE 10, 2011 DATE

NR # 2431
REF. NO.

Congress to review the implementation of the countrys credit facility

Lawmakers today urged Congress to review the implementation of the Agri-Agra Reform Credit Act and the countrys credit facility programs for small farmers and fisher folks. Reps. Agapito Guanlao (BUTIL Party-list) and Mark Llandro Mendoza (4th District, Batangas), authors of House Resolution 1047, asked the House Special Committee on Food Security and the Committee on Agriculture and Food to jointly review the credit facility for the farmers. Mendoza said there is a need to pursue full development of agriculture and fisheries by the year 2025 as envisioned by the recently concluded Agricultural and Fishery Summit recently held in Antipolo, Rizal. Citing reports, Mendoza said as of November 2009, the loanable funds of the banking sector have reached P2.27 trillion. The study only proved that lending to agriagra should have reached over P500 billion while loans to small and medium enterprises must have amounted to P227 billion, he said. Mendoza also said loans extended to the agriculture sector only stood less than P350 billion. Quoting the study of the Agricultural Credit Policy council (ACPC), Mendoza said the Agricultural Modernization Credit Facility Program (AMCFP) should have been appropriated the amount of P2 billion for the first year of its implementation and P1.7 billion every year in the next six years. The credit facility program had never been implemented, Mendoza said. Guanlao said access to credit by the agriculture sector remains limited, saying that in 2007, the total credit requirement of the agriculture sector for palay, corn, coconut, sugarcane and fisheries was estimated at P200 billion. In 2007, banks were able to finance only P48 billion or 24% of the requirement leaving a credit gap of P152 billion. The bulk of the approximate gap can be traced to palay and corn farmers whose unmet credit demand was estimated at P66 billion and P53 billion, respectively, Guanlao said. (30) sb