The Philippine Guarantee Corp. (PhilGuarantee) has provided guarantees for P3.5 billion worth of loans in the agriculture sector in the first half of the year, which accounts for 95 percent of the state firm’s goal of P3.7 billion for 2021, the Department of Finance (DOF) said in a statement yesterday.
Alberto Pascual, PhilGuarantee president and chief executive officer, said the loans guaranteed through the firm’s partner-lending institutions (PLIs) have thus far benefited 35,360 small farmers and fisherfolk.
“Guaranteed loans to the agriculture sector by 47 PLIs have already reached P3.499 billion, which is already 95 percent of the 2021 target of P3.675 billion, benefitting 35,360 small farmers and fisherfolk. The outstanding balance as of June 30, 2021 amounted to P1.247 billion,” Pascual said in his report to the DOF.
As the administrator of the Agricultural Guarantee Fund Pool, PhilGuarantee encourages its PLIs to lend to small farmers and fisherfolks or their organizations, by providing guarantee coverage to their unsecured agricultural production loans.
“Since the beginning of the coronavirus disease 2019 (COVID-19) crisis in March 2020, PhilGuarantee lost no time to enable its mandate and respond to the clarion call of the government to provide assistance to affected agri-based workers by way of its guarantee program,” Pascual said.
He said the crops subsector accounted for the bulk of the guaranteed loans, with P3.35 billion or 96 percent covered over the January to June 2021 period.
The livestock subsector came in second in terms of the amount of guaranteed loans as of June of this year, with borrowings amounting to P112.63 million, followed by fisheries with P27.86 million and poultry with P12.03 million.
Pascual said that last year, PhilGuarantee’s approved guarantee lines to 41 PLIs extending loans to the agriculture sector amounted to P5.14 billion, with guaranteed loans totaling P4.25 billion.
“This amount is 21.4 percent beyond our goal of P3.5 billion and resulted into assisting 48,038 small farmers and fisherfolk nationwide. Outstanding balance as of December 31, 2020 amounted to P401.5 million,” he said. — Angela Celis
