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Thursday, February 14, 2019
bnd to DA to comply
Wlttr Agri-Agra law
Some Philippine banks may
finally break their years of non-
compliance of the Agri-Agra
Reform Act by prbviding loan of
as much as P200 billion to the
Departrnent of Agriculture. (DA') .
. Agriculture S ecre tary
Emmanuel Pinol said some
banks, including a government
bank and a group of thrift banks,
have offered to provide funding
to the banner projects ofthe DA,
including the Solar-Powered
Irrigation Projects (SPN), the
farrn mechanization program,
bdtf iconstruction of Farm-to-
'fiI*ket Roads 6MRs) .
'During the meeting, PiRol
said these banks offered to
release a combined loan amount
of F2oo billion to bankroll some
agriculture and agrarian projects
in order to complywith the Agri-
Agra Act.
', Under the Agri.Agra law,
'banks are required to set aside 25
n
pertent of their loan funds to the
'e'Cgriculture and fisheries sector.
Over the years, however,
banks would just opt to pay the
" PAq€ -
hefty fines for their failure to
comply with the law since they
considerfarrners and fi shermen
"high risk' borrowers.
' In May last yea! Pinol said
Philippine banks "cheat" just to
get away with Agri-Aga Reform
Act. This, after banks cited
the lackluster performance of
agriculture sector as one main
reason why they refuse to lend
to farmers.
A few months later or just
when DA faces a financial
setback for some ofits projects,
Eastern Samar Congressman
Ben Evardone, who chairs
the House Committee on
credit and Banking, had set
a meeting between Piflol and
some bankers, led by former
Ambassador Allredo Yao, who
owns Zest-O Corporation and
Philippines Business Bank.
Pinol said that during the
meeting, which was just held
this week, the bankers said
they tully supported the idea
earlier submitted by the DA for
the floating of bonds to finance
the banner programs of the
agriculture sector.
o-'l't