bnd to DA to comply
Wlttr Agri-Agra law
hefty fines for their failure to
comply with the law since they
Some Philippine banks may considerfarrners and fi shermen
finally break their years of non- "high risk' borrowers.
compliance of the Agri-Agra ' In May last yea! Pinol said
Reform Act by prbviding loan of Philippine banks "cheat" just to
as much as P200 billion to the get away with Agri-Aga Reform
Departrnent of Agriculture. (DA') . Act. This, after banks cited
. Agriculture S ecre tary the lackluster performance of
Emmanuel Pinol said some agriculture sector as one main
banks, including a government reason why they refuse to lend
bank and a group of thrift banks, to farmers.
have offered to provide funding A few months later or just
to the banner projects ofthe DA, when DA faces a financial
including the Solar-Powered setback for some ofits projects,
Irrigation Projects (SPN), the Eastern Samar Congressman
farrn mechanization program, Ben Evardone, who chairs
bdtf iconstruction of Farm-to- the House Committee on
'fiI*ket Roads 6MRs) . credit and Banking, had set
'During the meeting, PiRol a meeting between Piflol and
said these banks offered to some bankers, led by former
release a combined loan amount Ambassador Allredo Yao, who
of F2oo billion to bankroll some owns Zest-O Corporation and
agriculture and agrarian projects Philippines Business Bank.
in order to complywith the Agri- Pinol said that during the
Agra Act. meeting, which was just held
', Under the Agri.Agra law, this week, the bankers said
'banks are required to set aside 25 they tully supported the idea
n
pertent of their loan funds to the earlier submitted by the DA for
'e'Cgriculture and fisheries sector. the floating of bonds to finance
Over the years, however, the banner programs of the
banks would just opt to pay the agriculture sector.