NextGen Day

In the first half of 2021, the Philippine Guarantee Corp. (PhilGuarantee) guaranteed loans in the agricultural sector for PHP3.5 billion, which is already 95% of the state firm’s goal of PHP3.7 billion for the whole year.

According to Alberto Pascual, president and CEO of PhilGuarantee, the loans guaranteed by the company’s partner-lending institutions (PLIs) have helped 35,360 small farmers and fishermen thus far.

In his report to Finance Secretary and PhilGuarantee Chairman Carlos Dominguez III, Pascual said that the agricultural sub-sector accounted for the majority of the guaranteed loans, with PHP3.35 billion or 96 percent covering the period from January to June.

“As of the second quarter of 2021, 47 PLIs have guaranteed loans to the agricultural sector totaling PHP3.499 billion, or 95 percent of the PHP3.675 billion goal for 2021, benefiting 35,360 small farmers and fisherfolk. “As of 30 June 2021, the outstanding balance was PHP1.247 billion,” Pascual said in his report.

PhilGuarantee encourages its PLIs to lend to small farmers and fisherfolk or their organizations by providing guarantee coverage for their unsecured agricultural production loans as the administrator of the Agricultural Guarantee Fund Pool (AGFP).

As of June this year, the livestock sub-sector ranked second in terms of guaranteed loans, with PHP112.63 million borrowed, followed by fisheries with PHP27.86 million and poultry with PHP12.03 million.

“Since the start of the Covid-19 (coronavirus disease 2019) crisis in March 2020, PhilGuarantee has wasted no time in enabling its mission and responding to the government’s clarion appeal to help impacted agri-based employees via its guarantee program,” Pascual stated.

Last year, PhilGuarantee granted guarantee lines totaling PHP5.14 billion to 41 PLIs providing loans to the agricultural sector, with guaranteed loans totaling PHP4.25 billion, he added.

“With this sum, we were able to help 48,038 small farmers and fishermen throughout the country, surpassing our target of PHP3.5 billion by 21.4 percent. “As of December 31, 2020, the outstanding balance was PHP401.5 million,” Pascual said.

During the extended community quarantine (ECQ) period last year, Pascual said the PhilGuarantee Governing Board authorized lowering the guarantee charge from 1% to 0.5 percent and increasing the guarantee coverage for palay farmers borrowing via the AGFP from 85% to 90% of the loan amount.

From April 15 through July 15, 2020, these measures were in force.

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