For Inquiries:

Agricultural Guarantee Fund Pool (AGFP)
18th Floor LANDBANK Plaza, 1598 M.H. Del Pilar cor. Dr. J. Quintos Sts.
Malate, 1004 Manila

Contact Numbers: (02) 522-0000 local 2204, 2479 or 8573
Telefax Number: (02) 528-8573

Tuesday, October 7, 2008

LANDBANK Encourages Credit Conduits to Expand Assistance to Palay Farmers Through AGFP

Source: LANDBANK website

The Land Bank of the Philippines (LANDBANK) urges rural banks and farmer organizations across the country to avail of the guarantee coverage provided for by the Agricultural Guarantee Fund Pool (AGFP) in further expanding rice production loans to small farmers.

The AGFP, sourced from the contributions of several government-owned and controlled corporations (GOCCs) and government financial institutions (GFIs), is a fund set up in compliance with the Administrative Order No. 225-A, series of 2008. It shall provide guarantee coverage to unsecured loans of small farmers extended by credit conduits like Countryside Financial Institutions (CFIs), Farmer Organizations (FOs), Small and Medium Enterprises (SMEs), and large corporations so they will be further encouraged to lend to the agricultural sector.

“This is the first program we have undertaken together with DA geared at helping CFIs. The AGFP is in line with the national government’s agricultural productivity program,” LANDBANK President and CEO Gilda E. Pico said during the recently held Recognition of Outstanding LANDBANK Assisted CFI Partners for 2007.

To date, P366 million has been remitted to the Fund. Aside from LANDBANK which contributed P 100 million to AGFP, the other participating GOCCs and GFIs include Development Bank of the Philippines, Philippine Amusement and Gaming Corporation, National Power Corporation, Philippine National Oil Company, Metropolitan Waterworks and Sewerage System, Local Water Utilities Administration, Philippine Economic Zone Authority, Philippine Charity Sweepstakes Office, Trade and Investment Development Corporation, and National Electrification Administration.

LANDBANK acts as the institutional manager of the AGFP. The Program will be implemented initially for five years, subject to review for extension as agreed upon by DA and LANDBANK.

LANDBANK, in coordination with the Department of Agriculture, has conducted road shows in Bataan, Zambales, Bulacan, and Pampanga to promote the AGFP. More information dissemination activities will be scheduled in areas outside Metro Manila to reach potential availers of AGFP.

Administrative Order No. 225-A

Administrative Order No. 225-A established the Agricultural Guarantee Fund Pool (AGFP).

Click here to see the contents of the said order.
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