August 27, 2010
Philippine government adds US$2.21 million credit for El Nino-hit farmers
The Philippine government has made available an additional PHP100 million (US$2.21 million) for the farmers and fishermen's microloans affected by El Nino and other calamities associated with climate change.
The Agricultural Credit Policy Council and People's Credit and Finance Corp. (ACPC-PCFC) allowed the release and use of an additional PHP100 million (US$2.21 million) for the Agro-Microfinance Program (AMP).
"This agri-microfinance window under PCFC seeks to help mitigate the adverse impact of climate change, global warming and El Nino on the agricultural sector, especially on the lives of small farmers and fisherfolk who suffer the most in times of natural and man-made calamities," said ACPC executive director Jovita M. Corpuz.
ACPC officials said the programme will prioritise El Niño and other calamity-stricken areas identified by the Department of Agriculture (DA). The AMP uses PCFC's extensive network of microfinance institutions (MFIs) as conduits.
Under the programme, the PCFC will administer the provision of loans to small farmers and fisherfolk through its accredited borrower organisations which can either be banks or nongovernment organisations (NGOs) that pass the accreditation criteria.
So far, the PCFC has already disbursed PHP64 million (US$1.41 million) out of the programme's initial fund through its various MFI conduits, benefiting 3,438 farmers and fisherfolk nationwide.
The AMP is one of the programmes under the Agro-Industry Modernization Credit and Financing Program (AFMP), the government's umbrella financing programme for agriculture and fisheries. It was established through ACPC Resolution 2, series of 2009.
Corpuz noted that the release of the additional fund was contained in Resolution 2, series of 2010.
Meanwhile, the ACPC is set to conduct an independent review of the ongoing programmes of the attached agency of the DA to determine their effectiveness and viability.
The ACPC will examine the design and operating guidelines and procedures of each programme; identify enabling and deterrent factors in the successful operation of the programmes; determine the efficiency and effectiveness of the programmes in terms of outreach, financial performance including default ratios; and recommend ways to improve operations and enhance the viability of the programmes.
