The Department of Agriculture and Agricultural Credit Policy Council (DA-ACPC) will be supporting The Allied Bank, a private Filipino commercial bank, in initiating an Agri-Microfinance Program, in response to government’s call for private sector participation in rural finance, according to the DA-ACPC. The bank will be allocating an initial P1 billion (USD 21.4 million) for the program.
The Allied Bank of the
The Department of Agriculture and Agricultural Credit Policy Council (DA-ACPC) will be supporting The Allied Bank, a private Filipino commercial bank, in initiating an Agri-Microfinance Program, in response to government’s call for private sector participation in rural finance, according to the DA-ACPC. The bank will be allocating an initial P1 billion (USD 21.4 million) for the program.
The program will provide production credit to farmers as well as microfinance for the non-farm income generating projects of other members of the farmer’s household. The agricultural finance sub-component will fund agriculture-related activities such as input supply, production, distribution, wholesale, processing and marketing, while the microfinance sub-component is aimed to aid small farmers survive by financing farm diversification activities and non-farm micro-enterprises that can generate cash flows within the short-term.
The DA-ACPC, in turn, will recommend to Allied Bank the priority areas and provide a list of potential lending conduits based on criteria such as those areas that have rural infrastructure and other facilities in place such as irrigation, farm to market roads and post-harvest facilities; and those areas that are accessible to lending conduits. It will also undertake monitoring and performance evaluation of the program.
Allied Bank was incorporated under the laws of the Republic of the
–Monica Sharma, Research Assistant
Additional Resources:
Daily Star: Allied Bank, ACPC partner
in microfinancing.
Allied Bank: www.alliedbank.com.ph.
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