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MANILA, Philippines -- Close to P2.5 billion has been remitted to the Agricultural Guarantee Fund Pool (AGFP), which guarantees unsecured loans of small farmers and fisher folk, Agriculture Secretary Arthur C. Yap said.

In a statement, Yap said the recent cash infusion came from the P2 billion tax revenues from the Malampaya natural gas project in Palawan.

"Farmers who till a maximum of five hectares each and who have not been able to obtain collateral-free credit from the formal banking sector can now borrow from government or private financial institutions and have as high as 85 percent of their loans secured through this fund pool," Yap said.

Yap earlier issued Administrative Order 23 to set the mechanics for the new facility. The Land Bank of the Philippines administers the AGFP for the agriculture department.

The P2-billion fund is only half of the P4.0 billion of tax earnings from the Malampaya project that President Gloria Macapagal-Arroyo had ordered to be used for the Department of Agriculture's rice self-sufficiency program.

Rural banks, thrift banks, irrigator associations, rice millers and grains traders can avail of AGFP funds for relending to farmers to help them meet the high costs of fertilizers and other inputs.

Ten government-owned and –controlled corporations and government financial institutions had also remitted P478.64 million to the AGFP.

Agriculture undersecretary Berna Romulo Puyat said the contributors to the AGFP included the National Transmission Corp. (P111 million); Land Bank of the Philippines (P100 million); Development Bank of the Philippines (P100 million); National Power Corp. (P100 million); and the Philippine Amusement and Gaming Corp. (P52.4 million).

Puyat said the other contributors were the Local Water Utilities Administration (P5 million); Philippine Economic Zone Authority (P3.73 million); Philippine Charity Sweepstakes Office (P3.6 million); Trade and Investment Development Corporation (1.88 million); and the National Electrification Administration (P1.03 million).

The Metropolitan Waterworks and Sewerage System has also committed to remit P10 million to the AGFP.

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