DBP stepping up lending to agriculture co-ops
Development Bank of the Philippines has beefed up its cooperative lending in the northern part of the country in line with efforts to help develop the cooperative sector.
In a statement, the state-owned bank said it had extended a P20-million revolving credit line to Sta. Cruz and Development Cooperative (Sacdeco) under its lending facility meant for the agriculture-cooperative sector.
The loan granted to Sacdeco, which DBP said was one of the most active cooperatives in the Ilocos Region, is meant for relending to its members to help boost their agricultural incomes.
“Through this credit facility, the bank aims to provide loan financing to viable cooperative and stable cooperative banks extending agricultural loans to eligible borrowers,” DBP said.
Sacdeco has operations in Ilocos Norte, Ilocos Sur, La Union and Pangasinan. Its head office is in Sta. Cruz, Ilocos Sur.
“Being one of the most progressive cooperatives in Region I, Sacdeco can serve as DBP’s partner in financing the needs of micro-agricultural entrepreneurs like farmers and fisherfolk in Northern Luzon,” DBP said.
The bank said it aimed to continue providing financing to the cooperative farming sector in line with its developmental mandate.
Lending to cooperatives is consistent with the moves of regulators to help boost the cooperative sector as a way of accelerating economic growth of the economy.
Earlier, the Bangko Sentral ng Pilipinas has forged an agreement with Land Bank of the Philippines and Philippine Deposit Insurance Corp. to set up a support facility for merging cooperative banks.
Under the agreement, Land Bank and PDIC will extend financial support, such as in the form of equity shares, to big cooperative banks that will acquire financially troubled ones.
Moreover, the BSP will grant regulatory relief, including removal of penalties for noncompliance to capitalization requirement of the bank subject for acquisition.
