MANILA -Development Bank of the Philippines (DBP) said it launched a special credit facility for coconut farmers in the country as part of its effort to help develop one of the major segments of the local agricultural sector.
Through this new loan program, dubbed as the Coconut Farmers and Industry Development Credit (CFID) Program, eligible coconut farmer enterprises and coconut farmers’ cooperatives and organizations may borrow funds to finance coconut value chain projects.
These include the acquisition of machinery and equipment, establishment of production and postproduction facilities, as well as for the establishment of intercropping and livestock poultry integration in coconut farms.
“We believe that a robust agribusiness sector is one of the keys to achieving a food-secure Philippines. Through this new loan program, DBP aims to pave the way for coconut farmers and ‘agri-preneurs’ to thrive in a highly competitive market,” DBP president and CEO Michael de Jesus said in a statement.
The CFID will have a loan amount of up to 90 percent of the total project cost for project financing and relending, according to the DBP.
Loans taken out under the credit facility will be financed substantially by the Coconut Farmers and Industry Trust Fund, where 75 percent of the funds will be sourced from, said the DBP.
The remaining 25 percent will be financed using DBP funds, added the state-owned bank.
“DBP is ready to provide financing to viable projects and will continue to work towards redefining the traditional approach to agriculture lending by putting greater emphasis on the value chain and business side of the spectrum,” De Jesus said. INQ
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