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MANILA, Philippines — The Department of Agriculture (DA) is suspending grant assistance given to beneficiaries of its various programs who are delinquent on their loans.
The DA issued Memorandum Order No. 60 as concerned offices under the agency sought procedures to implement the directive that defers the provision of grant assistance to eligible beneficiaries.
This stemmed from a proposal from the Land Bank of the Philippines to put on hold the grant provided to beneficiaries “who are willfully not paying their loans under the said credit program until such time that said beneficiaries would have settled their loan obligations.”
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The memo refers to borrowers who failed to communicate with Landbank on their plan to settle the loan in default.
According to the state-run bank, which implements the Agricultural Competitiveness Enhancement Fund (ACEF) Credit Program for seven years, said this is one of the measures it proposed to address the increasing number of delinquent loans under this initiative.
The ACEF Credit Program offers credit to farmers, fishers and their cooperatives and associations, and micro and small-scale enterprises to boost productivity as well as establish postharvest facilities and processing equipment.
Farmer and fisherfolk cooperatives, associations and micro and small enterprises can secure up to P5 million in loans while individual farmers or fishers can tap P1 million each.
The guidelines cover the DA banner programs on rice, corn, high-value crops, livestock, fisheries, organic agriculture and halal, intended for ensuring food security, addressing poverty alleviation and attaining sustainable growth through higher productivity and efficiency.
The DA said grant assistance that has been previously deferred will be given to beneficiaries once the latter managed to settle their loans in default under the program, as confirmed by Landbank.