AGRICUL T URAL GUARANT E E F UND POOL EDNA A. ATIENZA - PowerPoint PPT Presentation

AGRICUL T URAL GUARANT E E F UND POOL EDNA A. ATIENZA Executive Director

F o rma l L e nding I nstitutio ns Pe rc e ptio n o f L e nding to Sma ll F a rme rs:  No n-b a nka b le  Hig h Cre dit Risk  Hig h Co st o f Se rvic e De live ry F a rme rs la c k a c c e ss I nfo rma l L e nde rs to susta ina b le pro vide :  Re a dily fina nc ia l se rvic e s a va ila b le b ut Hig h Co st L o a n

AGRICUL T URAL GUARANT E E F UND POOL (AGF P) E ST ABL ISHME NT F UND COMPOSIT ION T he AGF P was e stablishe d by vir tue of Administr ative Or de r No. 225- A issue d Agri ‐ Agra on May 26, 2008. Law 6% GOCCs/GFIs 10% MANDAT E • Mitigate the r isks involve d in agr ic ultur al le nding thr ough the pr ovision of guar ante e NG • E nc our age par tne r le nding 84% institutions to e xte nd unse c ur e d agr ic ultur al food c ommodity pr oduc tion loans to small far me r s and fishe r folk (SF F ) AGF P c an guar ante e up to P15 B NG – National Gove r nme nt L E AD AGE NCY GOCCs – Gove rnme nt Owne d and Controlle d Corporations De par tme nt of Agr ic ultur e GF Is – Gove r nme nt F inanc ial Institutions INST IT UT IONAL PROGRAM MANAGE R L and Bank of the Philippine s 4

Or ganization and Manage me nt d: E xe rc ise s dire c tio n a nd supe rvisio n, Gove r ning Boar o ve rse e imple me nta tio n a nd a da pt stra te g ie s to e nsure susta ina b ility o f AGF P Composition: Cha irpe rso n: Unde rse c re ta ry, De pt. o f Ag ric ulture Me mb e rs: Unde rse c re ta ry, De pt. o f Ag ra ria n Re fo rm Unde rse c re ta ry , Na tio na l Anti-Po ve rty Co mmissio n Asst. Se c re ta ry, De pt. o f F ina nc e E xe c utive Vic e Pre side nt, L ANDBANK E xe c utive Dire c to r, Ag ric ultura l Cre dit Po lic y Co unc il Ac a de me Re pre se nta tive Pa rtne r L e nding I nstitutio ns’ Re pre se nta tive E xe c utive Dire c to r, AGF P (No n-vo ting ) 5

Or ganization and Manage me nt Pr ogr am Manage me nt Committe e (PMC): Assists the Go ve rning Bo a rd in the e xe c utio n o f its func tio ns Composition: Cha irpe rso n: L ANDBANKRe pre se nta tive Vic e -Cha irpe rso n: Re pre se nta tive , Ag ric ultura l Cre dit Po lic y Co unc il Me mb e rs: Re pre se nta tive , L ANDBANK Re pre se nta tive , De pa rtme nt o f Ag ric ulture Re pre se nta tive , De pa rtme nt o f Ag ra ria n Re fo rm 6

Or ganization and Manage me nt Pr ogr am Manage me nt Offic e (PMO): Pro vide s te c hnic a l a nd a dministra tive suppo rt to the Go ve rning Bo a rd a nd in- c ha rg e o f da y to da y o pe ra tio ns. Composition: He a d: Pro g ra m E xe c utive Dire c to r Divisio ns: Ma rke ting a nd Ac c o unts Ma na g e me nt Divisio n Cla ims a nd Re c o ve ry Divisio n F ina nc e a nd Administra tio n Divisio n I nte rna l Audit Divisio n 7

F e atur e s of the Guar ante e  E ligible loans: F • Cr op Pr oduc tion 15% PL I - 15% oans to SF • Poultr y Pr oduc tion • L ive stoc k Pr oduc tion • F ishe r y Pr oduc tion 85%  Guar ante e s all r isk, e xc e pt fr aud on the par t of the PL I AGF P - 85%  L 20% r isk- we ighte d by BSP  2% guar ante e fe e pe r annum  85% guar ante e of the pr inc ipal balanc e at the time of c laim 8

E ligible L e nding Institutions NGOs Banks Coops F ar me r Cor ps. Or gs. 9 9

E ligibility Re quir e me nts BANKS 1. Sa tisfa c to ry c re dit sta nding with c re dito rs, if a ny 2. CAME L S Ra ting o f a t le a st 3 3. Pa st Due Ra tio ve , o f no t ne t of valuation r e se r mo re tha n 15% 4. At le a st two -ye a r tra c k re c o rd in le nding to fa rme rs 5. Ca pita l Ade q ua c y Ra tio o f a t le a st 10% 6. Ade q ua te Re se rve Re q uire me nt 7. Pro fita b le o n the ye a r pre c e ding the a pplic a tio n a nd a s o f the time o f a pplic a tio n fo r g ua ra nte e line 10

E ligibility Re quir e me nts COOPE RAT IVE S 1. Re g iste re d with Co o pe ra tive De ve lo pme nt Autho rity (CDA) 2. Sa tisfa c to ry c re dit sta nding with c re dito rs, if a ny 3. Pa st Due Ra tio ne t o f va lua tio n re se rve o f no t mo re tha n 25% 4. At le a st two -ye a r tra c k re c o rd in le nding to fa rme rs 5. Risk-a sse t ra tio (fo r c re dit c o o pe ra tive ) o f no t le ss tha n 10% 6. Co mple te pa rt o r full-time c o re ma na g e me nt te a m 7. Pro fita b le o n the ye a r pre c e ding the a pplic a tio n a nd a s o f the time o f a pplic a tio n fo r g ua ra nte e line 11

E ligibility Re quir e me nts Non- Gove r nme nt Or ganizations (NGOs) 1. Re g iste re d with Se c uritie s a nd E xc ha ng e Co mmissio n (SE C) 2. Sa tisfa c to ry c re dit sta nding with c re dito rs, if a ny 3. Pa st Due Ra tio ne t o f va lua tio n re se rve o f no t mo re tha n 25% 4. At le a st two -ye a r tra c k re c o rd in le nding to fa rme rs 5. Co mple te pa rt o r full-time c o re ma na g e me nt te a m 6. Ne t surplus o n the ye a r pre c e ding the a pplic a tio n a nd a s o f the time o f a pplic a tio n fo r g ua ra nte e line 12

Pr oc e ss F low Guar ante e L ine E stablishme nt Re c ove r y/ Colle c tion of Guar ante e Subr ogate d Cove rage Re c e ivable s Guar ante e Claims 13

E stablishme nt of Guar ante e L ine  PL Ire q ue sts fo r AGF P Gua ra nte e L ine • L e tte r Re q ue st • Bo a rd Re so lutio n • Sig na ture Ca rd • F ina nc ia l Sta te me nts • Ce rtific a tio n fro m Cre dito r/ s • De c la ra tio n o f L o a n Po rtfo lio • Ba sic Busine ss I nfo rma tio n (Busine ss Pro file ) • Re g istra tio n with Re g iste ring E ntity • CAME L S Ra ting • Pro je c te d re le a se s • Ce rtific a te o f Go o d Sta nding issue d b y CDA (fo r Co o ps)  Gua ra nte e L ine s a re re ne wa b le a nnua lly  PL I ma y a pply fo r a dditio na l g ua ra nte e line a t a ny time 14

Guar ante e Cove r age Re que sts for Cove r age must be :  Within 60 days fro m lo a n re le a se  Unda ma g e d c ro ps/ c o mmo ditie s a t the time o f e nro lme nt fo r g ua ra nte e c o ve r  By b a tc h o f PNs • Re le a se s fo r the mo nth a re e nro lle d within 15 da ys fro m mo nth e nd • Ba tc h ma turity da te sha ll b e re c ko ne d fro m ma turity o f the yo ung e st PN 15

Guar ante e Cove r age Re que sts for Cove r age must be : Suppo rte d b y ma ste rlist 1 o f e lig ib le b o rro we rs  • E le c tro nic file to b e sub mitte d b y e -ma il to a g fpc o ve ra g e @ g ma il.c o m using AGF P e nro lme nt te mpla te • Sig ne d c o py to b e sub mitte d thro ug h c o urie r 1 No n-submissio n within 15 c ale ndar days fro m date o f payme nt o f guarante e fe e shall re nde r the c o ve rage null and vo id 2 E nro lme nt fo rc o ve rage in e xc e ss o f the appro ve d line is c o nside re d mate rialmisre pre se ntatio n and may re sult to re vo c atio n o r te rminatio n o f guarante e line 16

Guar ante e F e e Rate s Guarantee Fee Regular ARB Activity Guarantee Period Not PCIC Insured PCIC Insured Not PCIC Insured PCIC Insured Palay Production 5 months 0.85% 0.45% 0.45% 0.25% Pineapple (Plant) 23 months 3.85% 1.95% 1.95% 1.00% (Ratoon) 20 months 3.35% 1.70% 1.70% 0.85% Sugarcane (Plant) 14 months 2.35% 1.20% 1.20% 0.60% (Ratoon) 12 months 2.00% 1.00% 1.00% 0.50% Corn 6 months 1.00% 0.50% 0.50% 0.25% Cassava 14 months 2.35% 1.20% 1.20% 0.60% Other short term crops/ commodities 7 months 1.20% 0.60% 0.60% 0.30% Fishpond/ fishcage operations Bangus 8 months 1.35% 0.70% 0.70% 0.35% Tilapia 7 months 1.20% 0.60% 0.60% 0.30% Prawn 8 months 1.35% 0.70% 0.70% 0.35% Crab 8 months 1.35% 0.70% 0.70% 0.35% Catfish 8 months 1.35% 0.70% 0.70% 0.35% Poultry/ Livestock Layer 20 months 3.35% 1.70% 1.70% 0.85% Broiler 3 months 0.50% 0.25% 0.25% 0.15% Goat (breeding) 7 months 1.20% 0.60% 0.60% 0.30% Goat (fattening) 7 months 1.20% 0.60% 0.60% 0.30% Poultry/ Livestock Hog (breeding) 14 months 2.35% 1.20% 1.20% 0.60% Hog (fattening) 7 months 1.20% 0.60% 0.60% 0.30% Cattle (fattening) 8 months 1.35% 0.70% 0.70% 0.35% Cattle (breeding) 11 months 1.85% 0.95% 0.95% 0.50% Note: Carabao (breeding) 15 months 2.50% 1.25% 1.25% 0.65% * Milk Production Carabao (dairy)* 11 months 1.85% 0.95% 0.95% 0.50% Goat (dairy)* 6 months 1.00% 0.50% 0.50% 0.25% Cattle (dairy)* 11 months 1.85% 0.95% 0.95% 0.50% 17

Guar ante e Cove r age c e nt (20%) 1 Re fund of Guar ante e F e e s shall be Ne t of T we nty Pe r administr ative c ost unde r but not limite d to the following c ir c umstanc e s:  E nr olme nt for c ove r age be yond the appr ove d loan c e iling of the c r op/ c ommodity;  E nr olme nt for c ove r age be yond the appr ove d guar ante e line of the PL I;  E nr olme nt of PL Is with no appr ove d guar ante e line s. 1 E ffe c tive F e br uar y 1, 2016 18