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Archives
January 16-31, 2000
New loan policy to improve credit access of farmers/fisherfolk
by Thea Kristina Pabuayon
Credit services to farmers and fisherfolk
are now expected to improve following the approval of
a new loan policy which extends the grace period on
loans of agriculture and fishery projects with long
gestation periods.
With the approbation of the Monetary board
last November 11, 1999, Section X349, entitled "Agriculture
and Fisheries with Long Gestation Period," was
added to the Manual of Regulations for Banks through
the Bangko Sentral ng Pilipinas Circular No. 217, series
of 1999. This was done in pursuance to the objectives
of Resolution No. 1566 and done in line with the provisions
of the Agriculture and Fisheries Modernization Act (Republic
Act No. 8435).
Specifically, Sec. X349 mandates that
"agriculture and fishery projects with a longer
grace period in repaying the loan based on the economic
life of the project." Banks and guarantee institutions
will be allowed to extend loans and guarantees with
a grace period of up to seven (7) years. This means
that projects which remains economically productive
and constantly produce revenues will not be penalized
even if they exceed the allowed period of payment upon
maturity of the loan.
Lending banks shall, however, institute
some necessary safeguards and precautions to determine
the viability of the financed projects and ensure that
the borrowers have the ability to fulfill their financial
commitments. Furthermore, rules on past due loans and
non-performing loans were compounded. Past due and non-performing
loans under Section X306 and Section X309, respectively,
shall apply except that both will have the reckoning
dates as their grace periods instead of the original
maturity of the loan.
Source: Bangko Sentral ng Pilipinas (BSP) Circular
No. 217, Series of 1999. 11 November 1999. City of Manila,
Philippines 
January 16-31 2000 Articles: ::
Dr.
Ponce talks on continuous professional and personal
development of BAR staff
::
BAR
starts first national team leaders' meeting for CY 2000
::
BAR
to use the GIS to strengthen its policy influencing
capacity and technology monitoring
::
New loan policy to improve credit access of farmers/fisherfolk
::
ITD
conducts Microsoft project training
::: More January 2000 articles :::
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