Agriculture Secretary and Quedancor chair Luis Lorenzo Jr. attributed the huge increase in the agency’s lending in its ability to secure more funds from government and private sector lenders early this year.
"The bigger funding Quedancor got this year allowed it to re-channel these to thousands of small borrowers seeking capital to plant more crops, raise livestock, engage in aquaculture and run their food and agri-based enterprises," Lorenzo said.
From January to April, 130,438 people benefited from the loans, or 62 percent more than the 80,518 beneficiaries posted in the same period of 2003.
Quedancor president Nelson Buenaflor reported to Lorenzo that Ilocos region emerged as the biggest borrower, at P181.3 million, with the loan released benefiting some 25,172 people, many of whom used the money in the production of tomato, garlic and hybrid rice and as well as for aquaculture.
Western Visayas got the second biggest loan at P124.8 million. This was lent to 11,011 people, some of whom used it to improve their rice production while others to increase their milkfish, prawn and livestock output. Cagayan Valley in northern Luzon and CARAGA in Mindanao came in as third and fourth biggest borrowers at P11.7 million and P102.3 million respectively.
Using the first four-month loan releases as an indication, Quedancor is optimistic it can meet its loan lending target of P5 billion to the farm and fishery sector this year, Buenaflor said.
"We’re optimistic a P5-billion loan release target is doable because public and private institutions from the capital market are increasing the funds they are providing to Quedancor," he said.
Earlier this year, Quedancor successfully negotiated for a P2-billion loan with Equitable Banking Corp. in its bid to reach its capital base target of P10 billion this year and intensify its lending operations.
Quedancor has been acquiring loans from other commercial banks as part of its efforts to build its capital base to P10 billion this year. This should give it the elbow room it needs to expand its lending operations to farmer/fisherfolks and farm-related enterprises.
Aside from the P2-billion loan, Quedancor boosted its coffers with a P1.2-billion rediscounting facility with the Land Bank of the Philippines (Landbank). The agency is working on an additional P3-billion loan facility with Landbank, P300 million from the Philippine Veterans Bank and P500 million from the United Coconut Planters Bank.
Buenaflor said Quedancor’s coffers will also be beefed up by the remaining P500 million supposed to be drawn late last year from the Agricultural Competitiveness Enhancement Fund.