RP no longer entitled to 'highly concessionary' IFAD loan terms

MANILA, Philippines - Because of its good economic performance, the Philippines is no longer entitled to concessionary loan terms from the International Fund for Agricultural Development (IFAD).

According to IFAD country manager for Asia and the Pacific Sana F. K. Jatta, “the Philippines has graduated to an ‘intermediate’ level because of the positive performance of its economy.

This means the Philippines is no longer qualified for IFAD’s “highly concessionary” terms except on a “case-to-case basis.”

The IFAD’s “highly concessionary” loans carry a 40-year repayment term at rates of 0.75 percent to one percent, with a five-year grace period.

Jatta said intermediate countries like the Philippines have a shorter loan repayment period of 20 years with a two percent interest rate.

But because of its current circumstances, the Philippines can request for the highly-concessionary terms and the IFAD board may approved such a request on a “case-to-case basis,” Jatta said.

During the recent Philippine Economic Briefing at the Makati Shangrila, President Arroyo appealed to international donors to extend more concessionary loans to the country to help it rebuild from the twin onslaught of typhoons Ondoy and Pepeng which inflicted damaged worth over P18 billion.

Jatta said the Philippines can request for highly concessionary IFAD loans terms when it negotiates next year for least three pipeline loans, namely the Integrated Natural Resources and Environment Management Program, $20 million; the National Agricultural Value Chain Development Program, $30 million and the Coastal Resource Management and Value Chain Development Program, $20 million.

Since 1978, the IFAD has committed a total of $168.8 million for 12 projects related to agricultural development in the Philippines.

Targetted beneficiaries of the IFAD’s assistance include upland poor households; entrepreneurial poor in selected rural areas and selected and marginalized poor communities dependent on coastal resources in Bicol, Eastern Visayas, Northern Mindanao and in the Autonomous Region of Muslim Mindanao.