ACPC Deputy Executive Director Ramon C. Yedra answers questions during the open forum session of the AMCFP-CBAP orientation.

With the approval last September 21, 2011 of ACPC Board Resolution No. 6, Series of 2011 on the implementation of the Agro-Industry Modernization Credit and Financing Program - Cooperative Banks Agri-Lending Program (AMCFP-CBAP), the ACPC conducted an orientation on this latest P400 million-funded program on September 29, 2011 at the ACPC Boardroom in One San Miguel Avenue Building, Pasig City.

The orientation was aimed at properly and adequately disseminating the implementing guidelines and program mechanics for the AMCFP-CBAP to target program partners so they could have a better appreciation of the new financing scheme. The activity also served as a venue to clarify possible concerns regarding program implementation.

Sixty-one (61) participants attended the orientation composed mainly of managers and/or chairpersons from twenty-seven (27) potential partner cooperative banks nationwide as well as representatives from the national federation of cooperative banks, the BANGKOOP. Also present during the orientation was Congressman Agapito H. Guanlao of the Butil Farmers’ Partylist.

In her opening message, ACPC Executive Director Jovita M. Corpuz informed the participants that key officials of the BANGKOOP as well as other officials from some of the cooperative banks were also instrumental in having the program approved by the ACPC Board which is chaired by Department of Agriculture Secretary Proceso Alcala. She also emphasized to participants the program’s aim not only of providing low-cost funding support to cooperative banks to increase their agri-loan portfolio, but also to lower down their pass-on rates to small farmers and fisherfolk borrowers.

This was echoed by Cong. Guanlao who enjoined the participants to support the program, stating that one of the primary considerations for its approval was a lower final pass-on rate to farmer and fisherfolk borrowers. He, likewise, informed the participants of the ACPC Board’s requirement that the final effective interest rate should already include the insurance premium and/or the credit guarantee fee.

This was echoed by Cong. Guanlao who enjoined the participants to support the program, stating that one of the primary considerations for its approval was a lower final pass-on rate to farmer and fisherfolk borrowers. He, likewise, informed the participants of the ACPC Board’s requirement that the final effective interest rate should already include the insurance premium and/or the credit guarantee fee.

The CBAP’s depository mode is the first scheme under the AMCFP that deviates from the wholesaler-retailer approach by eliminating the wholesaler. It, therefore, lessens the layers in the usual credit provision chain. Under this program, the ACPC provides cooperative banks low-cost funding support in the form of special time deposits, which the cooperative banks could use in extending more loans to small farm and fishing households. The effective interest rate to end-borrowers under this program shall not exceed 15% per year.

The program guidelines were presented during the orientation by ACPC Project Development Officer IV, Joel Matira. This was followed by an open forum session where questions from participants were addressed by ACPC Deputy Executive Director Ramon Yedra. Later, target setting under the program was done by the participants. The setting of targets was facilitated by ACPC Project Development Officer V Noel Clarence Ducusin.

At the end of the orientation, all the cooperative bank representatives present committed targets under the AMCFP-CBAP.

Managers and chairpersons from 27 cooperative banks nationwide listen to the ACPC orientation on the guidelines of the AMCFP-CBAP.