Thursday, December 26, 2013

Dato, CGMA lobby for agricultural credit boost

Dato Arroyo
Reps. Diosdado “Dato” Macapagal Arroyo and Congresswoman Gloria Macapagal Arroyo are pushing for increasing agricultural productivity to eliminate poverty in the rural areas and accelerate national socio-economic development.
“Guaranteeing agricultural credit is still an effective intervention by the National Government by which farmers and fishers become bankable partners in economic development,” Rep. Diosdado ‘Dato’ Macapagal Arroyo (2nd Dist., Camarines Sur) stressed.
Dato Arroyo and Pampanga Rep. Gloria Macapagal-Arroyo are authors of HB 3266, which aims to strengthen the Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) by broadening its powers and resources to support micro, small and medium enterprises, farmers, fisherfolk, and workers.
HB 3266 seeks to reconstitute the QUEDANCOR into the Agricultural Credit and Guarantee Corporation or AGRICORP with a proposed authorized capitalization of P25-Billion.
The AGRICORP shall be given a clean slate and a strengthened mandate in implementing a renewed agricultural guarantee business by separating and transferring the liabilities and obligations of the old QUEDANCOR to the national government, Arroyo said.
“In so doing, the liabilities incurred shall be separately dealt with through the assistance of the national government’s expert agencies while the needed agricultural guarantee intervention by the government to the agri-fishery sector shall be strengthened further in the over-all objective of national progress and economic development,” the authors said.
QUEDANCOR, Arroyo said, has a unique mandate and potency in triggering countryside growth and employment through the provision of guarantee services to the agri-fishery sector - the sector that has been given less attention though pregnant with remarkable potentials.
“And the way to survive the unique and noble mandate is to skin QUEDANCOR from its trappings and baggage, letting its core mandate of providing guarantees to the agri-fishery sector transcend to its full potentials under the reconstituted AGRICORP,” the authors explained.
The complex problems associated with the old QUEDANCOR shall be left with the national government for a more focused management of liabilities, without affecting the over-all investment relation with the banking industry and other creditor institutions, they pointed out.
As a government financial institution, AGRICORP needs close supervision by the national government’s fiscal and financial regulators, particularly the Department of Finance, Bangko Sentral ng Pilipinas and the Department of Budget and Management whose representation in the AGRICORP Board shall provide better financial assessment and policy guidance.
Moreover, considering the board national objective of increasing credit and guarantee, the Chairmanship and Vice-Chairmanship of the AGRICORP Board necessitates the expert guidance from the Office of the President and the National Economic Development Authority, respectively.
“The institutional memberships in the AGRICORP’s Governing Board shall help ensure strict regulation and full guidance on the precise, updated and proper policies as regards agricultural credit and guarantee operations,” Arroyo said.
“Finally, increasing AGRICORP’s authorized capitalization provides preferential advantage in better recovering the lost trust and confidence from the banking sector and capital market in once again evolving a workable and complementary beneficial relationship in spurring the flow of investment and credit resources into the countryside as a joint undertaking for nation-building and development,” the authors concluded.
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