10 rural banks tapped to collect Masagana 99 loans

Posted: 3:53 AM | Apr. 22, 2006

Inquirer

TEN rural banks and one cooperative have been tapped by the Agricultural Credit Policy Council (ACPC) to collect P1.1 billion in loans the Department of Agriculture made to farmers under a 1970s rice production program called Masagana 99.

The Masagana 99 encouraged adoption of high-yielding rice varieties. In it, rural banks offered no-collateral, low-interest loans to small farmers, with the government guaranteeing 85 percent of any losses suffered by the banks.

Some P5.5 billion of loans released by the Department of Agriculture under the program are still unpaid

Under agreements signed with the ACPC, rural banks in the regions of Ilocos, Cagayan Valley, Central Luzon and Eastern Visayas will collect the amount, representing 20 percent of P5.5 billion.

Under the agreements, Rang-ay Rural Bank is tasked to collect P84 million, Rural Bank of Central Pangasinan P60 million, the Department of Agriculture Regional Office II Cooperative P535 million, Gate Bank P34 million, Rural Bank of San Marcelino P17 million, Bataan Development Bank P16 million, Producers Rural Banking Corp. P64 million, Bangko Buena P5 million, Rural Bank of Sibalom P11 million, Rural Bank of Tibiao P4 million, and Rural Bank of New Washington P18 million. Christine Gaylican, with INQ7.net

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