STATE-OWNED Development Bank of the Philippines (DBP) has approved P100 million in credit assistance to a Quezon-based rural bank that would benefit small-scale farmers and fisherfolk.
The loan program was granted to Bayanihan Bank Inc., a rural bank which has operated since 1960, providing financial services to micro and small business owners in Quezon, Laguna, Pangasinan, and the National Capital Region.
The loan assistance is under DBP’s Agriculture, Fisheries, and Rural Development (AFRD) Credit Facility. It provides financial support to help boost productivity and build capacity for small-scale farmers and fisherfolk wanting to serve a broader market.
The fund would allow Bayanihan Bank to finance its borrowers’ needs — such as working capital, purchase and upgrade of equipment, and enhancement of facilities — to boost productivity and income, DBP president Michael de Jesus said.
“We view this partnership with Bayanihan Bank as a strategic move to ramp up DBP’s support to the agriculture and fishery sector, in recognition of their critical role in promoting inclusive economic growth, particularly among the marginalized communities,” de Jesus pointed out.
DBP is the country’s ninth largest bank, with P1.041 trillion in total assets. Its mandate is to provide credit support to four priority sectors — infrastructure and logistics; micro, small, and medium enterprises; the environment; and social services and community development.
As of end-April, the bank has approved P587.7 million in loans to 32 borrowers in the AFRD program, benefitting over 1,500 farmers and fisherfolk across the country.
“We look forward to forging more partnerships with cooperatives, rural banks, and microfinance institutions, so DBP can better fulfill its developmental mandate by extending financing assistance to sectors that need it most,” de Jesus said.
