The state-owned Development Bank of the Philippines (DBP) has approved a P100-million credit facility for a Quezon-based rural bank to expand financing support for farmers, fisherfolk, and agri-fishery enterprises.
DBP President and Chief Executive Officer Michael O. de Jesus said the loan assistance to Bayanihan Bank, Inc., under the DBP Agriculture, Fisheries, and Rural Development (AFRD) Credit Facility, will help small-scale farmers and fisherfolk expand their operations and respond to a growing market.
“We view this partnership with Bayanihan Bank as a strategic move to ramp up the DBP’s support to the agriculture and fishery sector, in recognition of the critical role that it plays in promoting inclusive economic growth particularly among the marginalized communities,” de Jesus said.
Bayanihan Bank, Inc. is a rural bank established in 1960 that provides financial services to rural communities and supports micro and small business owners, particularly in Quezon, Laguna, the National Capital Region, and Pangasinan.
De Jesus said the credit line will allow Bayanihan Bank to finance the critical needs of its borrowers, including working capital, equipment acquisition and upgrades, and improvements to related facilities.
He said the support is expected to help agri-fishery borrowers raise productivity, improve capacity, and increase their income.
DBP is the ninth largest bank in the country, with total assets of P1.041 trillion. It provides 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, DBP has approved P578.7 million in loans for 32 borrowers under the AFRD program, benefiting more than 1,500 farmers and fisherfolk nationwide.
“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 the most,” de Jesus said.