Landbank to help boost guarantees for agri sector

State-owned Land Bank of the Philippines (Landbank) said it would help boost guarantees for the agricultural sector in case the government pushes through with the deactivation of Quedan and Rural Credit Guarantee Corp. (Quedancor).

In an interview with The Star, Landbank president Gilda Pico said the agency would not be able to replace Quedancor but would nevertheless continue to help farmers and fishermen that need guarantees.

“We cannot replace Quedancor,” Pico said, but quickly added that Landbank would be ready to help farmers in case the deactivation of Quedancor pushes through.

The government is planning to deactivate Quedancor to put an end to its money-losing operations.

Quedancor, which is mandated to accelerate the flow of credit resources to the countryside, has not been doing its functions and has been losing money because of mismanagement.

In 2007, Quedancor had a net loss of P286 million and in 2006, a net loss of P23 million.

The Department of Finance has proposed to infuse P475 million in taxpayers’ money to Quedancor before phasing out the agency.

Fiscal authorities said it is better to invest government money in a net agency that will have the same functions as Quedancor. Finance officials and lawmakers were earlier eyeing Landbank to take over the functions of the agency.

Pico, however, said the Landbank is already helping the farm sector similar to Quedancor through the Philippine Crop Insurance Corp., which is tasked to provide insurance protection for farmers for crop losses and non-agricultural asset losses.

She said Landbank has a trust fund of P500 million for the Philippine Crop Insurance Corp. The amount, she said, would increase in the future.

The government has yet to finalize the phase-out plan of Quedancor.

Party-list Rep. Teodoro Casino of Bayan Muna earlier said the government should also go after those responsible for the mismanagement of Quedancor such as former officials and employees of the agency. — Iris Gonzales