Noy asked to prevent Quedancor dissolution

MANILA, Philippines - Employees of the government-owned Quedan and Rural Credit Guarantee Corp. (Quedancor) have sought the intervention of President Aquino to prevent the deactivation and eventual collapse of the company that provides credit line to millions of small farmers and fishermen across the country.

In a news forum, Leodegardo Valera Jr. who represents the rank and file of the distressed government firm, said economic advisers of former President Arroyo and the Quedancor governing board have recommended the company’s deactivation because of the failure of the company to meet its obligation with its creditors.

He said these advisers have completely disregarded the company’s string of accomplishments in delivering credit to the countryside despite the notion among banks that lending to this sector is risky and generally entails high cost.

In a letter to President Aquino, the employees submitted a three-point recommendation to revive the company.

• A trust fund to be taken from budget surpluses of the Department of Agriculture and the Department of Agrarian Reform to serve either as guarantee fund or loan fund subject to agreement by parties and guidance of the agriculture secretary.

• Transfer of Agriculture and Credit Guarantee Fund (AFCGF) to Quedancor as mandated by the RA 8435 or the Agriculture and Fisheries Modernization Act which designated Quedancor as the fund manager of AFCGF.

• Appointment of a new president possibly from among the officers of the company, with the current president, who has a fixed term, assigned to other agencies under the Office of the President.