DBP, rural bank inks P100-M loan deal for agri-fishery sector

State-owned Development Bank of the Philippines (DBP) has approved a P100-million credit assistance to a Quezon-based rural bank for relending to its sub-borrowers in the agri-fishery sector for productivity enhancement and capacity-building, a top official said.

DBP President and Chief Executive Officer Michael O. de Jesus said the loan assistance to Bayanihan Bank, Inc. under DBP’s Agriculture, Fisheries, and Rural Development (AFRD) Credit Facility will provide financial support for small-scale farmers and fisherfolks looking to expand their operations to cater to a broadening 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.

DBP is the ninth largest bank in the country with total assets of P1.041 trillion and provides credit support to four priority sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development.

Bayanihan Bank, Inc. is a rural bank established in 1960 that provides accessible financial services to rural communities and empowers micro and small business owners, particularly in Quezon province, Laguna, the National Capital Region, and Pangasinan.

De Jesus said the loan would enable Bayanihan Bank to finance its borrowers’ critical requirements, including working capital, acquisition and upgrading of equipment, and improvement of related facilities, and allow them to enhance their productivity and boost their income.

He said that as of end-April, DBP has approved a total of P578.7 million in loans for 32 borrowers under the AFRD program, that have benefitted more than 1,500 farmers and fisherfolks 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 the most,” de Jesus said.