Bank loses P50-M due to farmers’ bad debts Print
Wednesday, 25 April 2018 17:19

By ALLEN ABASTILLAS

The Land Bank of the Philippines (LBP) has lost up to P50-million in bad debts to Zamboanga farmers, based on figures of its Lending Center.

Vinicus J. Hamoy, LBP Zamboanga City Lending Center Head, warns that the bank might not issue loans to Zamboanga-based farmers unless certified by the Department of Agrarian Reform (DAR) and the Cooperative Development Authority (CDA).

Hamoy explained that they have extended loans to farmers to help improve their livelihood by providing assistance for developing irrigation projects and purchase of fertilizers.

It was learned however that farmers were not able to pay their debts because their income goes straight to traders and were mostly allocated for their daily sustenance.

Hamoy however said that millions of unpaid debts from farmers only happen in their Zamboanga branch office and not in Zamboanga Sibugay, Zamboanga del Norte and Zamboanga del Sur.

He thus said that their office might cut off loans to farmers in Zamboanga City provided they can present a certification from the DAR and the CDA.

Farmer organizations and groups can also avail of loans provided that they can present a contract or certificate from their buyers.

Hamoy said that the bank is financing an abaca farmers association based in barangay La Paz because they have presented a thorough plan of their production, the technology used and marketing.

They also presented a certificate from Iligan city buyers with no limit in the purchase of abaca hemp.  (Allen Abastillas)