A proposed Php 200 billion bond issuance from the Department of Agriculture(DA) will be rolled out by the Philippine government in order to improve agriculture sector’s budget.
As cited in the report of Manila Bulletin, DA Secretary, Manny Piñol extend his optimism that President Duterte will give his signal on the issuance of the proposed bond issuance.
On the other, Piñol also determined four investment areas that the Department will be focusing one. These are the FMR (farm-to-market road), solar irrigation, logistics, and easy access credit.
According to Piñol, the economic team noted that government will now focus on agriculture. “The country’s economic team is led by the Department of Finance, Department of Budget and Management, and National Economic and Development Authority”.
To date, DA is still waiting for the go signal of the DOF.
“When I refer this to Finance Secretary [Carlos] Dominguez, he advised me to write the National Treasurer. I would assume they are already talking about this. We can tap banks’ money that is supposedly allotted to agriculture,” Piñol said.
Significantly, Dominguez and Central Bank Governor Nestor Espenilla welcomed his proposal. Thus, both of them Dominguez and Central Bank Governor Nestor Espenilla.
The report stated that “banks are required to set aside 25 percent of their loan funds to the agriculture and fisheries sector, according to the Agri Agra law”.
Respective;y, DA will increase its budget this year to Php 120 billion from Php 55 billion it had in 2018.
“The construction of more FMRs; Solar-Powered Irrigation System (SPIS); distribution of more ‘easy access’ credit facilities; purchase or development “Food Boat”; establishment of post-harvest facilities are just some of the things being pushed for right now by the DA”.
Report written by Madelaine B. Miraflor