Leticia presentation to rbap11.11
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Transcript of Leticia presentation to rbap11.11
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Presented By:Ms. LETICIA P. VILLA
Vice PresidentLand Bank of the Philippines
LBP Programs for LBP Programs for Countryside Countryside
Financial Financial InstitutionsInstitutions
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Outline of PresentationOutline of Presentation
• Grassroots Development ProgramGrassroots Development Program• CFI Calamity Assistance Program CFI Calamity Assistance Program • Agricultural Guarantee Fund PoolAgricultural Guarantee Fund Pool
1.1. LBP Credit Assistance to CFIsLBP Credit Assistance to CFIs
2.2. Available LBP Programs for CFIsAvailable LBP Programs for CFIs CreditCredit Equity InvestmentEquity Investment Other Programs & Services Other Programs & Services
3.3. Programs to be PresentedPrograms to be Presented
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LBP Credit LBP Credit Assistance Assistance
to CFIsto CFIs
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Industry Data of Rural Banks As of 31 August 2011
Source: BSP website
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2910%
22680%
2910%
Rural BanksCoop BanksThrift Banks
Number of LBP-Assisted CFIs (284)As of 31 August 2011
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As of 31 August 2011
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Available LBP Programs for CFIs
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1. Rediscounting Line/Easy Rediscounting Facility (Short-Term)
2. Term-Loan Rediscounting Facility3. Microfinance Program for MFI-Retailers4. Stand-by Clearing Line5. CFI Home Lending Program6. Grassroots Development Program7. CFI Calamity Assistance Program
Credit Programs
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1. Capital Infusion for CFIs (2nd Tranche)
• Developmental Module
• Business Module
• Risk Recovery Program-Types 1 & 2
2. Unsecured Subordinated Debt Facility
Capital Enhancement Programs
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Other Current Programs/Services
1. Clearing Arrangement with CFIs with Negotiable Order of Withdrawal Accounts
2. Correspondent Banking Line (under DSWD’s Conditional Cash Transfer Program)
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Grassroots Development
Program (GDP)
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Program Objectives
To encourage CFIs and MFIs to expand outreach and extend financial services in areas where there is very limited banking presence or unserved areas, and where small farmers and fisherfolk (SFFs) are not organized.
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Program Mechanics
Participating CFIs or MFIs shall identify, accredit and lend to grassroots enabling partners, such as agri-business entities and non-government organizations, which will in turn, relend to SFF borrowers for livelihood activities in the hard-to-reach or identified unserved areas of LBP.
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LBP GRASSROOTS DEVELOPMENT PROGRAM
(Funds Flow)
LANDBANK
CFIs & MFIs
(Rural Banks, Thrift Banks, Coop Banks, NGOs)
Grassroots Dev’t. Partners
(Agribusiness entities, NGOs)
Small Farmers &
Fisherfolk
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Program Components
A. Credit To finance the term-loan working
capital of participating CFIs/MFIs for relending to SFFs by participating CFIs/MFIs.
B. Technical Assistance
To be given as incentive to the participating CFIs/MFIs in the form of trainings, enhancement of MIS database, among others
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Program Features & Basic Policies
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Accredited in the LANDBANK’s Rediscounting Program
With CAMELS Rating of 3.0 or better in the last two recent examinations, with no rating below 3 in any of the CAMELS block during the said examination
With Net Past Due Ratio of not more than 25%
Eligibility Criteria for CFIs
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With Capital adequacy ratio (CAR) of at least 12%;
With Portfolio at Risk (PAR) of not more than 10% (for those with microfinance portfolio);
In current status with satisfactory repayment in all facilities with creditor banks;
No major BSP findings during the most recent examination
Eligibility Criteria for CFIs
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Credit Facility Term Loan
Purpose Working Capital for
RelendingMaximum Loan Amount
Up to 10% of CFI/MFI’s networth based on its latest audited FS filed with BIR provided the amount is within the CFI/MFI’s borrowing capacity.
Lending Policies
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Term of Loan
Maximum of three (3) years reckoned from the date of release
Interest Rate
Prevailing interest rate at the time of availment (currently priced at 5.5% p.a.), fixed for the duration of the loan
Lending Policies
Manner of Loan Release
Lump sum based on the masterlist of prospective sub-borrowers submitted by the grassroots enabling partners to CFIs/MFIs
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Collaterals/Securities
Assignment of CFI/MFI’s Promissory Notes plus underlying collaterals
Assignment of proceeds of AGFP guarantee for loans extended by Grassroots Enabling Partners to small farmers and fisherfolk, if applicable
Lending Policies
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Mode of Payment
Principal Payments
In equal quarterly payments to start at the end of the first quarter from the date of loan release
Interest payments
In quarterly payments based on remaining outstanding balance
Lending Policies
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Pre-release Requirements
Masterlist of prospective sub-borrowers of grassroots enabling partners.
Validation of at least 20% of the total promissory notes of the sub-borrowers (aside from the bank’s standard pre-release documents)
Lending Policies
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CFI Calamity Assistance CFI Calamity Assistance ProgamProgam
(CFI-CAP)(CFI-CAP)
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Eligible Borrowers
CFIs affected by typhoons, disasters and natural calamities as declared by the Provincial Disaster Risk Reduction and Management Council (PDRRMC), National Disaster Risk Reduction and Management Council (NDRRMC), or by the Office of the President.
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Eligibility Criteria
CFIs with loan portfolio affected by the calamity as validated by LANDBANK Lending Center;
CFIs with a capital adequacy ratio (CAR) of at least 10% prior to calamity; and
CFIs with no unrectified/uncorrected serious exceptions and/or irregularities based on the latest BSP examination and those with no arrearages prior to the occurrence of calamity.
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Lending Policies
Maximum Loanable Amount
Ninety percent (90%) of the CFI’s affected portfolio, but not to exceed P5.0 M per CFI, whichever is lower
Interest Rate
Eight percent (8%) per annum
Availability Period
Within one year from the date of the declaration of the calamity by the PDRRMC, NDRRMC or OP.
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Term of the Loan
Up to seven (7) years
Repayment Term
Quarterly for both principal and interest
Loan Security
Post Dated Checks
Lending Policies
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Agricultural Guarantee Fund Agricultural Guarantee Fund Pool (AGFP)Pool (AGFP)
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To encourage lending institutions to lend to small farmers and fisherfolk by providing guarantee cover on loan portfolio not covered by any collaterals.
Program Objectives
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Eligible Participating Lending Institutions (PLIs)
Banks (e.g. Rural Banks, Cooperative Banks, Thrift Banks)
Cooperatives
Small and Medium Enterprises (SMEs) and Large Corporations such as input providers
Non-Government Organizations and Farmers’ Organizations, other than cooperatives
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Eligible Sub-loans that can be guaranteed
Loans of small farmers and fisherfolk used for palay and food commodity production
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Program Features Cover guarantees equivalent to 85%
of the principal loan extended by the
lending institutions (net of interest and
other charges deducted in advance)
Guarantees all risks except fraud on
the part of the conduits
Quick payment of guarantee claims
(within 15-30 days upon receipt of
complete claim documents)
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Program Features
Minimal documentary requirements
for guarantee claims
Loans guaranteed by the AGFP
shall carry a risk-weight of 20%
(per BSP Circular No. 713)
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Claims Procedure
80% of claims to be paid within 15 days from application/ submission of claim documents
Remaining 20% to be paid within 30 days after the conduct of validation.
Guarantee Fee
2% per annum based on the amount of the loan extended by the PLIs to eligible sub-borrowers
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Ang Bangkong May Damdaming Bayan
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“One may walk over the highest mountain one step at a time.”
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Thank you