Department of AgricultureLand Bank of the Philippines

Agricultural Guarantee Fund Pool (AGFP)

“Encouraging financial institutions and other credit conduits to lend to small farmers and fisherfolk by providing guarantee cover to unsecured palay and other food production loans extended to farmers.”

Administrative Order No. 225 and 225-A signed by Pres. Gloria Macapagal Arroyo

All GOCCs and GFIs to allocate 5% of their 2007 surplus for projects in rice and food production, and as contribution to an AGFP.

It is used to mitigate the risks involved in agriculture lending and to encourage more participation of financial institutions and other credit providers in extending financing to the agriculture sector.

It provides guarantee cover of up to 85% of the loans that will be extended by FIs to farmers engaged in production of palay, corn, and other food crops.

Background

Eligible Conduits

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

Extent of Participation in AGFP, by Financial Institutions/Lenders

As of August 30, 2010

Type of FI/Type of FI/LenderLender

Approved Guarantee LinesApproved Guarantee Lines Guarantee Lines UsedGuarantee Lines Used

Farmer Farmer Borrowers Borrowers

of of Guaranteed Guaranteed

LoansLoans

No. of No. of FIsFIs

Amount Amount (PM)(PM)

% of % of TotalTotal

No. of No. of FIsFIs

Amount of Amount of Guarantee Guarantee Coverage Coverage

(PM)(PM)

% of % of Approved Approved Guarantee Guarantee

LinesLines

No.No.

BanksBanks 113113 4,073.84,073.8 55.455.4 157157 1,308.61,308.6 32.132.1 41,87341,873

CooperativesCooperatives 280280 1,817.41,817.4 24.724.7 188188 391.3391.3 21.521.5 7,8147,814

SMEs and SMEs and large large corporationscorporations

317317 1,286.01,286.0 17.517.5 233233 947.2947.2 73.773.7 14,33614,336

Farmers Farmers organizationsorganizations 3434 175.0175.0 2.42.4 2525 61.761.7 35.335.3 2,0152,015

TotalTotal 744744 7,352.17,352.1 100.0100.0 603603 2,708.82,708.8 36.836.8 66,03866,038

Guarantee Claims Payment As of August 30, 2010

No. of No. of FIsFIs

% % ShareShare AmountAmount % %

ShareShareFarmerFarmer

BorrowersBorrowers

Banks Banks 1010 3131 28,290,84728,290,847 6666 863863

CooperativesCooperatives 1313 4141 7,372,9157,372,915 1717 382382

SMEsSMEs 99 2828 7,494,6957,494,695 1717 266266

TOTALTOTAL 3232 100100 43,158,45743,158,457 100100 1,5111,511

Backup slideBackup slide

AGFP FUND CONTRIBUTIONSAGFP FUND CONTRIBUTIONSContributorContributor Date DepositedDate Deposited Amount (in Pesos)Amount (in Pesos)

PAGCORPAGCOR 6/26/20086/26/2008 52,400,000.0052,400,000.00

PCSOPCSO 6/30/20086/30/2008 3,600,000.003,600,000.00

NAPOCORNAPOCOR 7/7/20087/7/2008 100,000,000.00100,000,000.00

PEZAPEZA 7/17/20087/17/2008 3,730,000.003,730,000.00

LWUALWUA 7/24/20087/24/2008 5,000,000.005,000,000.00

NEANEA 7/25/20087/25/2008 1,029,000.001,029,000.00

DBPDBP 7/28/20087/28/2008 100,000,000.00100,000,000.00

LANDBANKLANDBANK 8/7/20088/7/2008 100,000,000.00100,000,000.00

TIDCORPTIDCORP 9/4/20089/4/2008 1,885,900.001,885,900.00

TRANSCOTRANSCO 9/10/20089/10/2008 111,000,000.00111,000,000.00

MWSSMWSS 11/24/200811/24/2008 5,000,000.005,000,000.00

FROM NATIONAL GOVERNMENTFROM NATIONAL GOVERNMENT 12/2/200812/2/2008 2,000,000,000.002,000,000,000.00

FROM NATIONAL GOVERNMENTFROM NATIONAL GOVERNMENT 1/20/20091/20/2009 1,199,054,000.001,199,054,000.00

FROM NATIONAL GOVERNMENTFROM NATIONAL GOVERNMENT 4/13/20094/13/2009 800,945,625.00800,945,625.00

TOTAL CONTRIBUTIONTOTAL CONTRIBUTION 4,483,644,525.004,483,644,525.00