UCPB-CIIF releases loans to coco farmers

United Coconut Planters Bank’s (UCPB) financing company for countryside development has approved total loans worth R114 million in the first six months of the year. In a statement, UCPB-CIIF (Coconut Industry Investment Fund) Finance and Development Corp. (Cocofinance) said they released the loans to 2,367 coconut farmers for funding livelihood projects. “Coconut farmers are among the poorest in the agricultural sector; the livelihood projects we finance give them alternative sources of income to augment their earnings from the farm,” Cocofinance president Edgardo Amistad said. UCPB-CIIF said it plans to release R710 million worth of loans to coconut farmers in 2016, about 16 percent higher year-on-year. In 2015, Cocofinance had 17,981 borrowers taking out R610 million in livelihood loans. With 343 rural partners covering 20,300 barangays in 66 provinces, it is the sole lending company exclusively providing credit to small coconut farmers. Amistad said Cocofinance sources funds for lending from its equity unlike commercial banks which use deposits from the public. Cocofinance is not regulated by the Bangko Sentral ng Pilipinas. Cocofinance’s equity came from contributions of R100 million from UCPB, R175 million from United Coconut Chemicals and R700 million from the CIIF Oil Mills Group or a total of R975 million. At the end of last year, the company has funds amounting to R1.19 billion, up 22 percent from 2014. “If we can access more funds, we can expand our lending even more dramatically,” said Amistad. He estimates about 3.5 million coconut farmers would require financing. Since 1995, Cocofinance has released R7.9 billion in livelihood loans to 408,158 households in 66 provinces. Amistad said Cocofinance ties up with coconut farmers and farm workers organizations, non-governmental organizations and rural financial institutions, using them as loan conduits, to be able reach to far-flung coconut areas. (LCC)