The Government Service Insurance System (GSIS) and the Land Bank of the Philippines (LandBank) have been asked to help Philippine Crop Insurance Corp. (PCIC) to improve its finances.
In a statement on Monday, the finance ministry said the directive was issued after the PCIC reported that 35 centavos were spent for every peso paid by the state-owned company, which provides insurance to farmers.
In contrast, the GSIS and the Social Security System (SSS), which provide social security to government and private sector workers, spend only 3-5 centavos and six centavos, respectively, for each peso given to beneficiaries, has noted the Ministry of Finance.
The PCIC also reported that it had deposited 6.8 billion pesos in cash in the LandBank and the Treasury Office, money which Finance Secretary Carlos Dominguez 3rd said could have earned more if it had been placed in. other high yield investments.
Dominguez asked PCIC president Jovy Bernabe to coordinate with GSIS, described as effectively managing around P $ 1 trillion of investments, to find ways to increase the return on PCIC’s cash by a value of 6.8 billion pesos.
The PCIC must also properly assess the products covered by its insurance, the finance department said, as the claims paid exceeded the premiums collected for certain types of crops.
National Treasurer Rosalia De Leon, meanwhile, noted that the proposed changes to the Agri-Agra Reform Credit Law would affect the funds that currently go to PCIC.
As proposed, a portion of the penalties paid by banks that do not lend at least 25 percent of their loanable funds to farmers will instead be allocated to LandBank and Development Bank of the Philippines lending operations and a program. granting of land titles from the Land Reform Department.
“[I]In this case, the PCIC would need to have a more efficient operation so that they are able to conserve their resources to be able to provide greater insurance coverage to our small farmers, ”said De Leon.