Asian Development Bank commits $100 million to Philippine farmers

[baboyako]

let me translate

"The Agrarian Reform Communities Project II (ACRP II) will allocate $135.2 million for rural infrastructure projects"

half a dozen bridges that go nowhere, with the contracts awarded to the mayors brother.

"$25.2 million for agriculture and enterprise development"

fertilizer bought over cost from the other brothers mayor, then sold below cost to his cousins.

"The remaining funds will be used for capacity building, project implementation management, and contingencies."

(that $10m folks )

capacity building - a new car for the mayor
implementation management - salary for the mayors wife
contingencies - lunch

[keithAngel]

How cynical I thought it was just clever bankers noticing the 20% return offered on rural farm loans

[fred]

How cynical I thought it was just clever bankers noticing the 20% return offered on rural farm loans

You must be kidding!!
There are rural banks right there in Cebu that offer 20% annual interest on 5 year time deposits. I have no idea how much interest they charge for loans but you could saftley say double 20%.

[keithAngel]

yup how sustainable is that i wonder.....sub=prime anybody?

[andypaul]

yup how sustainable is that i wonder.....sub=prime anybody?

Had a quick google and heres how they say they are financed.

http://www.pinoymoneytalk.com/forum/...p?topic=4621.0

heres a snippet

they are very open to queries about their sources of income.

if i remember it right, their sources of income are through various types of loans like salary loans, and microfinance loans for entrepreneurs. salary loans for government teachers for example guarantee a 100% collection through an automatic salary deduction scheme. these among others ensure them between 24% to 36% interest income per year.

in a nutshell, its sources of income are very much similar to another rural bank whose "double your money" promo is being discussed in a thread here in PMT forum.

RBC has been around since 1972, making it a 34-year old Rural Bank.

So if many people lose their jobs and have no assets then they might be buggered.

[fred]

yup how sustainable is that i wonder.....sub=prime anybody?

Well I have no idea how sustainable it will be in the future months as the current climate will have a knock on effect on most financial institutions let alone rural banks in the Philippines!!
However past sustainability has proven to be quite resilient as there are those who are almost at the end of their 5 year term. (Many expats included)
I myself have not invested in these products but if I did I would put no more than 500K Pesos into any one acc as this is the amount now insured by the PDIC.
I think I shall just wait this financial crisis out here on my pittance of an income and struggle on till the dust settles before I decide where to place my pitiful amount.

[nigel]

let me translate

"The Agrarian Reform Communities Project II (ACRP II) will allocate $135.2 million for rural infrastructure projects"

half a dozen bridges that go nowhere, with the contracts awarded to the mayors brother.

"$25.2 million for agriculture and enterprise development"

fertilizer bought over cost from the other brothers mayor, then sold below cost to his cousins.

"The remaining funds will be used for capacity building, project implementation management, and contingencies."

(that $10m folks )

capacity building - a new car for the mayor
implementation management - salary for the mayors wife
contingencies - lunch

I think your right, something like that is likely to happen..