The Quedan and Rural Credit Guarantee Corporation's (QUEDANCOR) mandate is to accelerate the flow of investments and credit resources into the countryside so as to trigger the vigorous growth and development of rural productivity, employment and enterprises to generate more livelihood and income opportunities through the various quedan credit and guarantee programs.
The Quedan Guarantee System
Its guarantee system started with the erstwhile Quedan Guarantee Fund Board, created under LOI 704 on June 9, 1978.
The Quedan Guarantee System
Its guarantee system started with the erstwhile Quedan Guarantee Fund Board, created under LOI 704 on June 9, 1978.
During that time, the country was having surplus in its rice production brought about by the successful implementation of the Masagana ’99 program. During peak harvest, the palay price is at its lowest which affected the income of our marginalized farmers. To help them wait for prices to go up and still be able to finance the new cropping season, the quedan guarantee system was set-up wherein while farmgate price is at its lowest, the farmer will store its produce in an NFA-bonded warehouse and gets a corresponding “quedan” receipt from the warehouse owner as evidence of its stored commodity.
Using the warehouse receipt known as “quedan” as collateral, the farmers can now loan from QGFB accredited banks to finance its new planting season. When palay prices go up, the farmers can now sell its stored commodity, realize a better income and pay its loan with the bank.
The guarantee system later expanded into other commodities and consequently additional programs were created to fit the agency’s services to the changing needs of the people in the agricultural sector.
Birth of QUEDANCOR
The successful implementation of the quedan system through the QGFB has encouraged the national government to expand the agency into a corporation with wider authority and expanded resources. Through Republic Act No. 7393, signed on April 13, 1992., the QGFB was reorganized into QUEDANCOR - a P2-Billion stock corporation. 60% of which is for government subscription and the remaining 40% for farmers, fisherfolk and private investors.
Origin
Birth of QUEDANCOR
The successful implementation of the quedan system through the QGFB has encouraged the national government to expand the agency into a corporation with wider authority and expanded resources. Through Republic Act No. 7393, signed on April 13, 1992., the QGFB was reorganized into QUEDANCOR - a P2-Billion stock corporation. 60% of which is for government subscription and the remaining 40% for farmers, fisherfolk and private investors.
Origin
The word “quedan” comes from the Spanish word “quedar” which means to "deposit or to leave behind." It is an old system of recording commodity deposits as practised during the Spanish colonization of the Philippines.
Farmer enterpreneurs trading in sugar, copra, hemp, tobacco and palay deposited their stocks in warehouses and negotiable warehouse certificates or quedans were issued to them. These quedans became convenient instruments for trading the commodity and as collateral for obtaining a loan.
QUEDANCOR: Enhancing Agri-Fishery Business through Guarantee Services
In its 35 years of operations, QUEDANCOR has channeled a total of P47.59 billion worth of loans to 5.08 million farmers, fisherfolk, retailers, millers and small entrepreneurs nationwide under its various guarantee and credit programs.
In fulfilling its mandate of empowering the rural populace, QUEDANCOR introduced its agri-credit and guarantee programs and services on a national level, through the creation of Regional Offices located in strategic locations across the Philippines.
As of present, QUEDANCOR has 14 Regional Offices backstopped by 337 personnel with main office located at 34 Panay Avenue, Quezon City.
(For more information on QUEDANCOR and its programs, kindly check out the QUEDANCOR primer located on the homepage)
