NFA needs new loans for palay-buying program, says agency chief

The National Food Authority (NFA) might secure new loans to finance its 2012 palay-buying program, which may involve 1.2 million metric tons (MT) of unmilled rice under the Department of Agriculture’s food security road map.   NFA administrator Lito Banayo on Wednesday said the agency’s subsidy budget of only P4 billion this year can cover roughly 235,000 MT of palay at a support price of P17 per kg.   The agency is mandated to keep prices of palay and rice stable.   Banayo added that the NFA is asking the Aquino administration’s economic planners for clearance to buy 1.2 million MT of palay.   After the Aquino administration helped restructure the NFA loans, the agency’s debt profile has significantly improved, Banayo noted.   He said the agency now has a 25/75 ratio of short-term and long-term loans after it got a P75-billion syndicated loan from the Development Bank of the Philippines and Land Bank of the Philippines.   Before the Aquino administration took over the reins of government, the NFA had a 70/30 loan ratio in favor of short-term loans. — ELR/VS, GMA News