Jordan Times
Thursday, August 26, 1999
Agricultural Credit Corporation plans to raise capital to JD50 million
AMMAN (J.T.) — THE AGRICULTURAL Credit Corporation (ACC) plans to increase its capital to JD50 million through the gradual contribution of the government over a number of years or through the contribution of farmers or through the commercial banking system and the private sector, according to the ACC's 1998 annual report. The corporation said that its lending plan for 1999 amounts to JD22 million including JD11 million to finance the purchase of necessary fodder for farmers who raise cattle.
The ACC extended a total of JD19.7 million of credits to 7,879 farmers last year, the report said indicating that 7,248 land reclamation and new projects were financed through the corporation's 20 offices spread throughout the country. The report added that 61 per cent of the borrowers were new beneficiaries who obtained credits for the first time. Credits amounting to less than JD10,000 accounted for 80 per cent of the total loans and 87 per cent of the total credits benefited farmers whose land ownership does not exceed 30 dunums each. This clearly emphasises that most of the loans extended generally flowed to the small farmers in the Kingdom.
Based on the government directives, the ACC rescheduled JD60 million of debts, of which JD17 million were due, at the end of last year. This rescheduling benefited around 41,000 farmers, mostly small borrowers, who saw the instalments of their loan extended to between three and 10 years depending on the maturity of the original loans extended.
During 1998, the corporation was able to collect JD18.7 million from the farmers in repayments which accounted for 74 per cent of the amounts that were due for settlement.
The outstanding amount of credit was JD89.4 million at the end of 1998. Total assets stood at JD101.4 million while the capital and reserves totalled JD35.8 million.
Loans for purchasing agricultural production input ranked first with JD7.8 million or 39.8 per cent of the total followed by credits for construction and utilisation of agricultural land that amounted to JD3.6 million and represented 18.4 per cent of the total. Loans for mechanisation and farm industries totalled JD1.6 million or 8.2 per cent of the gross amount.
JD1.3 million, or 6.6 per cent of the total, were directed towards development of water resources and its utilisation while the last JD0.99 million of the credits were for constructing rural and farm buildings. The amount represented five per cent of the total.
Since it was established in 1960 until the end of 1998, the ACC extended around JD239 million in loans that benefited 142,000 farmers whose land reclamation and new ventures came to 106,000 projects. Improving and constructing farmland in irrigated areas took 22 per cent of the total loans.