The Star,
Friday, May 9, 2008
Agrobank looks abroad
By DALJIT DHESI
KUALA LUMPUR: Agrobank, the corporatised entity of
Bank Pertanian Malaysia Bhd, is mulling the
provision of financing to local companies venturing
into agriculture overseas.
President Martini Osman said the bank was currently
weighing the pros and cons of financing for such
purposes in heeding the Government's call for
companies to venture into agriculture and food
production, given the soaring global food prices.
“Before providing such a facility, the bank would
need to understand the laws of the particular
foreign country and whether the interests of the
relevant parties are protected.
“In this regard, we have made arrangements to seek
the legal opinions of our lawyers. If everything
goes as planned, the bank hopes to provide the
financing by year-end,'' she told StarBiz in an
interview.
Martini said for overseas agriculture financing, the
bank would focus on neighbouring countries as it
believe the region had ample land and low cost of
production.
On the opening of overseas branches, she said there
were no immediate plans, as Agrobank would need to
be self-sustainable in agriculture before embarking
on such a move.
She said the bank, subject to Bank Negara approval,
was also looking at tapping the hire purchase and
home loans business by the second half in a bid to
strengthen its portfolio.
Apart from project loans, the rebranded entity also
offers, among other things, personal loans (maximum
RM100,000) and micro loans (Modal Usahawan Tani,
maximum RM20,000).
Of the total RM2.66bil in proposed loans approved
this year, Agrobank approved RM1.07bil in the first
three months.
During the first three months, it disbursed loans
worth about RM531mil from the total budgeted
disbursement of about RM2.12bil for the year.
Martini said the bank had recently applied to the
central bank to operate a current account to
facilitate and monitor the business operations of
its customers. It hoped to offer this facility next
year.
She also said Agrobank was working closely with
Malaysian Biotechnology Corp to identify companies
suitable for financing. To date, the bank has
identified three potential companies.
She said the bank would open more branches,
especially in major cities, next year. |
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