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B Financing for KKK- financed projects

Projects under the KKK are classified into two categories : KKK-financed and KKK affiliated. KKK- financed projecta sre funded from the Puhunman Found, providing collateral-free and non-interest bearing loans from the$27,272,000 deposited with the Philippine National Bank, Development Bank of the Philippined and Land Bank. Projects under this found are considered primary projects geared toward immediated benefit for the masses, giving prority to those which have a greather number of beneficiaries, which improves the country’s food production schemea and which have an important role in the development of alternative sources of energy.

C  KKK-affiliated projects

KKK-affiliated projecta are those of secondary and teriary eligibilities within the seven program areas to be funded from the Loan Found amounting to $63,636,000 deposited with the Central Bank. These projects can be either new or on-going livelihood programs which are then accredited to the KKK. Loans for-affiliated projecta earn 12% annual interest. A KKK project may,however, be funded from both the Puhunan and Loan Funds. The loan ceiling for Puhunan Fund is $ 272 or 30% of the loan requirement, whichever is higher.For associations, corporations of cooperatives, the maximum is 30% of the loan requirements. The balance of the loan requirement may be obtained from the Loan Fund,and must be secured by collateral such as implementa equipment and machineries.

An individual project proponent can borrow up to $909 from the Loan Fund while associations have a aciling of $909 perparticipating member. Funding for secondary and tertiary projects,however ,are determined by regional action officers on a case basis.The working capital for the project is released directil to the borrower in cash. Repayment of the loan is done as soon as revenues from the business are earned, and is made to KKK-designated banks according to set schedules. Additional loans to finance expansions or to start a new prospect may be made available to borrower who are up-to-date in their payments.On the other hand, borrowers who are remiss in repayment for 3 sucessive periods can have their collaterals foreclosed and can no lorger avail of additional loans in the future.

Posted 20 August 2009 † admin § Priority Investment Areas ‡ Comments (0) ° Tagged:

The Kilusang Kabuhayan Sa Kaunlaran

The Kilusang Kabuhayan Sa Kaunlaran

The country’s most intensive poverty-reduction scheme however is the Kilusang Kabuhayan sa Kaunlaran (kkk)launched in September 11, 1981, which seeks to reduce poverty through the establishment of livelihood enterpries to be owned and managed  by the beneficiaries of the program themselves. Its basic objective is to encourange self-sufficiency through private enterpreneurship to generate the growth of self-reliant communities. It is envisioned that a productive private undertakeing in a particular community will give birth to interlocking supporter services and thereby generate greater employment and income for that locality. The overall goat is to put up livelihood project in each of the 42,000 villages in the country, so that the people contribute to the increase in GNP and share in the fruits of development.

In terma of employment, it is projected that the movement can generate 150,000 job a year, thus easing the pressure of approximately 500,000 new graduates every year adding to the number of the unemploved. Development of livelihood projects takes into consideration each of the country’s four levels of landforms: the mountainous region, upland and coastal areas. All available resources( the land, rivers, lakes, streams and the seas) will be utilized to create productive fob in every region.

A   Priority investment areas

The movement has selected seven major categories or priority investment areas in which various projects will be developed. These program prototypes are: agro-forestry, agro-livestock, aquamirine, waste and by-products utilization, cottage and light industries, shelter and shelter components ,and services.

With the launching of the KKK, the government released $90,909,000 as themovement’s initial found. In the 1982 budget an additional$90,909,000 was allocated to accelerate the movement. The entire governmental system was adjusted or activated to assist the program-beneficiaries in all aspects of undertaking. The different ministries and implementing agencies have create action offices to provide technical assistance to beneficiaries.Development councils at various levels of government have been directed to co-ordinate programs and projects for greater viability.Found releases and payments have been placed under government banks’ supervision.

Posted 19 August 2009 † admin § Priority Investment Areas ‡ Comments (0) ° Tagged: