Pdb Case

I. Summary of the Case

This case explains how the Planters Development Bank, CIDA (Canada International Development Association, ACES (Agency for Community Educational Services), SAFI (Shanley- Austin Foundation in Infanta), CASAFI (Naga Social Action Center of the Archdiocese of Nueva Caceres in Camarines Sur) and LEFI (Leyte Economic Foundation, Incorporated) worked together in order to provide SME’s needs especially for the agriculture industry specifically for farms and farmers as stated in the case. All of the parties involved have each contribution but transactions and legalities were done through Planters Development Bank. Other said parties also play a vital role because of financing the funds and referrals as well.

Problem and issues among parties occurred when SME’s or farmers were not capable enough to pay the loans they applied from Planters Development Bank which was financed by CIDA. The incapability of SME’s or farmers resulted to complications among the Bank, NGO’s involve and the SME’s or farmers which were the problem we think as a consultant of Planters Development Bank because the financial aspect makes every party beneficial and crucial but suddenly became hard for each party because the SME’s incapability to pay the loan principal and interests which results to slow fund revolving and may result for the program to stop.

I. Statement of the Problem

Profitability for the bank and sustainability for the farmers.

II. Objectives

Short-term:

* To make settlements and solutions regarding loans and interest rates.

Long-term:

* Create a fair program loans for SME’s.

* Determine what other solutions may be done to resolve each of the parties concern.

III. Areas of Consideration

* “I found out that we had a tremendous impact on our clientele. We were a small bank so we were necessarily dealing with small businessmen and entrepreneurs. These were borrowers who were not getting the right credit opportunities, and...