Landbank loans to small farmers up 56% to P5 billion in first quarter

MANILA, Philippines - The Land Bank of the Philippines increased its loan releases to small farmers and fisherfolk to P5 billion for the first quarter of this year, 56 percent higher than the P3.2 billion it lent out for the comparable first quarter of 2008.

Of the P5 billion, P2.6 billion was for crop production; P1.4 billion for marketing; P706 million for livestock production and P160 million for fisheries production.

In a press conference, Landbank president and chief executive officer (CEO) Gilda E. Pico said total loans to priority sectors reached a record high of P124.7 billion during the first quarter of this year, 34 percent higher than the P92.8 billion it had lent out during the first quarter of 2008.

The bank’s priority sectors consist of small farmers and fisherfolk, microenterprises and small and medium enterprises, livelihood, agri-business, agri-infrastructure and agri-environment-related projects.

The Landbank’s loans to its priority sectors comprise 67.4 percent of its total loan portfolio which is estimated at P185.1 billion.

Pico said loans for agribusiness grew to P21.1 billion in the first quarter of this year from only P13.2 billion, while loans for environment-related projects expanded to P15.9 billion from P10.6 billion.

Loans for agri-infrastructure projects of local government units, Pico said, went up to P21 billion from just P17.8 billion last year.

Pico said the bank sourced some $105 million from various multilateral and bilateral sources to fund its loans to its priority sectors.

Among the overseas development assistance (ODA) funded projects being worked out by Landbank in coordination with the National Economic and Development Authority (NEDA) are a $66.33 million loan from the European Investment Bank for renewable energy and climate change facility.

Other financing packages the Landbank is working on is a $26.53-million credit line from the German for LGUs, government-owned and controlled corporations, utility cooperatives and private enterprises; a $9.29 million, also from the KfW for LGUs in Panay and Negros and a separate $3.2 million from the KfW for LGUs in Mindanao.