Landbank loans to priority sectors up 20.5%

MANILA, Philippines - Loans released by the Land Bank of the Philippines to its priority sectors jumped 20.5 percent to P141 billion in this first semester of the year, Landbank president Gilda Pico reported on Thursday.

The amount represents 70.6 percent of the bank’s total regular loan portfolio of P199.9 billion.

The priority sectors of Landbank include the small farmers and fisherfolk, microenterprises and SMEs, livelihood, agri-business, agri-infrastructure, agri and environment-related projects, socialized housing, schools and hospitals.

Pico said the bank’s performance during the first half of this year “is a testament to our intensified support to countryside development. By sustaining our credit support to our priority sectors, we are helping accelerate progress in the rural communities.”

The increase in lending to the bank’s priority sectors was due primarily to higher loans for agri-infrastructure projects of local government units which reached P30.6 billion as of June 2010, from P22.5 billion last year.

Agribusiness loans also grew to P20.7 billion from P19.4 billion in 2009.

Landbank’s loans to farmers and fisherfolk reached P17.4 billion, while loans to microenterprises and SMEs registered P19.5 billion.

Livelihood loans stood at P4.2 billion, while loans for the construction of socialized housing, schools, and hospitals reached P15.3 billion.