Landbank plans 9% hike in agri-related loans

MANILA, Philippines -  The Land Bank of the Philippines (Landbank) plans to incease loans by eight to nine percent for agribusiness, agri-infrastructure, local government units (LGUs) and other development projects.

This was announced yesterday by Landbank president and chief executive officer Gilda E. Pico, stressing that increasing loans to those three sectors is part of the bank’s strategy to strengthen it support for key sectors and projects with high development impact.

According to Pico, “we will continue to allocate our resources in support of the centerpiece programs of the National Government to promote food security, increase agricultural productivity and expand infrastructure development.”

Landbank, thus plans to provide more funding assistance to food and agri-commodity exporters, farmers and fisherfolk cooperatives, water and environment projects as well as microenterprises and small and medium enterprises, countryside financial institutions and LGUs.

“The expansion in Landbank’s loan portfolio is also reflective of the aggressive focus on credit outreach and the gains achieved in countryside development,” Pico added.

Pico had said that the Landbank is prepared to provide up to P20 billion in funds for palay production in support of the Department of Agriculture’s rice self-sufficiency program.

Last year, the Landbank released P12.5 billion in loans to farmers’ cooperatives for palay production.

In 2009, LBP’s loan releases for palay production only amounted to P11.8 billion.

However, Wilfredo Maldia, LBP executive vice president, said that while the bank is willing to provide up to P20 billion for palay production this year, the bank has committed an initial P15 billion for palay production this year.

The amount, Maldia said, can easily go up to P20 billion depending on the capacity of rice farmers to borrow the funds.

Last year, Pico said, LBP released a total of P32.3 billion in loans to farmers and fisherfolks.

The bank’s loan releases were channeled through 988 farmers and fisherfolk cooperative and 356 countryside financial institutions.

By agricultural activity, loans for crop production increased to P17.9 billion in 2010 from P15.9 billion in 2009.

Loans for agri-processing increased to P1.4 billion from P808 milion in 2009.