MANILA, Philippines — Loans extended by state-run Land Bank of the Philippines to priority sectors, such as farmers, fishers and small and medium enterprises reached P564 billion last year.
In a statement, Landbank said loans to priority sectors represent a record high share of 93.8 percent of the bank’s total loan portfolio of P601 billion.
“Landbank is taking bigger, bolder steps in our drive to further increase support to priority sectors, especially our small farmers and fishers. This is in line with our commitment to fuel development in the countryside,” said Alex Buenaventura, president and chief executive officer of Landbank.
The bank’s priority sectors include small farmers and fishermen, agrarian reform beneficiaries, SMEs, microenterprises, agri- and aqua- projects of local government units and state corporations, communications, transportation, housing, education, health care, environment, tourism and utilities.
“A major driver of last year’s growth in the bank’s loans to priority sectors was the 53.5 percent increase in loans to agri-businesses, which jumped to P82.6 billion from P53.8 billion in 2016,” Buenaventura said.
He said this raised the bank’s total loans to agriculture and fisheries by 24.4 percent to P138 billion.
Meanwhile, loans extended to the national government for its priority programs grew by 31.9 percent to P380.7 billion, accounting for 63.4 percent of Landbank’s priority sector loans.
These include loans to MSMEs, which increased 43.1 percent to P89.8 billion; utilities, which grew 48.9 percent to P104.9 billion; and healthcare which jumped 39.5 percent to P14.2 billion.
Loans provided to small farmers, fishers and their associations also expanded 11 percent to P45.3 billion.
Educational loans grew 33.9 percent to P6.1 billion, while loans for tourism and transportation went up 35.2 percent and 29.5 percent, respectively.
Loans for housing projects, environment-related projects, and communications also increased last year.
Landbank remains the largest lender to small farmers and fishers, and the leading provider of financial assistance to MSMEs among government-owned corporations and government financial institutions.
It also finances projects in agri-infrastructure, agri-business, schools and hospitals, farm-to-market roads, housing and livelihood, and other development projects of local government units. - Mary Grace Padin