MANILA, Philippines — State-run Land Bank of the Philippines has opened a P2 billion lending facility to assist existing and prospective commercial fishing operators in the purchase of new sea vessels.
Under the Landbank Commercial Fishing Vessel Financing Program, the new credit line allows fishing operators to borrow up to 80 percent of the acquisition cost of brand new, second hand, or refurbished fishing boats and related equipment, either for domestic or overseas use.
“Landbank remains steadfast in supporting the fisheries sector. We are looking to cover the requirements for fishing vessels to assist more fishers in boosting their production and profit, and contribute to ensuring food security in the country,” Landbank president and chief operating officer Cecilia Borromeo said.
Eligible for the program are commercial fishing operators from small and medium enterprises, cooperatives and large enterprises.
The loan is payable for up to 10 years, with an interest rate of five percent per annum for the first three years, subject to repricing thereafter.
Commercial fishing vessels refer to fishing boats, ships or watercraft with gross tonnage of 3.1 and up.
Last year, Landbank’s net income declined by 7.6 percent to P17.1 billion from P18.5 billion in 2019 due to the economic impact of the coronavirus pandemic.
Nevertheless, Borromeo said deposits in 2020 expanded by 17.4 percent to P2.093 trillion from P1.783 trillion in 2019. This fueled a 41.4 percent growth in investments to P982.5 billion from P694.9 billion.
Assets, meanwhile, grew 16.1 percent to P2.362 trillion in 2020 from P2.033 trillion in 2019.
Borromeo said the growth in assets and deposits would allow the bank to continue serving its priority sectors, including small farmers and fishers, micro, small and medium enterprises (MSMEs), and other key development players.
In 2020, the bank’s outstanding loans to the agriculture sector rose to P237.62 billion from P236.31 billion in 2019. The number of farmers and fishers served also reached 2.67 million, 33.5 percent above its end-2020 target of two million.