Landbank increases agri lending

The Landbank of the Philippines (Landbank) increased its lending to the agriculture and fishery sectors in the first quarter this year to P73.9 billion which represents 69 percent of the bank’s total loan portfolio of P107 billion.

"We’ve surpassed our year-end 2005 target of 65-percent share for our priority sectors. This reflects our intensified support for our key priority sectors," said Landbank president and CEO Gary B. Teves said.

Landbank’s priority sectors include the small farmers and fisherfolk, microenterprises and SMEs, agri-business, agri-infrastructure, agri-related projects, livelihood and environment-related projects.

Loans to micro-enterprises and SMEs amounted to P17.3 billion, 16 percent of the bank’s loan portfolio. Meanwhile, loans to small farmers and fisherfolk reached P15.9 billion, benefiting close to two million farmers nationwide.

Credit assistance to small farmers and fisherfolk as of end-March this year was 26 percent higher than the P2.7 billion released during the first quarter of last year.

The amount benefited more than 97,000 small farmers and fisherfolk nationwide and was channeled through 567 cooperatives, 271 countryside financial institutions and Quedancor.

On the other hand, loan releases for the Agricultural and Fisheries Modernization (AFMA) Program totaled P4.2 billion. Of this amount, P2 billion went to marketing assistance loans for farmers and fisherfolk.

"The P4.2 billion represents 22 percent of our 2005 AFMA target of P19 billion," said Teves.

"Our March performance represents a 100- percent jump from the P2.1 billion we released for AFMA for the first two months of the year."

Its loans under the AFMA program benefited more than 90,000 small farmers and fisherfolk, generating more than 48,000 new jobs since the year’s onset.

The bank’s credit support for AFMA has five components: production, processing and manufacturing; farmers-fisherfolk marketing assistance; post-harvest facilities; other infrastructure, and irrigation.