Landbank lends P77.4B to agri-based sectors

The Landbank of the Philippines (Landbank) increased its lending to agri-based sectors in the first quarter this year to P77.4 billion which represents 65 percent of the bank’s total loan portfolio of P119 billion.

"We continue to increase lending to our priority sectors which include small farmers and fisherfolk, microenterprises and SMEs, agri-business, agri-infrastructure, agri-related projects, livelihood and environment-related pro-jects," said Landbank acting president and chief executive officer Gilda E. Pico.

Loans to micro-enterprises and SMEs amounted to P18.5 billion, seven percent up from P17.3 billion during the same period in 2005.

Loan releases to small farmers and fisherfolk fell to P3.1 billion from P3.5 billion in the previous year.

Pico said the drop was caused by a delay in the submission of loan documents by the Quedan Rural and Credit Guarantee Corp., one of its loan rediscounting conduit facilities.

Loans to agribusiness, agri-infrastructure and agri-related projects expanded from last year’s P36.4 billion to P40.2 billion in the first quarter.

Pico said Landbank released P3.5 billion to support government’s pump-priming initiatives such as agri-processing (P1.75 billion) ; agri-infrastructure, including water, sanitation and solid waste management (P870 million); agricultural production (P250 million) and socialized housing (P250 million).

Landbank said its loans for microenterprises and SMEs had the largest share at 16 percent (P18.5 billion), followed by loans to agribusiness at 14 percent (P16.4 billion), and farmers and fisherfolk loans at 13 percent (P15.9 billion).

Loan releases for the Agricultural and Fisheries Modernization (AFMA) Program totaled P4.1 billion. Of this amount, P2.34 billion went to agricultural production, processing and manufacturing.

Loans under the AFMA program benefited more than 68,000 small farmers and fisherfolk, generating more than 35,600 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.