Landbank lends P79.1B to priority sectors in H1

Loans issued by the Land Bank of the Philippines to its priority sectors reached P79.1 billion or 70 percent of its total loan portfolio of P112.7 billion as of the first half this year, Landbank president Gilda E. Pico said.

The amount was released to farmers, fisherfolks, microenterprises and SMEs, livelihood, agri-business, agri-infrastructure, agri and environment-related projects posted. It was higher by a five percent or P874 million over the P78.2 billion lent out in the first half of 2006.

With the bulk of LBP’s loans going to its priority sector, Pico said, the bank is fully compliant with the Agri-Agra Law mandate.

LBP’s non-priority sector loan amounts to only P33.6 billion, representing only 30 percent of its total loan portfolio.

A very recent loan approval is a P213 million loan for the acquisition and installation by Agumil Philippines, Inc. (AGPI) of palm oil machineries and equipment, and the construction of a palm oil processing plant in Buluan, Maguindanao province.

AGPI is the largest palm oil producer in the country. Palm oil is primarily used for cooking.

AGPI has 4,803 hectares planted to oil palm in Central Mindanao and 3,906 hectares in Northeastern Mindanao.

Local demand for palm oil is growing at 2.18 percent annually with demand growing from food and industrial manufacturing industries.

At present, there is a shortfall of about 400,000 metric tons or about 72 percent, according to the Landbank figures.

AGPI’s expansion is expected to provide additional employment for the local people in Maguindanao and help increase the income of farmers who would be given more viable option as compared to cultivating other crops that are easily affected by drought and flooding.