Landbank loans to priority sector up 33% to P16.6B in Jan-July

MANILA, Philippines - Loans released by the Land Bank of the Philippines to its priority sector increased 33 percent to P16.6 billion in January to July this year, from P12.5 billion in the same period last year.

The bank’s priority sectors are farmers and fisherfolk.

Landbank president Gilda Pico said loans to the palay sector increased to P5.9 billion as of end-July compared to P5.1 billion in the same period last year.

 The corn sector posted an even more spectacular increase of 221 percent to P869 million compared to the P271 million lent from January to July last year.

Loans to the coconut sector moret han doubled to P739.6 million, while the tobacco sector posted an 87 percent increase in loans to P7.1 million.

Only the sugarcane sector suffered a decline of 18 percent to P374 million from the comparable P456 million for the same seven month period last year.

The livestock sector also posted an increase in loans to P1.489 billion, or a 54 percent increase from P970 million last year, while the fisheries sector posted a 29 percent increase to P365 million from P283 million for the comparable period last year.

Meanwhile, Landbank executive vice president Wilfredo Maldia said the bank released under its Food Supply Chain Program as of July this year P3.7 billion.

Landbank had launched its Food Supply Chain Program in October last year with a P50 billion targeted allocation for lending to support the Department of Agriculture’s FSCP.

Maldia said that from October to December 2010, the Landbank released P600 million and from January to July this year released so far P3.1 billion.

For the whole of this year (2011), the Landbank is targeting a release of P7 billion for the FSCP.