Landbank loans to priority sectors rise 16% in H1

MANILA, Philippines - The Land Bank of the Philippines has hiked its loans to priority sectors by 16 percent in the first half this year to P206.2 billion, from P177.2 billion in the same period in 2012.

The priority sectors include small farmers and fisherfolks and their associations, agri- and aqua-businesses, agri-aqua related projects of LGUs and government-owned and controlled corporations, small and medium enterprises, communication, transportation, housing, education, healthcare, environment-related projects, and tourism.

Landbank president and CEO Gilda Pico said these sectors cornered about 75.3 percent of the bank’s total loan portfolio of P273.7 billion.

She said the bank has been committed to aggressively expand its financial and technical support to better serve priority sectors.

This is in line with our countryside development mandate and in support of the government’s thrust towards inclusive growth,” she said.

Outstanding loans to small farmers and fisherfolks reached P23.8 billion as of end-June 2013.

From January to June this year, loan releases reached P18.3 billion, benefiting more than 400,000 small farmers and fisherfolks nationwide.

Loans to micro enterprises and SMEs grew a hefty 30 percent, from P26.7 billion in June 2012 to P34.7 billion, while loans to socialized, low-cost and medium-cost housing reached P23.5 billion.

Landbank likewise remains aggressive in extending support to agri-aqua related projects of LGUs and GOCCs, with loans reaching P46.3 billion as of June this year.

Pico said Landbank continues to play a major role in some of the National Government’s priority and development programs.

In support of the Food Supply Chain Program, Landbank released a total P4 billion in loans to 88 anchor firms and 184 cooperatives, NGOs and SME producers in the first semester of 2013.

She said this brings to P22.3 billion the bank’s total loan releases under the program, which is aimed at promoting food security and increasing agricultural productivity and income of farmers by providing financial and technical support along the value-added chain of a commodity or industry.

Under the Department of Agriculture’s Sikat Saka Program, the bank released P85.1 million in loans, benefiting more than 1,600 palay farmers in major rice-producing provinces of the country.  The Sikat Saka Program makes available direct access to credit for palay production of small farmers who are not yet members of Landbank-assisted cooperatives.