MANILA, Philippines - Loans extended by the Landbank of the Philippines to its priority sectors expanded 29.5 percent to P287.1 billion in the first nine months of the year on increased support for sectors that contribute to economic development, the bank announced yesterday.
The loans to the priority sectors make up 82.7 percent of Landbank’s total loan portfolio of P346.9 billion as of the end of the nine-month period.
Landbank president and CEO Gilda Pico said the expansion of the bank’s loans to priority sectors was the result of increased support for key sectors and projects with high development impact. These included loans extended to small farmers and fishers, small, medium and micro enterprises, utilities, socialized, low cost and medium-cost housing; and transportation.
“Growing communities and the sectors we serve is a commitment that inspires us to be more aggressive in our credit outreach. This is also in support of the Philippine Development Plan, and thrust for sustainable and inclusive growth,” Pico said.
Landbank’s priority sectors include small farmers, agrarian reform beneficiaries and fishers (SFFs) and their associations, microenterprises and SMEs, agri- and aqua-businesses, agri-aqua related projects of local government units and government-owned and controlled corporations, communications, transportation, housing, education, health care, environment-related projects, tourism, and utilities.
The bank’s loan releases to small farmers and fisherfolk alone rose to P37.3 billion in the January to September period against P29.8 billion released in the same period last year.
These loans were channeled through 873 farmers and fishers cooperatives, 170 countryside financial institutions and 199 irrigators’ associations, benefiting 561,232 SFFs.
Loans to micro enterprises and SMEs grew 47 percent to P50.7 billion in the first nine months of the year from P34.6 billion in 2013.
Loans for socialized, low cost, and medium cost housing expanded 42 percent to P32.6 billion from P22.9 billion of the same period last year.
Landbank’s loans to the utilities sector reached P46.9 billion, a 31-percent increase from the P35.7-billion loans in 2013.
Landbank remains the single largest lender to small farmers and fishers and the leading provider of financial assistance to micro, small and medium enterprises among government corporations and government financial institutions.