Landbank’s agri-agra loans reach P41.3B

In support to the national government’s agricultural development programs, Landbank’s outstanding loans to the agricultural and agrarian sector reached P41.3 billion as of end-March 2002. These loans benefited the country’s farmers and fisherfolk, microenteprises, small and medium enterprises, agri-infrastructure, agri-related activities and agribusiness projects.

This is part of Landbank’s commitment to increase the share of agri-agra loans in its loan portfolio from 38 percent to 65 percent by the end of the 2004. The bank has also identified additional cooperatives for credit assistance while reviewing its different agreements with other credit conduits. These include agri-processors, traders, non-government organizations and agri-schools. Rationalization of the bank’s products and services is also ongoing.

Landbank president and CEO Gary Teves also said that Landbank has reduced the processing time for farmers’ production loans to 45 from 75 working days. "Effective April 1 this year, we have increased the approving levels of loan signatories (below Board level )from P50 million to P100 million. Likewise, we have reduced the signatories from 18 to 10 (up to Board level). All these are part of our effort to cut red tape and streamline lending procedures," Teves added.

To further focus on agrarian reform beneficiaries, Landbank has accredited 41 cooperatives nationwide, while pushing for the establishment of five audit bodies by the second quarter of 2002.

Landbank is also working for the absorption of disenfranchised but good-paying members of past due co-ops by key cooperatives. In Visayas alone, 591 good-paying members of 54 past due co-ops have joined 27 strong cooperatives in the region for the first quarter of the year.