LBP expects increase in loan facility
By Mai Gevera
Davao City (4 December) -- The Land Bank of the Philippines in the region expects an increase in its loan facility focusing on infrastructure development and food supply chain program under the Private-Public Partnership (PPP) directive of President Benigno Aquino III.
"We are talking of billions of peso here which will all go to the two priority thrusts of Landbank, infrastructure development and food supply chain," said LBP Vice President Camilo C. Leyba.
At present, the bank has P50 billion allotted as loan facility nationwide. However, the figure is expected to increase as more infrastructure development projects are encouraged by the present administration through its PPP mechanism.
The region started providing loan services to the agriculture sector specifically the cardava banana industry. Leyba bared plans of identifying two more participants this year in the food supply chain sector which can avail of the same loan services.
The PPP mechanism is also expected to impact much on the loan services through local government units since they are bent to prioritize infrastructure projects in their locality.
Landbank considers LGUs as the biggest contributor of growth to the bank, having a 100 percent repayment rate in all its 15 branches in the region.
As of October 31 this year, LBP reached P7.08 billion in its total outstanding loans. Bulk of the loan facility goes to LBP's priority sectors which are small and fisherfolk cooperatives, small and medium entrepreneurs and micro enterprises, agri-infrastructure projects of LGUs, agri-related projects of GOCCs, livelihood loans, agri-business, and others.
Twenty-four percent of the P7.08 billion loan facility went to cooperatives and financial conduits like rural banks and farmers' associations.
LBP recorded close to 30,769 newly-assisted farmers and fisherfolks as of October this year.
"Our sustained efforts to deliver credit assistance to our development partners particularly the small farmers and fisherfolks cooperatives, micro enterprises and SMEs is in support to the overall commitment of LBP to spur growth and progress in the countryside," said Leyba. (PIA-XI) [top]