Landbank loans to agriculture reach P238 billion in 2020

MANILA, Philippines — State-run Land Bank of the Philippines’ outstanding loans to the agriculture sector reached P237.62 billion in 2020 as it intensified its lending activities and reached out to more farmers and fishers.

Landbank’s total loans to the sector exceeded the end-2019 level of P236.31 billion, but fell short of its end-2020 goal of P245 billion by about three percent.

In a text message, Landbank vice president for corporate affairs Vivian Cañonero said the bank’s total loans to the agriculture sector had so far benefited 2.67 million farmers and fishers nationwide.

This surpassed the bank’s target of two million for 2020, and was more than 2.5 times higher than the 1.03 million cumulative beneficiaries recorded in 2019.

Landbank is a government financial institution with the social mandate of promoting countryside development, servicing the financial needs of small farmers and fishers, micro, small and medium enterprises, countryside financial institutions, local government unit, and government institutions.

For 2021, Landbank is targeting to further expand its agri lending portfolio to P281.75 billion, according to Cañonero. The bank had also committed to increase the number of its beneficiaries in the sector to three million within the next two years.

Earlier, Landbank president and chief executive officer Cecilia Borromeo said the bank would prioritize the extension of financing support to agribusiness players, citing the sector’s role in the economic recovery of the country. These include all stakeholders in the agribusiness value chain, be it micro, small or medium enterprises or large firms.

Currently, Borromeo said Landbank has a wide range of lending programs and credit facilities for players in the sector.

Government financial institutions, including the Landbank, have also been launching various lending programs to assist vulnerable sectors affected by the COVID-19 health crisis.

For Landbank, these include the Interim Rehabilitation Support to Cushion Unfavorably Affected Enterprises by COVID-19 (I-RESCUE) program, which seeks to support the recovery of small and medium enterprises, microfinance institutions, and cooperatives from the impact of the pandemic.

Provincial, city and municipal governments may also access loans under the Restoration and Invigoration Package for a Self-sufficient Economy Towards Upgrowth for LGUs or RISE UP LGUs to help them rebuild their economy amid the health crisis.

Landbank and the Development Bank of the Philippines (DBP) were also allotted P1 billion each under the Bayanihan to Recover as One Act to provide interest subsidy for new and existing loans secured by local government units.