LGU loans in Landbank amount to P210 million in first quarter

CEBU, Philippines - Land Bank of the Philippines vows to strengthen assistance to local government units to further spur the economy, taking into account the P210 million loans the bank has approved in the first quarter of 2009 for various development projects of LGUs.

LBP-7 vice president and regional head Ruel Romarate said that the bank has heightened its support to various industries, especially the small players in the business community, as well as government-initiated projects.

“We are determined to fund various projects of our LGUs in order to stimulate more developments in their area. This way, we can help boost the confidence of the locals even amid the global crisis,” Romarate said.

He added that for the first quarter of this year, the bank has approved a total of   P49 million loans that will finance different projects in Bohol, including P29 million for the purchase of heavy equipment for road maintenance as well as a budget to fund the construction of several municipal offices in Carmen, Bohol.

Another P20 million will go to the development of Badiang Spring Resort in Valencia, Bohol to spur more tourism activities in the province, he said.

In Cebu, the bank official revealed Landbank 7 endorsed a P15 million loan for the rehabilitation of the town’s gymnasium and purchase of heavy equipment for road maintenance in San Francisco, Camotes Island in Cebu.

While, an additional P11 million is allotted for the construction of public market in Alcantara, Cebu, while P10 million will go to the purchase of heavy equipment for road maintenance in Moalboal, Cebu.

“The assistance to our various development partners particularly cooperatives, small and medium enterprises (SMEs), and LGUs in the region is in line with Landbank’s commitment to help launch and implement development programs across the country,” Romarate assured.

Landbank reported its total outstanding loans to priority sectors in the region have reached P6.65 billion as of March 31 this year.

Priority sectors include small farmers and fisherfolk (SFF) cooperatives, SMEs, agri-infrastructure projects of LGUs, agri-business and environment-related projects.

From the P6.65 billion, 44 percent or P2.93 billion went to agri-infrastructure, while 22 percent or P2.11 billion were coursed through SFF cooperatives and other financial conduits such as rural banks, and non-government organizations benefiting 25,283 SFFs.

A total loan extended to SMEs was at P694-million or 10 percent of the region’s total priority sector loans.

Romarate said that around 158 SMEs were extended financial assistance in the region.

He said Cebu will take a huge chunk of the bank’s SME funding this year given the high concentration of micro and small to medium businesses in the province

For MSMEs loan assistance program, the bank is partnering with cooperatives and rural banks as conduits. Small business players can avail of the loan facility offered by LBP through its partner cooperatives and rural bank institutions, such as Cebu CFI Cooperative, Lamac Multi-Purpose Cooperative, among others.