Landbank opens P10 billion loan window for LGUs

MANILA, Philippines — State-run Land Bank of the Philippines has launched a P10 billion emergency loan facility to help local government units (LGUs) purchase medical supplies, food items and other basic goods amid the coronavirus disease 2019 (COVID-19) crisis.

In a statement, Landbank president and chief executive officer Cecilia Borromeo said the bank has allocated P10 billion for the Landbank Help via Emergency Loan Assistance for LGUs (HEAL) Program to provide assistance to provinces, cities and municipalities suffering due to the pandemic.

“The HEAL Program is Landbank’s way of supporting our LGUs deliver immediate health services, food, and basic commodities to their constituents during this crisis. Our LGUs are at the forefront of this adversity, and as our partners in development, we will continue to finance their recovery and rehabilitation needs,” Borromeo said.

According to Landbank, all LGUs may borrow under the HEAL Program at fixed interest rate of five percent per annum, payable up to a maximum of five years, with a one-year grace period.

The bank said the facility was made in support of Republic Act 11469 or the Bayanihan to Heal as One Act, which ensures the provision of timely and affordable credit to sectors affected by COVID-19, especially in the countryside.

Earlier, Landbank assured the public that it will continue its banking operations, with select branches in the NCR, Luzon, Visayas and Mindanao to remain open.

However, the bank still urged its clients to utilize the bank’s electronic and digital platforms, instead of going to branches, for their banking needs while the country is under a state of calamity due to the COVID-19 pandemic.

In 2019, the bank booked a total net income of P18.51 billion, 19.57 percent higher than P15.48 billion in the previous year.

Borromeo said 2019 also turned out to be a banner year for Landbank, as it officially became a P2 trillion bank in terms of assets. Last year, the bank’s assets reached P2.03 trillion, eight percent up from P1.87 trillion in 2018, and a new record for the state-owned universal bank.

Landbank said the growth in assets was driven by an expansion in its deposit base, which stood at P1.78 trillion as of end-2019 or eight percent higher than the 2018 level of P1.65 trillion.

Total capital grew by 13 percent to P149 billion from P131.62 billion in the previous year.

Landbank’s gross loan portfolio likewise increased by 2.82 percent to P891.77 billion from P867.29 billion in 2018.