Land Bank loans to priority sectors up by 10%, reach P176.7B in Q1

Wednesday 27th of June 2012

MANILA, June 27 (PIA) -- Land Bank of the Philippines' loans to its priority sectors reached P176.7 billion as of end-March 2012, 10 percent or P15.9 billion higher than the P160.8 billion registered in the same period last year.

In a statement posted on its website, Land Bank said loans to priority sectors now comprise 73 percent of the Bank's total loan portfolio of P242.2 billion.

"Land Bank continues to reach out to more key players which help spur countryside development. This signifies our commitment to improve the economic conditions of our countrymen in the rural areas," Land Bank president and CEO Gilda E. Pico said.

The priority sectors of Land Bank are classified as the Mandated Sector which covers the small farmers (including agrarian reform beneficiaries) and the small fisherfolk and their associations. The second classification is Support for Agriculture and Fisheries which includes agri-business, aqua-business, and agri-aqua related projects of local government (LGUs) units and government-owned and controlled corporations (GOCCs).

Moreover, sectors classified as Support for National Government Priority Programs are the micro, small and medium enterprises, communications, transportation, housing, education, health care, environment-related projects, renewable energy, and tourism.

Loans for agri-aqua related projects of LGUs and GOCCs have the largest share at 25 percent amounting to P61.12 billion followed by loans to small farmers and fisherfolk at 11 percent amounting to P26.32 billion and loans to microenterprises and SMEs at 10 percent amounting to P25.19 billion.

Meanwhile, for January to March 2012, loan releases to small farmers and fisherfolk reached P7.3 billion, 18 percent higher than the P6.2 billion released last year. The said loan releases were channeled through 535 farmers and fisherfolk cooperatives and 178 countryside financial institutions. More than 134,000 small farmers and fisherfolk nationwide benefited from this credit assistance during the first quarter of 2012. (LB/RJB/JCP-PIA NCR)