LANDBANK launches P10-B loan facility for typhoon-affected rural banks
The Land Bank of the Philippines (LANDBANK) has launched a loan program to help recover Rural Financial Institutions (CFIs) that were affected by Typhoon Odette last year.
The bank’s loan program named Countryside Financial Institutions – Rehabilitation and Support to Typhoon Odette-Affected Areas or CFI-RESTORE aims to strengthen rural banks by providing them with additional capital to expand their operations and cope with the damage caused by the typhoon. .
Loans secured through the program can also be used to provide credit to people affected by the typhoon.
“Faced with the unprecedented financial challenges caused by the calamities, LANDBANK is ready to help CFIs maintain their operations. This is part of our commitment to advancing local recovery and helping build more resilient communities nationwide,” LANDBANK President and CEO Cecilia C. Borromeo said Sunday.
Under CFI-RESTORE, LANDBANK will support CFIs in six regions previously placed by the national government in a state of calamity due to Typhoon Odette. These include MIMAROPA (Region IV-B), Western Visayas (Region VI), Central Visayas (Region VII), Eastern Visayas (Region VIII), Northern Mindanao (Region X), and CARAGA (Region XIII).
Borrowers can guarantee up to 85% of their actual needs for permanent working capital and capital expenditure, and up to 90% for agricultural loans from sub-borrowers and 85% for non-agricultural loans.
“An interest rate of 4% per annum applies, fixed for the first three years and subject to review thereafter, and payable up to three years for working capital, ten years for capital expenditure and ten years for rediscounting term loans,” the state bank said.
LANDBANK also offers a loan restructuring plan under the program for CFIs with existing lines of credit with the public lender to help them rehabilitate and restore their operational cash flow.
Debtors eligible for the program include rural, savings and cooperative banks. The program will also target CFIs in areas placed in a state of disaster by their respective local government units.
LANDBANK’s net profit in the first three months of the year soared 141% to 13.2 billion pesos from 5.48 billion pesos a year earlier, part of a one-time gain at following its merger with United Coconut Planters Bank, as well as increased interest income from loans and investments. — KB Ta-asan