State-owned Land Bank of the Philippines has allotted P30 billion to aid rehabilitation efforts and to help victims recover from destruction brought about by natural calamities.
The Asian Development Bank (ADB), for its part, will provide financing for the Philippines through grants and emergency loan to help communities to recover from the damages brought by Super Typhoon Yolanda.
In a statement, LandBank said that the amount will be released under its Calamity Rehabilitation Support (Cares) program, to support of the government’s continuing effort to restore economic and social activities and accessibility in calamity-affected areas.
“Through this program, LandBank helps those gravely affected by typhoons, floods, earthquakes and other calamities get back on their feet and rebuild their lives,” said Gilda Pico, LandBank president and chief executive officer.
The bank noted that under the Cares program, existing customers may avail of loan restructuring. Short-terms loans may be extended up to a maximum of three years, inclusive of a maximum of one-year grace period on principal payment.
For term loans, tenor can be extended for additional three years over the remaining term of the loan at the time of calamity, with a maximum grace period of three years on principal payment.
Meanwhile, the LandBank said that both existing and new customers may also avail themselves of rehabilitation credit programs. Eligible borrowers include local governments, home buyers, small and medium enterprises (SMEs), cooperatives and nongovernment organizations (NGOs) and countryside financial institutions (CFIs).
The bank noted that local governments may avail of loans for repair of existing facilities or equipment, and construction or acquisition of new facilities or equipment.
Home buyers may avail of loans under the LandBank Cares-Lingkod para sa Pabahay (Lingap) Program for repair of existing housing units or construction, or purchase of new ones at a fixed interest rate of 5 percent per annum for the first year and 6 percent per annum, fixed for the second to fifth year.
SMEs in need of additional working capital or financial assistance for repair of existing facilities and purchase or acquisition of new ones may avail of loans under the “LandBank Cares Program-Kaagapay sa Negosyo [KaNegosyo]” at a fixed interest rate of 6 percent per annum.
On the other hand, cooperatives and NGOs, may in turn avail of either livelihood financing to augment their credit fund for on-lending to small farmers and fisherfolk (SFFs) or MSME members and sub-borrowers or home lending, to provide them with additional credit fund for the housing loan requirements of their members/borrowers.
CFIs may avail of short-term or long-term loans to augment their working capital for on-lending and rediscounting to SFFs and MSMEs and other types of borrowers. Interest rate for the term loan is fixed at 4.5 percent per annum.
ADB, for its part, said that it will provide $23 million (about P900 million) in grants to the Philippines to address the immediate needs of communities affected by Yolanda.
Of the $23 million, $3 million will come from the Asia Pacific Disaster Response Fund, ADB’s emergency assistance facility, and $20 million from the Japan Fund for Poverty Reduction, a trust fund financed by the government of Japan.
“We are working in close collaboration with the government and all other international agencies to provide hope and rebuild the lives of more than 11 million people affected by what is being described as one of the Philippines’ worst ever natural disasters,” said ADB President Takehiko Nakao.
The lender also stands ready to provide a $500-million (about $21-billion) quick-disbursing program loan to help reconstruct communities devastated by Yolanda. Furthermore, ADB said that it will work with bilateral and multilateral development partners for timely and effective reconstruction, as well as exploring other ways of mobilizing resources including the establishment of an ADB-administered multi-donor trust fund.
ADB also mentioned the creation of Super Typhoon Yolanda Response Team, which is made up of 40 senior staff members from across the bank with experience in post-disaster situations, to coordinate with the government and development partners. The team will soon be engaged in a comprehensive damage and needs assessment for recovery and rehabilitation.
“ADB will provide full support to the people and the Government of the Philippines together with other development partners, to speedily implement both needed relief and reconstruction—especially as the Philippines is our home,” Nakao said.