The Land Bank of the Philippines released over P384 billion in loans to priority sectors in 2015, representing a record-high share of 88.3 percent against the total loans of P434.8 billion to all sectors.
“Pursuing LandBank’s social mandate remains the core of our operations as we continue to pour our resources in favor of the bank’s priority sectors, including farmers and fishers, and microenterprises and SMEs,” LBP President and CEO Gilda Pico said.
“Alongside our thrust to be financially viable and competitive, we strive to keep our focus on bringing access to credit to the marginalized sectors and other development players,” Pico added.
The bank’s priority sectors are the small farmers/agrarian reform beneficiaries and fishers and their associations, microenterprises and SMEs, agri- and aqua-businesses, agri-aqua related projects of LGUs and GOCCs, communications, transportation, housing, education, health care, environment-related projects, tourism, utilities, and livelihood borrowers.
Pico noted the consistent efforts to strengthen LandBank’s credit support, particularly for key sectors and projects with high development impact.
Agribusiness loans grew by 65 percent to P45.4 billion from P27.5 billion in 2014. Outstanding loans to small farmers and fishers increased by 15 percent to P38.7 billion from P33.7 billion. Loans to microenterprises and SMEs grew by 11 percent to P57.3 billion from P51.4 billion.
Loans to the utilities sector reached P62.2 billion, up 19 percent from P52.1 billion, while loans for socialized, low cost, and medium cost housing expanded to P39.5 billion from P37.3 billion. Loans to the transportation sector grew to P27.8 billion from P22.5 billion.
Outstanding loans to LGUs reached P43.6 billion, which financed various agri- and aqua-related projects, priority programs of the National Government, and other developmental projects.
Among government financial institutions, LandBank is the biggest creditor to small farmers and fishers and local government units, and the biggest lender to microenterprises and SMEs.