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THE Land Bank of the Philippines said lending to its priority
clients hit a record last year, as their share exceeded the target
set for the period.
Gilda E. Pico, LandBank chief executive, said
loans to the lender’s priority sectors reached P96.6 billion,
representing 71 percent of its total loan portfolio of P135 billion
at end-December. This was higher than the 65 percent share the bank
was targeting.
Priority sectors of the bank include the small
farmers and fisherfolk, small- and medium-enterprises (SMEs) and
micro enterprises, as well as agribusiness, livelihood, agri-infrastructure
and environmental related projects, she said.
Pico said loans to priority sectors were 17
percent higher than the P82.6-billion lent out in the same period in
2006.
“We are focusing our assistance to identified
sectors which share our vision of making the countryside throb with
life by creating economic activities and generating employment for
the local people,” she said.
The executive said environment-related projects
enjoyed a 367-percent increase in the share of bank loans from P2.6
billion in 2006.
Loans outstanding to farmers and fisherfolk
increased to P18 billion from P17.4 billion, or 4 percent up tick,
while borrowings by microenterprises and SMEs grew 5 percent to
P19.9 billion last year.
Loan releases to small farmers and fisherfolk
registered a 6-percent increase to P18.2 billion from P17.2 billion
in 2006. The bank also financed the transfer of 37,746 hectares
under the Comprehensive Agrarian Reform Program, or 6 percent high
than the 35,598 hectares sold in 2006.
Local government Unit (LGU) also incurred P27.1
billion in loans to finance their major infrastructure projects,
Pico said.
Of the total amount, P17.4 billion financed agri-infrastructure
and other agri-related projects such a farm-to-market roads,
construction or repair of public markets, irrigation systems,
sanitation and drainage and grain system centers.
She said that the remaining P9.7 billion went to
other local development projects, with 45 provinces, 73 cities and
530 municipalities availing of these loans.
“We are targeting to further increase our LGU
penetration rate in terms of loans over the medium term so we can
also reach out to more unserved areas in need of financing,” Pico
said.
For 2008, about P10.9 billion worth of
infrastructure projects of various LGUs are in the pipeline for
financing.
Finally, lending to renewable and other
alternative energy sources reached P5.4 billion, and covered the
financing requirements of hydro-power and geothermal plants and
projects such as ethanol production and power using biomass.
Pico said LandBank is stepping its support
to the sector because of their impact on the country’s sustainable
economic growth and on the environment.
-- Ira Karen Apanay
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