Government bank sets aside P500M loan portfolio for Davao
Subscribe Now December 04, 2010 at 12:37am
LBP has set aside a total of P50 billion for its nationwide credit program next year, targeting cooperatives, small and medium businesses and local government units. Camilo C. Leyba, LBP vice president and head for Davao Region, said the bank will prioritize small farmers and fisherfolk (SFF) cooperatives, small and medium entrepreneurs (SMEs) and micro-enterprises, agri-infrastracture projects of local government units, agri-related projects of government owned and controlled corporations, livelihood loans, agri-businesses, environment-related projects, socialized housing, schools and hospitals.
According to Leyba, the President's thrust in food production in line with the food supply chain and the private public partnership (PPP) is anticipated to increase by next year and the trust given to LBP to finance producers and finance LGU projects supports Land Bank's "overall commitment to spur growth and progress in the countrysides," he said.
Leyba added that while the bank extends credits to borrowers, its present priority is the region's SFF.
"For cooperatives, we extend loans to them without collaterals. We just need the coop insurance from PCIC (Philippine Crop Insurance Corporation) and assignment of deeds, and there are no minimum or maximum loans," said Charlotte Conde, head of LBP Lending Center.
LBP also reported that the total outstanding loan to its priority sectors in Davao Region has reached P7.08 billion as of October 31 this year, and about 24% (P1.72 billion) went to SFF coops and other financial conduits such as rural banks, irrigators' association and farmers' organizations.
In addition, 30,700 newly assisted farmers and fishermen have benefited from LBP's credit assistance, Conde said.
Meanwhile, the total borrowings by the area's SMEs has reached P506 million as of October 2010, and loans to the region's countryside financial institutions were recorded to reach P577.48 million. Meanwhile, loans to LGUs grew to P4.94 billion from P2.80 billion a year ago.
Leyba also announced that branches of LBP will open in Samal, Toril and Tagum next year.
« Creativity, a bright spot for Davao software developers Peek rallies Texters past Painters in Davao game »