THE Land Bank of the Philippines reported that its credit support to the local coconut sector under their dedicated financing program has reached P4.27 billion.
The state-run lender said it has cumulatively released P4.27 billion in loans that supported a total of 16 borrowers and 2,601 coconut farmer-beneficiaries under its Coconut Production and Processing Financing (Coco-Financing) Program, which has been in place since 2015.
“The mandate of Landbank has continuously evolved over the years,” Landbank President and CEO Cecilia C. Borromeo said. “Aside from assisting farmers of palay, coconut and other crops, fishers and all stakeholders in the agri-business value chain, Landbank has become a reliable contributor to the national government’s development agenda towards supporting other key economic sectors that promote nation-building.”
The state-run lender said the borrowers are composed of the following: six large enterprises and/or corporations; four small and medium enterprises (SMEs); three cooperatives; two associations; and, one non-governmental organization (NGO)—of which nine have outstanding balance of P1.78 billion.
The Landbank said it developed its Coco-Financing Program to finance projects such as planting or replanting, rehabilitation, fertilization and processing of coconuts and its by-products.
Borromeo said its merger with United Coconut Planters Bank (UCPB) would enhance capacity to serve the whole agriculture sector.
President Duterte has issued Executive Order 142 on June 25, 2021, authorizing the merger between Landbank and UCPB, where Landbank will be the surviving entity.
“Landbank remains optimistic in managing the implications of its impending merger with the United Coconut Planters Bank (UCPB) to its financial profile, as it looks ahead in providing more support interventions for the Philippine coconut sector,” the bank said.
As of June 30, Landbank’s total loans to the agriculture sector reached P223.02 billion. Of this amount, P17.39 billion supported crop production of which P340 million covered financing for the coconut industry.