THE Land Bank of the Philippines (LandBank) is extending at least P300 million in loans to Northern Luzon farmers affected by Typhoon Ompong to help them recoup their losses.
The amount was based on LandBank’s initial estimates among the Ompong-affected clients of the bank.
LandBank said it is continually assessing “the extend of damage suffered from the typhoon in order to address clients’ financing needs and provide appropriate assistance.”
“We understand how difficult it is to rebuild and recover after a calamity, which is why LandBank extends loan restructuring and rehabilitation loans to assist our fellow Filipinos, especially farmers, in getting back on their feet,” LandBank President and CEO Alex V. Buenaventura said on October 4.
The P300-million loan would come from LandBank’s Calamity Rehabilitation Support (CARES) program, which is the bank’s flagship calamity assistance programs.
LandBank said it has approved a total loan amount of P4.4 billion under the CARES program in the first half. Of the total amount, P3.8 billion has been released to about 191 borrowers, according to LandBank.
“Of this amount, P1.1 billion was extended to 47 bank conduits [42 cooperatives, four countryside financial institutions or CFIs, one nongovernment organization or NGO], which have extended equally concessional rates to 1,830 small farmers and fishers and 4,984 microenterprises and SMEs,” LandBank said.
Furthermore, LandBank said it would allow its Ompong-affected clients to have their loan accounts restructured or have an extended period to pay their borrowings.
“The payment to existing short-term loan accounts of LandBank customers who were affected by typhoon and other natural or man-made calamities may be restructured or extended up to a maximum of five years,” it said.
“Meanwhile, term loan accounts may also be restructured for an additional five years over their remaining term at the time of calamity. The five-year loan repayment terms shall be inclusive of a one-year grace period [deferred payment] on both principal and interest repayments in order to help the customers focus initially on restoration and rebuilding,” it added.
LandBank said existing and new clients could access the rehabilitation credit fund under the CARES program.
“Cooperatives, CFIs and NGOs may be provided with rehabilitation credit fund for their relending activities to small farmers, fishers, and microenterprises,” LandBank said
“The fund may also be made available directly to small and medium enterprises and local government units for repair/rebuilding, construction and acquisition of new facilities or equipment,” LandBank added.