Government-owned Land Bank of the Philippines (Landbank) said it has released P30.96 billion worth of loans to cooperatives and local businesses as of end January this year.
The loans were availed of through the bank’s I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19) lending program.
Landbank President and CEO Cecilia C. Borromeo said the state-owned bank has a “crucial role” in helping local businesses to get back on its feet to “ramp-up the country’s ongoing economic recovery.”
“We will continue to provide timely and accessible credit assistance to serve their financial requirements amid the pandemic and beyond,” said Borromeo on Tuesday, March 15.
So far, the bank has 687 I-RECUE borrowers, of which 462 are micro, small and medium enterprises (MSMEs). They also helped 115 cooperatives, 105 large enterprises, and five microfinance institutions.
Landbank launched I-RESCUE in April 2020 at the height of the country’s strictest lockdowns to provide credit and loan restructuring assistance to businesses under more flexible terms and conditions. However, the lending program will only be available until December 31, 2022.
Eligible I-RESCUE borrowers can take up to 85 percent of their emergency or permanent working capital requirements, at a five percent per annum rate for three years, subject to annual re-pricing thereafter. The loans are payable up to 10 years with a maximum of two years grace period on the principal repayment.
Landbank said the lending program offers a sub-credit facility for MSMEs and cooperatives, as well as self-employed individuals duly registered with the Department of Trade and Industry and the Securities and Exchange Commission were were critically affected by the two-year pandemic.