To avert further escalation of prices, government-owned Land Bank of the Philippines (Landbank) offers a new P50-billion loan program for crisis-hit businesses or enterprises
Landbank President and CEO Cecilia C. Borromeo said the new program or “Nation Serves” Lending Program is expected to “bolster the resiliency of key development industries by cushioning the negative impact of economic disruptions.”
“We will also contribute to preventing price surges on basic commodities as we continue serving the nation,” said Borromeo. “Nation Serves” is also an acronym which means “National Assistance Towards Initiating Opportunities to Entities” amidst “Social and Economic Reverses” which “Visibly Entail Shockwaves to Businesses”.
Landbank is hoping that the new loan program will assist enterprises against economic disruptions caused by natural calamities or man-made conflicts such as the ongoing war between Russia and Ukraine, civil wars, and disputes among nations. The conflict between Russia and Ukraine which started in late February has already impacted on both oil and non-oil commodity prices and raising inflation rates across the globe. For the Philippines, inflation rate surged to 4.9 percent in April from four percent in March. The central bank has an average inflation forecast of 4.3 percent for this year, exceeding the two percent to four percent target.
Basically, the lending program provides additional working capital for businesses to “strengthen their operations, expand trading facilities, and stockpile supplies and inventories to mitigate the actual or impending impact posed by such crises,” said Landbank.
“The state-run bank allocated P50 billion for the lending program as a proactive measure to support energy and fuel providers, industry manufacturers of medicines, metals, electronics, and armaments, as well as ship builders, among others,” it added.
Renewable energy developers, agri-businesses, and aviation hard-wares and machine manufacturers are also eligible borrowers.
The bank said borrowers may loan up to 85 percent of total requirement with an interest rate based on applicable Bloomberg Valuation Reference (BVAL) rate at the time of loan availment, plus spread of not more than 75 percent of the prescribed spread based on the borrower’s credit rating.