Landbank allots P10 B for Odette-hit rural banks

State-owned Land Bank of the Philippines has allocated P10 billion for a new program to help countryside financial institutions (CFIs) to recover from the impact of Typhoon Odette at the tailend of 2021.

Landbank has opened the CFI-Rehabilitation and Support to Typhoon Odetteaffected Areas Lending Program, a P10-billion facility to expedite recovery of rural banks affected by Odette last December.

These CFIs are located in six regions declared by the government under a state of calamity due to the typhoon.

These regions are MIMAROPA, Western, Central and Eastern Visayas, Northern Mindanao, and Caraga.

Through the program, Landbank will finance permanent working capital and capital expenditures of CFIs.

This covers the repair and rehabilitation of buildings and facilities, as well as the repair or purchase of equipment damaged by the typhoon.

The program can also be used to supplement the funds of CFIs for relending to subborrowers affected by the typhoon.

Eligible borrowers include rural, thrift and cooperative banks that may borrow up to 85 percent of the actual need for permanent working capital and capital expenditure.

They may also borrow up to 90 percent for the CFIs’ sub-borrowers’ agricultural loans and 85 percent for nonagricultural loans.

The loan has an interest rate of four percent per year, fixed for the first three years and subject to repricing thereafter.

It is payable up to three years for working capital and 10 years for both capital expenditure and term loan rediscounting.

Landbank president and CEO Cecilia Borromeo said the bank is ready to assist CFIs to sustain their operations in order to fast-track recovery and help build more resilient communities in the country.

CFIs with existing loans with Landbank may also avail of loan restructuring under the program to rehabilitate and restore their operational cash flow, via extended repayment period.

The program will also cater to CFIs in areas placed under a state of calamity by their respective local government units.