Landbank lends P41 B to businesses for COVID response

State-run Land Bank of the Philippines (Landbank) has released P41.3 billion in loan financing to help local businesses recover from the pandemic since it started three years ago.

Landbank said it has so far approved P41.3 billion under its Interim Rehabilitation Support to Cushion Unfavorably Affected Enterprises by COVID (I-RESCUE) lending program.

The program, which started when the country was placed under a state of calamity due to the pandemic, targets to fast track the recovery of local businesses and cooperatives.

To date, Landbank has financed 825 borrowers nationwide, composed of 549 micro and small enterprises (MSEs), 134 cooperatives, seven microfinance institutions, and 135 large enterprises.

Local businesses, particularly small enterprises, were hardest hit since the pandemic started, with many of them already stopping operations.

Some even had to turn to informal businesses and employment to cope with the impact of the crisis.

Landbank president and CEO Cecilia Borromeo said the bank would continue to support the financial requirements of pandemic-hit businesses and cooperatives to contribute to the overall rebound of the economy.

The I-RESCUE program is designed to provide borrowers timely financial aid at concessional terms, which include a longer repayment period, moratorium on principal and interest payments and lower interest rates.

Under the program, borrowers may loan up to 85 percent of their emergency or permanent working capital requirements.

It has an interest rate of seven percent fixed for one year and subject to annual repricing thereafter.

The program has been extended until end-2023 to accommodate more potential borrowers.