LANDBANK bags Karlsruhe Award for lending program
FOR the sixth consecutive year, Land Bank of the Philippines (LANDBANK) received a Certificate of Merit at the Karlsruhe Sustainable Finance Awards, this time for its Sikat Saka Program, recognized under the Outstanding Sustainable Project Financing category.
Implemented in partnership with the Department of Agriculture (DA), the Sikat Saka Program provides direct credit to small palay and corn farmers who are not yet members of LANDBANK-assisted cooperatives.
“This program supports the government’s campaign to boost the agriculture sector by providing credit assistance to eligible palay and corn farmers. It also forms part of our thrust to help small farmers improve their income and boost their productivity through retail lending,” said LANDBANK Executive Vice-President Joselito P. Gutierrez, who received the award in a ceremony held as part of the Global Sustainable Finance Conference in Karlsruhe, Germany.
Since the program was implemented in 2012, cumulative loan releases reached P6.223 billion, benefitting 15,702 small farmers. From January to December 2017, P1.803 billion in loans was released to 3,240 small farmerborrowers. Because of the program, the income of each farmer-beneficiary increased by roughly 80% per annum per hectare.
Aside from the DA, various government agencies supporting farmers, such as the National Irrigation Administration, National Food Authority, and Philippine Crop Insurance Corporation, also work with LANDBANK to provide holistic services to the beneficiaries and ensure efficient credit delivery and program sustainability.
Likewise, the Agricultural Guarantee Fund Pool provides guarantee to the loans extended to Sikat Saka borrowers, mitigating the risk involved in lending to the said sector.