Duterte threatens to shut down Landbank

President Rodrigo Duterte on Monday threatened to abolish the Land Bank of the Philippines if the state-owned lender failed to present a plan to help farmers.

"I am asking Congress, pag wala sila (Landbank), if there is no viable plan for the farmers  and juts all commercial transactions, abolish it and give the money to congressmen for their development funds. Mas makakatulong ba diretso eh," Duterte said in his fourth State of the Nation Address.

The President lamented that the state-owned bank, made to help farmers, was "marred in so many commercial transactions."

"Landbank should go back to land," he said.

"Bumalik kayo where you were created for and that is to help the farmers. Ilang administration na wala," he stressed.

Duterte has given the Landbank until the end of the month to come up with a plan.

"You better decide on that, I will give you until the end of July to give me a [plan] or else, I will ask congress to reconfigure you," he said.

After his speech, Duterte told reporters that Land Bank was established "to serve people who are connected with lands, whether owners or tenants."

"So ‘yang land reform na ‘yan, nandiyan na — most of it. I’m going to complete the land reform whether the land owners like it or not because there are still tenants who are not in possession but the owners of the land control --- they produce and everything," he said.

"Ngayon, isa dito ‘yung mga awardees ng — beneficiaries na may mga binigay na sa kanila, cannot be accepted as collateral. Kasi takot nga hindi nga makabayad tapos hindi mo naman makuha ‘yung pera mo. But that is another thing."

As of first quarter of 2019, Landbank said its loans priority sectors stood at P721 billion, up 20% from P600 billion a year earlier.

Landbank’s priority sectors is comprised of small fishers and farmers; micro, small, and medium enterprises (MSMEs); agri and aqua-projects of local government units and government-owned and controlled corporations; transportation; communications; housing; education; health care; environment-related projects; tourism; and utilities.

Loans to priority sectors represent 93% of the bank’s total loans to all sectors of P778.8 billion. —NB, GMA News