LandBank rolls out P10-B facility for Odette-hit rural banks

State-run Land Bank of the Philippines (LandBank) has rolled out a P10-billion facility for rural banks affected by Typhoon Odette (international name: Rai) that hit the country last year.

Under its program, LandBank said it will provide assistance to countryside financial institutions (CFIs) in six regions that declared a state of calamity due to Typhoon Odette.

LandBank said six regions are covered by the program, including Mimaropa, Western Visayas, Central Visayas, Eastern Visayas, Northern Mindanao, and Caraga.

Dubbed "Rehabilitation and Support to Typhoon Odette-Affected Areas" or CFI-RESTORE Lending Program, the facility provides permanent working capital and capital expenditures.

Moreover, the program covers rural, thrift, and cooperative banks, which can borrow up to 85% of the actual need for permanent working capital and capital expenditure.

It also includes up to 90% of the sub-borrowers’ agricultural loans, and 85% for non-agricultural loans.

The program will have an interest rate of 4% per year fixed for the first three years, subject to repricing.

It will be payable up to three years for working capital, ten years for capital expenditure, and 10 years for term loan rediscounting.

“In the face of unprecedented financial challenges brought about by calamities, LandBank stands ready to assist CFIs to sustain their operations,” President and Chief Executive Officer Cecilia Borromeo said in an emailed statement.

“This is part of our commitment to advance local recovery and help build more resilient communities nationwide,” she added.

Typhoon Odette hit the country in December 2021, leaving P13.8 billion worth of damage to the agriculture sector.

In May, LandBank already launched a P50-billion loan program for businesses hit by natural and man-made calamities such as the ongoing conflict between Russia and Ukraine.

The lender is mandated to promote countryside development while remaining financially viable. It implements the comprehensive agrarian reform program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds. —LBG, GMA News