Government-owned Land Bank of the Philippines led by bankero Cecilia Borromeo has approved P30.96 billion worth of loans to help cooperatives and local businesses recover from the impact of the COVID-19 pandemic.
Borromeo said Landbank recognizes the crucial role of local businesses to ramp-up the country’s ongoing economic recovery.
“We will continue to provide timely and accessible credit assistance to serve their financial requirements amid the pandemic and beyond,” Borromeo said.
Through the I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19) Lending Program, Landbank has supported a total of 687 borrowers, composed of 462 micro, small and medium enterprises (MSMEs), 115 cooperatives, 105 large enterprises, and five microfinance institutions (MFIs).
Launched in April 2020 at the height of quarantine restrictions to stem the rising COVID-19 infections, the I-RESCUE Lending Program aims to provide credit and loan restructuring assistance to businesses adversely affected by the pandemic, under more flexible terms and conditions.
Under the program available until the end of 2022, eligible borrowers may borrow up to 85 percent of their emergency or permanent working capital requirements, with an affordable interest rate of five percent per annum for three years, subject to annual re-pricing thereafter, and payable up to 10 years with a maximum of two years grace period on the principal repayment.
It also offers a sub-credit facility for MSMEs and cooperatives, as well as self-employed individuals duly registered with the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC), classified as critically affected by the pandemic.