Government-owned Land Bank of the Philippines led by Cecilia Borromeo has launched a new lending program to help fast-track the recovery of countryside financial institutions (CFIs) adversely affected by the onslaught of typhoon Odette last December.
Through the Countryside Financial Institutions – REhabilitation and Support to Typhoon Odette-Affected AREas or CFI-RESTORE Lending Program, Ladnbank will finance permanent working capital and capital expenditures, including the repair and rehabilitation of buildings and facilities, and the repair or purchase of equipment damaged by the typhoon.
The CFI-RESTORE Lending Program can also be used to supplement the funds of CFIs for relending to sub-borrowers affected by the typhoon.
“In the face of unprecedented financial challenges brought about by calamities, Landbank stands ready to assist CFIs to sustain their operations. This is part of our commitment to advance local recovery and help build more resilient communities nationwide,” the bankero said.
Under the program, Landbank will assist affected CFIs in six regions previously declared by the National Government under a state of calamity due to typhoon Odette. These include MIMAROPA (Region IV-B), Western Visayas (Region VI), Central Visayas (Region VII), Eastern Visayas (Region VIII), Northern Mindanao (Region X), and CARAGA (Region XIII).
Eligible borrowers include rural, thrift and cooperative banks which may borrow up to 85 percent of the actual need for permanent working capital and capital expenditure, and up to 90% for the CFIs’ sub-borrowers’ agricultural loans and 85 percent for non-agricultural loans.
An interest rate of four percent per year shall apply, fixed for the first three years and subject to repricing thereafter, and payable up to three years for working capital, 10 years for capital expenditure, and 10 years for term loan rediscounting.
CFIs with existing loans with Landbank may also avail of loan restructuring under the program to rehabilitate and restore their operational cash flow, via extended repayment period.
The program will also cater to CFIs in areas placed under a state of calamity by their respective local government units.