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May 27, 2024

Landbank sets P50B loan program for crisis-affected enterprises

State-run Land Bank of the Philippines headed by bankero Cecilia Borromeo has launched a new P50 billion loan offering to assist enterprises against economic disruptions caused by natural calamities or man-made conflicts such as the ongoing strife in Europe, civil wars, and disputes among nations.

The bankero said that the government owned bank would provide additional working capital for businesses to strengthen their operations, expand trading facilities, and stockpile supplies and inventories to mitigate the actual or impending impact posed by such crises through the Landbank NATION SERVES (National Assistance Towards Initiating Opportunities to eNtities amidst Social and Economic Reverses which Visibly Entail Shockwaves to Businesses) lending program.

“Landbank aims to bolster the resiliency of key development industries by cushioning the negative impact of economic disruptions. Through the NATION SERVES Lending Program, we will also contribute to preventing price surges on basic commodities as we continue serving the nation,” Borromeo said.

Landbank allocated P50 billion for the program as a proactive measure to support energy and fuel providers, industry manufacturers of medicines, metals, electronics, and armaments, as well as ship builders, among others.

Eligible borrowers also include renewable energy developers, agri-businesses, and aviation hard-wares and machine manufacturers.

Under the program, customers may loan up to 85 percent of the actual need with an interest rate based on applicable Bloomberg Valuation Reference (BVAL) rate at the time of loan availment, plus spread of not more than 75 percent of the prescribed spread based on the borrower’s credit rating.