LBP lending up by 12% to P135 B in 2007
The Land Bank of the Philippines became more aggressive in its lending activities last year with its total loans expanding by 12 percent from P120.9 billion in 2006 to P135 billion.
LANDBANK president and CEO Gilda E. Pico said that more than the low interest regime that encouraged borrowings, this was a result of the bank?s strategic efforts to further strengthen its support particularly for key sectors and projects with high development impact. These include food and agri-commodity exporters, agri-based and renewable energy sources, water and environment projects as well as microenterprises and SMEs, countryside financial institutions and local government units.
She added that LBP?s highly successful US$150 million Tier 2 issuance in October 2006 that resulted to a higher capital adequacy ratio of 19.8 percent placed the bank in a better position to expand its credit assistance to its priority sectors. These include the farmers and fisherfolk, microenterprises and SMEs, agri-business, agri-infrastructure projects of LGUs, agri-related and environment projects.
As of end-2007, LANDBANK?s total loans to these priority sectors totaled P96.6 billion, cornering a 71 percent share of its P135 billion loan portfolio. The remaining 29 percent was channelled for other developmental loans.
According to Pico, the expansion in the bank?s loan portfolio is also reflective of the sustained improvement in the Philippine economy and the gains achieved in countryside development.
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