Landbank increases bailout line of credit to 50 billion pesos – Manila Bulletin
The government bank, Land Bank of the Philippines (Landbank), said it had increased funding for its LANDBANK I-RESCUE (Interim Rehabilitation Support to Businesses Adversely Affected by COVID-19) program to 50 billion pesos from 10 initial billion pesos two months ago.
In a statement, Landbank said it was now allocating 50 billion pesos to accommodate more borrowers after its first 10 billion pesos were exhausted. It did not increase the funding to 20 billion pesos until last April.
The program, which targets local businesses hit hard by the pandemic, required additional budget to “provide more help with credit and loan restructuring to businesses whose operations have been severely affected by the pandemic, thanks to more flexible loan conditions “.
âSince its launch at the height of the pandemic last year, the I-RESCUE loan program has been widely accepted by borrowers who strive to keep their businesses afloat amid the ongoing crisis,â said Landbank Chief Executive Officer Cecilia C. Borromeo.
Borromeo, who was previously CEO of the Development Bank of the Philippines before returning to Landbank where she rose through the ranks as a senior official, said they would provide “more responsive credit assistance” to accelerate economic recovery.
Landbank will maintain the loan program until the end of 2022. The program also provides the bank’s existing clients with loan restructuring assistance through an additional loan and an extended repayment period, or a combination of means to rehabilitate and restore assets. operating cash flow.
As of the end of May this year, the state bank had approved loans worth 20.95 billion pesos to 460 borrowers. These borrowers include 310 micro, small and medium enterprises, 83 cooperatives, 62 large enterprises and five microfinance institutions.
About 93 percent or 19.53 billion pesos has already been disbursed.
The I-RESCUE loan program allows eligible borrowers to obtain up to 85% of their emergency or permanent working capital needs at an interest rate of 5% per annum for three years, subject to an annual revaluation. The loan is repayable for up to 10 years with a maximum grace period of two years on principal repayment.
It offers a sub-credit facility to MSMEs and cooperatives, as well as self-employed duly registered with the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC), classified as severely affected by the current pandemic. Landbank said.
“Qualified borrowers can borrow a minimum amount of 100,000 pesos or up to 85% of the actual permanent working capital requirement, but not exceeding 3 million pesos, at a fixed interest rate lower than three per year,” without a firm guarantee requirement, and payable for up to three years, âthe bank added.
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