By T.J. Tomas, May 16, 2022; BusinessWorld
LAND BANK of the Philippines (LANDBANK) has launched a P50-billion loan program for businesses and enterprises adversely affected by economic disruptions, including natural calamities and geopolitical conflicts.
The bank’s loan program named LANDBANK National Assistance Towards Initiating Opportunities to Entities Amidst Social and Economic Reverses which Visibly Entails Shockwaves to Businesses or LANDBANK NATION SERVES aims to strengthen businesses by providing additional capital for them to expand their operations or stockpile inventory amid economic and geopolitical crises, the lender said in a statement on Sunday.
It also aims to minimize the impact of economic disruptions, including those caused by the war in Ukraine, civil wars, and other geopolitical disputes.
“LANDBANK aims to bolster the resiliency of key development industries by cushioning the negative impact of economic disruptions,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo said. “Through the NATION SERVES Lending Program, we will also contribute to preventing price surges on basic commodities as we continue serving the nation.”
The state-run bank said this loan program is a “proactive measure” to help key industries, including energy and renewable energy providers, manufacturing of metals, medicines, electronics, armaments, ship builders, agri-businesses, aviation hardware, among others.
“Under the program, customers may loan up to 85% of the actual need with an interest rate based on applicable Bloomberg Valuation Reference rate at the time of loan availment, plus spread of not more than 75% of the prescribed spread based on the borrower’s credit rating,” LANDBANK said.
The state-run bank’s net income in the first three months of the year soared by 141% year on year to P13.2 billion from P5.48 billion due to a one-time gain following its merger with United Coconut Planters Bank, as well as higher interest income from loans and investments.