LAND BANK of the Philippines (LANDBANK) approved over P30 billion in loans as of January to help businesses and cooperatives recover from the effects of the coronavirus pandemic.

The state-run bank lent P30.96 billion to 687 borrowers at end-January, LANDBANK said in a press release on Tuesday. The project, known as I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19), was launched in April 2020.

Broken down, loans went to 462 micro, small and medium enterprises, 115 cooperatives, 105 large enterprises, and five microfinance institutions.

They can borrow up to 85% of their emergency or permanent working capital needs. The program has an interest rate of 5% per year over three years, after which it is subject to repricing. The loan is payable in 10 years and has a two-year maximum grace period on the principal repayment.

The program “aims to provide credit and loan restructuring assistance to businesses adversely affected by the pandemic, under more flexible terms and conditions.” Borrowers may avail of the loans until the end of 2022.

“LANDBANK recognizes the crucial role of local businesses to ramp-up the country’s ongoing economic recovery,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo said.

“We will continue to provide timely and accessible credit assistance to serve their financial requirements amid the pandemic and beyond.”

As of end-January, the bank also approved P101.1 billion worth of loans to 365 local government units to finance coronavirus response initiatives.

LANDBANK posted a net profit of P21.75 billion in 2021, up 27%. — Jenina P. Ibañez

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