MANILA, Philippines — The Land Bank of the Philippines (LANDBANK) has released P49.5 billion in loan financing to local businesses in a bid to advance economic development in the country.
In a statement, Landbank said its outstanding loans to micro, small and medium enterprises (MSMEs) reached a total of P49.5 billion as of end-June.
The financing has benefitted over 6,100 borrowers in support of business expansion and acquisition of fixed assets, among others.
Landbank president and CEO Lynette Ortiz said the financial institution remains committed to boosting the MSME sector through the provision of accessible and affordable financing.
MSMEs in the Philippines comprise 99.5 percent of all business enterprises.
They take up 60 percent of all exporters and contribute 25 percent of total export revenues. They also account for 62 percent of total employment in the country.
“We recognize the crucial role of MSMEs in advancing economic development and job generation,” Ortiz said.
“We will continue to work with various government partners to grow our loan portfolio for the sector and open more opportunities for our local entrepreneurs,” she said.
On top of its regular loan facilities, Landbank started the Interim Rehabilitation Support to Cushion Unfavorably Affected Enterprises by COVID (I-RESCUE) lending program dedicated to the needs of MSMEs.
The program, which started when the country was placed under a state of calamity due to the pandemic, targets to fast-track the recovery of local businesses and cooperatives.
To date, Landbank has raised to P60 billion the available loanable fund, with the program extended until end this year to accommodate more potential borrowers.
Further, Landbank is extending financial assistance to women-owned or led MSMEs by financing working capital, construction or renovation of buildings and facilities related to business operations, as well as purchase orders from the borrower’s clients.
It is also financing new and existing franchisees for new business ventures or expansion of existing businesses, covering funding for working capital, fixed asset acquisition, and capital expenditures.
This Press Release has also been published on VRITIMES