JICA lends LandBank P1.4-B for rural projects

The Japan International Cooperation Agency (JICA) has given the Land Bank of the Philippines a ¥2.8-billion loan for to relending to small banks in the countryside, the bank said Tuesday. The money for relending, equivalent to P1.4 billion, "is available under the Agricultural Credit Support Project (ACSP) that provides financing support for agriculture and agri-related projects," LandBank president and CEO Gilda Pico said. About ¥1.6 billion will be made available to agriculture and fisheries projects that involve 55,000 farmers and fisherfolk, while the equivalent of P1.2 billion will go to small and medium enterprises and agribusiness ventures, the bank said. The funding will likely help improve farm sector productivity and raise farmers’ income by linking producers with the processors and existing markets. The ACSP is also envisioned to create jobs and increase investments in the rural areas. “Our partnerships with international agencies, such as JICA, enable us to widen our reach in the rural communities. This helps us accelerate support for countryside development," according to Pico. Projects eligible for financing by LandBank conduits under the ACSP also include food and agro-processing, farm mechanization, agriculture-related economic activities and product packaging and distribution. The ACSP is a LandBank program that brings in financing support from international institutions, apart from the regular credit assistance the bank extends to priority sectors. The bank said lending to priority sectors now comprises 67.5 percent of its P193.9-billion loan portfolio. As of end-March, loans to farmers, fisherfolk, small and medium enterprises, livelihood programs, and government infrastructure projects reached P130.9 billion from P29.9 billion a year earlier. The increase in loans outstanding to the priority sector was primarily driven by lending to local government units which used the money for infrastructure projects, Pico said. —VS, GMANews.TV