Landbank OKs P31-billion loans for pandemic-hit cooperatives, businesses

State-owned lender Land Bank of the Philippines said Tuesday it has approved loans amounting to P30.96 billion as of end-January 2022 to help cooperatives and local businesses recover from the impact of the COVID-19 pandemic.

In a statement, Landbank said the loans were released under its I-RESCUE or Interim Rehabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19 lending program.

Under the I-RESCUE program, the state lender said it has supported a total of 687 borrowers composed of 462 micro, small, and medium enterprises (MSMEs); 115 cooperatives; 105 large enterprises; and five micro-finance institutions (MFIs).

“Landbank recognizes the crucial role of local businesses to ramp-up the country’s ongoing economic recovery. We will continue to provide timely and accessible credit assistance to serve their financial requirements amid the pandemic and beyond,” said Landbank president and CEO Cecilia Borromeo. 

Launched in April 2020, at the height of quarantine restrictions to quell the rising COVID-19 infections, the I-RESCUE Lending Program aims to provide credit and loan restructuring assistance to businesses adversely affected by the pandemic, under more flexible terms and conditions.

Under the program, eligible borrowers may loan up to 85% of their emergency or permanent working capital requirements, with an affordable interest rate of 5% per annum for three years, subject to annual re-pricing thereafter, and payable up to 10 years with a maximum of two years grace period on the principal repayment.

The program also offers a sub-credit facility for MSMEs and cooperatives, as well as self-employed individuals duly registered with the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC), classified to be critically affected by the pandemic.

Landbank said the I-RESCUE lending program is available until December 31, 2022.