After getting ripped by Duterte, red-faced Borromeo hikes Landbank agri loans by 15%, triples farmer-clients to 3M
The state-owned Land Bank of the Philippines (Landbank) is jacking up
agriculture-focused loans by 15 percent annually to help three
million farmers by 2022.
Landbank President and CEO Cecilia Borromeo said agriculture loans
would reach P265 billion by 2020, up from the P231.25 billion target
for one million farmers this year.
“It’s a consistent growth so by 2022, the portfolio of the bank to the
agriculture sector will reached P350 billion and we should be able to
assist at least three million farmers by then,” she said.
Borromeo was forced to shape up after President Rodrigo Duterte
embarrassed her during the State of the Nation Address for
prioritizing Big Business while giving token loans to farmers.
“That’s why itong (this) Land Bank na ito, ‘pag hindi ito na… You
know, you are called Land Bank but you are now the number one
commercial bank in the Philippines,” Duterte said.
“What the heck is happening to you? You are supposed to finance
agricultural enterprises and endeavors. Bakit wala? Why are you mired
in so many commercial transactions? Bumalik kayo where you were
created for and that is to help the farmers,” Duterte added.
Borromeo was adamant that the bank was compliant with the Agri-Agra
law, with 27 percent of P222 billion total loans currently allocated
to the agriculture sector.
Under Agri-Agra law, banks are required to allocate 10 percent of
their funds for agrarian reform credit (Agra) and 15 percent for other
agricultural credit (Agri).