State-owned Land Bank of the Philippines announced that its loans to agriculture and rural development recorded double-digit growth in 2023.
LandBank's AFRD loans are projected to reach PHP825 billion by the end of 2024, driven by the growing requirements for public rural infrastructure and sustainable green projects. I Photo: Philippine Information Agency
The bank reported that its outstanding loans to the entire agricultural value chain amounted to PHP755.1 billion as of end-December 2023, a 23 percent increase from the PHP614.8 billion recorded in the third quarter.
This amount represents about 51 percent of the bank's total loan portfolio last year.
The growth was primarily driven by strategic financing for agriculture and fisheries production, sustainable projects, and public rural infrastructure under Republic Act No. 11901, or the Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022.
LandBank President and Chief Executive Officer Lynette Ortiz stated, "As LandBank’s role in nation-building continues to expand, our commitment to advancing countryside development has remained steadfast."
Ortiz highlighted that PHP255.2 billion was allocated for agriculture, fisheries, and rural development (AFRD)-backed rural infrastructure projects such as public markets, highways, and transport systems, while PHP186.3 billion supported projects to mitigate climate change and promote responsible resource management.
Additionally, the bank provided PHP118.1 billion for the processing of fisheries and agri-based products, PHP70 billion for modernizing farming practices and business processes, and PHP61.6 billion for off-farm and fishery entrepreneurship.
Projects promoting the health and wellness of agri players and beneficiaries received PHP43.4 billion.
Ortiz projected LandBank's AFRD loans to reach PHP825 billion by the end of 2024, driven by the growing requirements for public rural infrastructure and sustainable green projects.
"Through accessible financing and support interventions, we are empowering communities and enriching lives, while boosting the national government's inclusive and sustainable development agenda," emphasized Ortiz.