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MANILA, Philippines—The state-run Land Bank of the Philippines (Landbank) is offering a new loan program for businesses badly hit by natural disasters and other external challenges spilling over locally, including Vladimir Putin’s continuing operation to destroy Ukraine, a major food producer.
In a statement on Sunday, Landbank said its “Nation Serves” (standing for “national assistance towards initiating opportunities to entities amid social and economic reverses which visibly entail shockwaves to businesses”) loan will extend to its borrowers for “additional working capital to strengthen their operations, expand trading facilities, and stockpile supplies and inventories to mitigate the actual or impending impact posed by crises.”
Specifically, this loan program seeks to help those impacted by “economic disruptions caused by natural calamities or man-made conflicts such as the ongoing strife in Europe, civil wars, and disputes among nations,” according to Landbank.
Landbank said the following types of companies can apply for this lending scheme: agri-business, aviation hardware and machine manufacturers, as well as energy and fuel providers.
Firms engaged in manufacturing of armaments, electronics, metals, and medicines, renewable energy, and shipbuilding could also qualify.
Landbank had set aside P50 billion for “Nation Serves.”
“Customers may loan up to 85 percent of the actual need with an interest rate based on applicable Bloomberg valuation reference (BVAL) rate at the time of loan availment, plus spread of not more than 75 percent of the prescribed spread based on the borrower’s credit rating,” Landbank said.
“Landbank aims to bolster the resiliency of key development industries by cushioning the negative impact of economic disruptions. Through the Nation Serves lending program, we will also contribute to preventing price surges on basic commodities as we continue serving the nation,” Landbank president and chief executive Cecilia Borromeo said.