Gov’t scored over WB loans

THE Anakpawis party-list slammed the administration for its desperate move to settle World Bank loan agreements, amid reports saying the international financing institution has deferred its soft loan the country’s road projects.

According to Anakpawis Rep. Crispin Beltran, the administration of President Macapagal-Arroyo is pushing for the WB loan so it can replenish sources of funds for corruption.

Beltran added that the government needs money to keep its political alliances intact until 2010.

“Malacañang is desperate to settle the WB loan agreement so it can have a replenished source of funds to corrupt. With all other money-making schemes of the Arroyo administration exposed and almost depleted, Malacañang is eyeing all possible sources of funds to keep its beleaguered leadership afloat and keep all its political allies intact until 2010,” he said in a statement.

The refusal of WB to continue with the negotiations for the second phase of the National Road Improvement and Management Program, is a test case for the administration to address the problem of corruption, Beltran said.

Earlier reports said that WB suspended the $232-million loan for the country’s road projects pending its investigation into irregularities in the bidding process and overpricing.

“This is not just a little incident. This will test the extent and seriousness of the graft and corruption record of President Arroyo,” Beltran stressed.

The militant solon added that Macalañang and Budget Secretary Rolando Andaya are playing down the issue but they cannot deceive anti-corruption advocates and the Filipino people who are keeping a close watch on the administration’s corruption record.
Jester P. Manalastas - Journal Online

LandBank opens P3b worth of credit facility

Land Bank of the Philippines has launched a P3-billion wholesale credit facility to support environment and farm projects and small and medium enterprises.

Land Bank’s countryside loan fund, called credit support for the environment, agribusiness and small and medium enterprises, aims to improve the access of borrowers to medium and long-term lending needed for agriculture and environmental projects.

It is also designed to intensify the bank’s support to priority sectors, mainly farmers, fisherfolk and small and medium enterprises.

“Through the CLF-CREAM, we hope to be able to expand our credit outreach and support more high-impact development projects that contribute to job generation, promote environmental protection and support entrepreneurship,” says LandBank president and chief executive Gilda Pico.

The fund is open to commercial, thrift and rural banks as well as nonbank financial institutions accredited under a similar program funded by the World Bank before.

Banks and non-bank financial institutions can re-lend the funds to sole-proprietorships, partnerships and corporations as well as cooperatives and associations that are at least 70-percent Filipino-owned.

LandBank has earmarked P3 billion for the facility, which is available on a first-come, first-served basis. The bank can lend as much as P300 million to a sub-borrower, which can use the funds for working capital and fixed asset requirements.

LandBank reported a net income of P1.05 billion in the first quarter of the year, up 16 percent from a year ago, on track to meet its P4-billion target for the year.

Loan portfolio grew 6 percent to P155.12 billion during the period while deposits expanded 19 percent to P280.83 billion.

LandBank has been shifting loans to priority sectors, specifically farmers and fisherfolk, microenterprises, environment projects and infrastructure, among others.

Loans to priority sectors hit P80.1 billion in the first quarter of the year, accounting for 69 percent of total loans from P77.4 billion or 65 percent in the same period last year.

Pico said the bank had established a P1-billion equity investment program to support microfinance operations in the countryside.