The Department of Budget and Management (DBM) of the Philippines, a government body that allocates government resources with the intent of promoting the socio-economic development of the country, has announced that it will establish a Credit Support Fund (CSF) of PHP 2 billion (USD 45.7 million) to aid microentrepreneurs through the provision of microfinance in regions that are recovering from the effects of typhoon Haiyan (Yolanda) that affected the country in 2013 [1]. DBM will transfer the funds to the Land Bank of Philippines, a government bank that primarily serves farmers and fishermen, under its Calamity Rehabilitation Support (CARES) program, which aims to help victims recover from natural calamities. The funds will then be made available to microfinance institutions (MFIs) for on lending to small business owners. The fund is expected to assist approximately 416,000 microentrepreneurs.
As of year-end 2012, LBP had PHP 691 billion (USD 15.4 billion) in total assets, a gross loan portfolio of PHP 331 billion (USD 7.38 billion) and deposits worth PHP 273 billion (USD 6.09 billion).
By Nisha Koul, Research Associate
About the Land Bank of the Philippines: The Land Bank of the Philippines is a government bank specializing in serving farmers and fishermen. As of December 2012, Land Bank reportedly had PHP 691 billion (USD 15.4 billion) in total assets, a gross loan portfolio of PHP 331 billion (USD 7.38 billion) and deposits worth PHP 273 billion (USD 6.09 billion).
Sources and Additional Resources:
[1] Department of Budget and Management, News Releases, “Pnoy admin rolls out P2-B for Yolanda-hit Entrepreneurs; Abad: loans aid jumpstarts livelihood recovery,” http://www.dbm.gov.ph/?p=8888
MicroCapital Story, April 25, 2014, “United Nations, Smart Communications, Land Bank of Philippines Use Mobile Money in Recovery from Typhoon Haiyan (Yolanda),” https://www.microcapital.org/microcapital-brief-united-nations-smart-communications-land-bank-of-philippines-use-mobile-money-in-recovery-from-typhoon-haiyan-yolanda/
MicroCapital Story, February 20, 2014, “Arab Gulf Program for Development (AGFUND) Partners with Philippines Chamber of Commerce and Industry (PCCI) to Bring Ibdaa Microfinance Bank to Eighth Country,” https://www.microcapital.org/microcapital-brief-arab-gulf-program-for-development-agfund-partners-with-philippines-chamber-of-commerce-and-industry-pcci-to-bring-ibdaa-microfinance-bank-to-eighth-country/
MicroCapital Story, May 18, 2013, “Land Bank of Philippines Announces Bayadload E-Payment Service for Mandatory Government Contributions,” https://www.microcapital.org/microcapital-brief-land-bank-of-philippines-announces-bayadload-e-payment-service-for-mandatory-government-contributions/
MicroCapital Universe Profile: Land Bank of the Philippines, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Land+Bank+of+the+Philippines
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