P4B loan for palay purchase of LGUs approved

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    The Landbank of the Philippines has approved P4.3 billion loans to six local government units (LGUs) for their direct purchase of palay from local farmers and help in improving prices.

    The bank said the Palay ng Lalawigan lending program has approved loans to Nueva Ecija; Tarlac; Camarines Sur; Cabanatuan City, Nueva Ecija; Alicia,Isabela.

    Eligible LGUs of palay-producing provinces may also use the fund to acquire farm machineries and post-harvest facilities and to finance other rice-related activities.

    The loanable amount will be based on the requirement of each project but shall not be more than the net borrowing capacity of the LGU according to the Bureau of Local Government Finance’s computation and certification.

    Interest rates for short-term loan line and permanent working capital under the program will be fixed at 2 percent per annum until Dec.31, 2022 while term loans have an interest rate of 4 percent per annum until the same period but subject to re-pricing. – J. Macapagal