The Land Bank of the Philippines is hoping to extend its microfinance program to rural banks in the Visayas to enable more institutions to avail of its initial P300 million credit line.

Stella Maris Yusay, LBP first vice president for Visayas, said in her recent visit to Bacolod City that their bank recognizes that rural banks are best placed to engage in microfinancing.

Yusay said that the microfinance program, one of the two newest lending facilities of LANDBANK opened for rural banks, was launched in response to the call of government for greater and consolidated support for the microfinance sector.

She said it is intended for microfinance institutions or MFI retailers such as cooperatives, non-government organizations, and countryside financial institutions.

The long-term and short-term loans aim to promote the active participation of MFIs in delivering credit to the poor who have little or no access at all to the formal financial system and strengthen partner MFIs in their operations, Yusay said.

Meanwhile, Yusay said that while there is a large demand for credit in the countryside but resources are limited, LANDBANK has been offering a wide range of affordable lending, investment and correspondent banking services to pump-prime rural finance.

Its rediscounting program, the centerpiece of LANDBANK's programs for CFIs, has a term-loan rediscounting facility that supports projects geared towards sustainable rural development over the long-term, she said.

Yusay said that the Equity Infusion Program is also offered to boost the capital base of accredited CFIs.*NLG

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