“It is unacceptable that a public bank meant to improve access to finance in the agriculture sector and support transformative interventions has a $80 million exposure to a giant company which is not even in the agricultural sector while the vast majority of small farmers of fisherfolks are without access to this kind of financing.”
This was the statement of senatoriable Lorenzo ‘Erin’ Tañada in reaction to Landbank’s involvement to the largest corporate default in Philippine banking history due to the bankruptcy of Hanjin Heavy Industries and Construction Philippines.
Landbank, BPI, RCBC, Metrobank, and BDO were among the banks exposed to the giant construction company’s combined loans of $21 billion.
“Access to credit is a major need in the agriculture sector directly contributing to rural development, poverty reduction, and food security. Landbank needs to review its strategic priorities in line with the slowdown in agriculture especially in crops and fisheries subsectors instead of lending to giant companies,” Tañada said.
The decline of 0.4 percent in agriculture during the third quarter of last year pulled the economy down from its growth targets last year. The agricultural sector constitutes 24 percent of total labor and has an underemployment rate is high at 35.5 percent.
“Landbank has the pivotal role to address financing gaps and spur countryside development. It has to drastically increase its development portfolio which remains to be almost insignificant compared with its commercial portfolio.” Tañada said.
The former Deputy Speaker of the House of Representatives said public banks must change its objectives as creating public values. “Public banks cannot keep profits as a barometer of success as they will continue to see smallholder farmers as high-risks,” he added.
Tañada encouraged the banking industry to fulfill its mandate to allocate 25 percent of its loan portfolio to agriculture and agrarian reform under the Agri-Agra Reform Credit Act of 2009. The banking sector allocated only 13.74 percent or P644.64 billion of the total loanable portfolio last year.
“Poor absorptive capacity of smallholder farmers for loans can no longer be an excuse. We need to change our objectives, processes, and risk frameworks when dealing with the poor. Otherwise, we will keep on preferring to lend money to big companies which also come with comprehensive risks to our financial and economic well-being. If farmers cannot borrow money, banks should look at the gaps and address them. Farmers have tremendous needs now and it is impossible to say that they do not need access to credit,” Tañada said.
The World Bank reported that the total loan portfolio of banks from 2010-2015 in the country was 89 percent for construction but was declining for the agricultural sector at -8 percent.
Hanjin pinaboran ng Landbank sa pautang – Tañada
“Hindi ko maintindihan na ang isang pampublikong bangko na dapat tumutulong sa pamumuhunan sa agrikultura para mapaunlad ito ay malulugi ng $80 million dollars dahil sa utang na hindi mababayaran ng isang malaking kumpanya na walang kaugnayan sa pagsasaka. Samantala, hirap pa ring makapangutang sa bangkong ito ang mga maliliit na magsasaka at mangingisda.”
Ito ang pahayang Lorenzo ‘Erin’ Tañada sa pagkakasangkot ng Landbank sa Hanjin Heavy Industries and Construction Philippines, isa sa pinakamalaking kumpanyang naiulat na bankrupt.
Kasama ng Landbank ang BPI, RCBC, Metrobank at BDO sa mga naiulat na pinagkakautangan ng naturang construction company na umaabot $21 billion dollars.
“Ang kakulangan ng kapital at kawalan ng mauutangan ang isa sa pangunahing problemang humahadlang sa pag-unlad ng agrikultura, paglutas sa kahirapan at masiguro ang pagkain ng mamamayang Pilipino. Kailangang pag-isipan ng Landbank ang uunahin nitong pautangin at tulungan – ang agrikultura ba na hindi halos makaahon, lalo na sa mga pananim at pangisdaan o ang mga higanteng kumpanya?” Tañada said.
Bumagsak ang agrikultura ng 0.4 percent noong ikatlong quarter ng 2018 at hinila pababa ang inaasahan sanang paglaki ng ekonomiya ng nasabing taon. Nasa agrikultura ang 24 percent ng kabuuang lakas paggawa subalit napakataas ng underemployment rate na umaabot sa 35.5 percent.
“Malaki ang papel ng Landbank upang malutas ang kakulangan ng kapital para umahon ang pag-unlad sa kanayunan. Kailangang pataasiin ng bangko ang kanyang development portfolio na nananatiling napakababa kumpara sa mga serbisyong binibigay nila sa mga negosyante,” Tañada said.
Ipinahayag ng dating Deputy Speaker ng House of Representatives na kailangang baguhin ng mga pampublikong bangko ang kanilang layunin at sukatan ng kanilang halaga sa pamumuhunan. “Hindi dapat tubo ang batayan ng kanilang paglaki dahil palagi nilang ituturing na high-risk ang mga mahihirap na magsasaka at mangingisda,” dagdag niya.
Hinimok ni Tañada ang mga bangkong tuparin ang tungkulin nilang maglaan ng 25 percent ng kanilang pinauutang sa agrikultura at repormang agraryo sa ilalim Agri-Agra Reform Credit Act of 2009. Naglaan ang banking sector ng 13.74 percent lamang o P644.64 billion ng kanilang kabuuang pautang noong nakaraang taon.
“Hindi na nila pwedeng gamiting palusot ang kawalang kakayahan ng mga mahihirap na magsasaka na ayusin ang kanilang mga utang. Dapat mag-iba na sila ng patakaran para sa mga mahihirap. Kung hindi, patuloy nilang uunahin ang mga malalaking kumpanya. Kailangan ng mga magsasaka ng puhunan at wala silang pagkukunan nito kundi mangutang. Ginagawa na nila ito sa mga usurerong napakalaki ng interes,” paliwanag ni Tañada.