Countryside Loan Fund Programs (CLF I, II, and III)
Program Objectives: A wholesale credit facility from World Bank made available to Participating Financial Institutions (PFIs) for on-lending to eligible private investment enterprises:
– To provide financial support to the rural economies to emerge stronger from the financial crisis and resume sustained rapid economic growth in the near term;
– To support the government in its effort to alleviate rural poverty by accelerating private investments in the countryside to boost productivity, generate employment, and raise income;
– To provide further assistance through additional short, medium, and long term financial resources for viable investments in the rural areas; and
– To generate foreign exchange awareness or savings to improve the country’s balance of payment position.
– Commercial Banks/Unibanks
– Rural Banks
– Thrift Banks
– Non-bank financial institutions
– Sole Proprietorships
– Corporations (at least 70% Filipino-owned)
– Agriculture and agri-related activity;
– Food and agro-processing venture;
– Manufacturing activity that generates employment/export;
– Product distribution activity/Trading;
– Service-oriented project that supports economic activity;
- Environmental protection project;
– Tourism-related project; and
– Property development project:
CLF I & II – Industrial Estate Development.
CLF I, II, & III – Socialized and Low Cost Housing Projects,
Commercial Building for lease with a gross/total floor area of not more than 15,000 sqm., including parking and other
Note: Projects for funding under the CLF Programs must comply with all the laws and regulations of the Philippines related to environmental protection.
Eligible Sub-Project Location:
– CLF I & II – Nationwide; sub-projects located in NCR should be engaged in agriculture and agri-related activities.
– CLF III – Nationwide; sub-projects located in Cebu City and
– NCR should be engaged in agriculture and agri-related activities.
– Working Capital – initial, incremental or existing;
– Fixed Asset Investment – construction, expansion, or rehabilitation of productive facilities excluding land purchase; and,
– Special Financing Package (for CLF III only) – any or combination of the following:
Extension of maturity or grace period of existing loan
Conversion of existing dollar loan to peso loan
Cost overruns due to price escalation/peso depreciation
– LANDBANK to PFIs
Variable Rate – Based on Weighted Average Interest Rate of 91-day Treasury Bills or floor price, whichever is higher.
Fixed Rate – prevailing variable rate plus a 1% premium based on the remaining term of loan with maturity not to
exceed 3 years.
– PFI to Sub-borrower – As negotiated between PFI and the sub-borrower
Maturity / Repayment:
|CLF I||CLF II||CLF III|
|Short Term||Up to one year||Not available||Up to one year.|
|Medium Term||Not available||Up to 2010||Up to five years.|
|Long Term||Not available||–||Up to year 2018|
Monthly or Quarterly payments.
Security: Loans shall generally be secured by tangible collaterals (i.e., Real Estate/Chattel Mortgage, Mortgage Trust Indenture, Hold-out on deposits, etc.) or acceptable guarantees consistent with current banking practices, pertinent laws and BSP regulations.
Wholesale Lending Department
Locals 7338, 2365, 2364, 2797, 2707, 7239
Fax: (632) 528.8503