Citi strengthens partnership with Land Bank with cross border payment solutions

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Citi, through Citibank Europe PLC, has signed an agreement with Land Bank of the Philippines to be the exclusive payment service provider for cross border solutions via Citi’s WorldLink® Payment Services. The partnership enables Land Bank to extend their payment service networks to include over 40 currencies, allowing the government-owned bank to deliver funds to beneficiaries around the globe in the currency that they need.

Citi Philippines CEO Aftab Ahmed (3rd from right) celebrates the partnership with a handshake with Land Bank of the Philippines president and CEO Alex Buenaventura (3rd from left). They are joined by (L-R): Treasury and Trade Solutions country head Arlene Nethercott, Land Bank Treasury and Investment Banking Sector head Carel Halog, Citi ASEAN Treasury and Trade Solutions head Debopama Sen and Corporate and Investment Banking head Vikram Singh.

The partnership was commemorated last November 8 by representatives of Citi and Land Bank of the Philippines, led by Land Bank president and CEO Alex Buenaventura, Land Bank Treasury and Investment Banking Sector head Carel Halog, Citi Philippines

CEO and country officer Aftab Ahmed, Citi ASEAN Treasury and Trade Solutions (TTS) head Debopama Sen, Treasury and Trade Solutions country head Arlene Nethercott, Corporate and Investment Banking (CIB) head Vikram Singh, and CIB Public Sector head Aesha Pabillon.

At the event, Citi and Land Bank recognized the importance of the partnership and potential for the platform to drive improved operational efficiency through cost savings for Land Bank and other government agencies.

“Through this partnership and with the use of WorldLink®, we hope our government agencies will be more efficient, transparent and provide better service to Filipinos here and overseas,” said Land Bank president and CEO Alex Buenaventura.

According to Citi’s ASEAN TTS head Debopama Sen, “We value this partnership with Land Bank and the opportunity to showcase Citi’s comprehensive range of digitally enabled treasury, trade and liquidity management solutions.”

WorldLink®, Citi’s leading cross-border payments solution is used by over 1,200 financial institutions globally, to efficiently make payments in more than 130 currencies and 195 countries. WorldLink® offers an unparalleled solution delivering cost efficiencies, automation, consistent reporting, robust security, and compliance with evolving and complex regulatory requirements.

DepEd, Land Bank ink deal for accessible loans for teachers and employees

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Department of Education (DepEd) gearing up for the benefits of the teachers and employees to avail loans through the Land Bank of the Philippines’ (LBP) Livelihood Loan Facility.

Education Secretary Br. Armin A. Luistro FSC said that this as an excellent opportunity for teachers and other DepEd Employees to improve their financial welfare by availing of low interest rates offered by LBP.

The Livelihood Loan Facility has a fixed interest rate of 10.5% per annum. Employees can borrow the equivalent of up to 8 months of their gross pay but not exceeding five hundred thousand pesos (PhP 500,000) for qualified rank- and- file employees and one million pesos (PhP 1,000,000) for qualified Department Officials. 

The rate offered by LBP is much lower than the rates offered by most private lenders who are accredited under DepEd’s salary deduction program. For a starting teacher borrowing at the maximum amount, the savings in amortization is approximately one thousand pesos (PhP 1,000) per month which goes a long way in increasing the net take home pay of teachers.

DepEd already has a standing agreement with the LBP where the latter facilitates the release of monthly salaries of DepEd employees through Automated Teller Machine (ATM) cards. With this agreement, employees who avail of the Livelihood Loan Facility can receive their loans through their bank accounts. Monthly amortizations towards payment of the loan could be made over-the-counter through salary deductions. 

The DepEd acknowledged that personal loan requirements in most lending institutions, such as necessary collateral and security, have made loans inaccessible. LBP has agreed that these loans shall be secured by the borrower’s assignment of funds such as salaries, allowances, leave credits and other monetary deliverables to the borrower’s bank account. 

To qualify for a loan, borrowers must be regular/ permanent employees of DepEd, between 18 and 62 years of age, and have been in service for at least one year. Because of the nature of the loan it is expected that employees maintain an LBP ATM Payroll account. There are restrictions however. Borrowers should not have any pending criminal or administrative cases against them, must have no pending applications for retirement or due for retirement within the term of the loan. Borrowers must also have a monthly net take home pay of at least three thousand pesos (PhP 3,000). Monthly Net take-home pay refers to the amount after considering all deductions and amortizations of all existing loans including the livelihood loan applied for. 

Aside from Secretary Luistro, other officials present during the Memorandum of Agreement (MOA) signing were LBP President Gilda. E. Pico, LBP Senior Vice President OIC Branch Banking Sector Marilyn M. Tiongson, Department of Finance Secretary Cesar V. Purisima, DOF Undersecretary Jeremias N. Paul, Jr., DepEd Undersecretary for Finance and Administration Francisco M. Varela, and DepEd Regional Directors and Finance Officers from Regions IV-A, IV-B, and NCR.