PRESIDENT Rodrigo Duterte has approved the merger between the Land Bank of the Philippines (LBP) and the United Coconut Planters Bank (UCPB) to “strengthen [their] capability to deliver financial services to [the] coconut industry and the entire agricultural sector”.
Executive Secretary Salvador Medialdea, by the authority of the President, signed Executive Order (EO) 142 on June 25, ordering the merger of the two government financial institutions.
“Due in part to their shared objectives and interrelated mandates, the merger of the LBP and the UCPB, with the LBP as surviving entity, was considered and studied; after which, it was found that such merger will significantly strengthen capability to deliver financial services to coconut industry and the entire agricultural sector,” Duterte said in his order.
The merger will also contribute to “economic sufficiency, foster countryside development, and financial inclusion, and promote stability in the country’s banking system,” he added.
Duterte said the plans and projections for the intended merger of LBP and UCPB assume, as one of their premises, that the operational merger between LBP and the Development Bank of the Philippines, previously approved in 2016, will no longer be pursued.”
He said the LBP and UCPB personnel who would be affected by the merger shall be entitled to separation incentives and benefits.
“The personnel of UCPB who may be separated from service as a consequence of the merger, shall be paid separation benefits by the UCPB pursuant to the guidelines it may adopt and applicable laws and rules,” the President said.
“Whenever applicable, such personnel may be hired by the LBP, subject to the possession of the necessary civil service eligibility, and other requirements prescribed for the position,” he added. (C. S. Valente, TMT)
