LAND BANK of the Philippines (LANDBANK) has doubled its lending to local government units (LGUs) to P20 billion to help them weather the impact of the coronavirus disease 2019.
The bank’s RISE UP LGUs or Restoration and Invigoration Package for a Self-sufficient Economy towards Upgrowth for LGUs Program announced in July was provided just P10 billion in funding initially.
“We recognize LGUs’ critical role as a catalyst in bringing sustainable development in their respective localities.
Now more than ever, let me underscore our continued commitment to support them in revitalizing the local economy one town, one city and one province at a time,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo said in a statement on Friday.
The loans are offered at a fixed interest rate of 4% per annum until Dec. 31, 2022.
The lending program aims to help LGUs purchase agricultural produce and build markets and infrastructures linking vendors to consumers and facilities for health care and other social services.
LANDBANK also provides a subsidy of P1 billion to cover interest payments of new and existing loans of LGUs.
The bank said it approved as of Oct. 2 loans worth P4.37 billion for 25 LGUs, while it is still processing loans amounting to P17.6 billion which will go to 34 LGUs.
Meanwhile, its total outstanding loans to LGUs reached P51.5 billion as of Sept. 15. The amount covers 43 provinces, 81 cities and 502 municipalities. — KKTJ