Land Bank of the Philippines (LANDBANK) said outstanding loans to local government units (LGUs) hit P51.3 billion at the end of September, which it cited as one of its efforts to support the economic recovery following the coronavirus disease 2019 (COVID-19) public health crisis.
The loans were given to 639 LGUs under the bank’s Restoration and Invigoration Package for a Self-sufficient Economy towards UPgrowth for LGUs (RISE UP LGUs) Lending Program, LANDBANK said in a statement Friday.
The state-run bank had earlier doubled funding available to LGUs to P20 billion to help them weather the impact of the pandemic.
LANDBANK said it also provided for a P1-billion interest subsidy for new and existing loans of LGUs in compliance with Republic Act 11494 or the Bayanihan to Recover as One Act, known as Bayanihan II.
“We recognized that LGUs are catalysts for positive change by bringing sustainable development in your respective localities. This is a very good time for the LGUs to consider accessing the credit facilities because we are now experiencing a very low interest rate regime,” LANDBANK President and CEO Cecilia C. Borromeo said.
The RISE UP LGUs program provides credit depending on the project requirements and sets the loan limit at the Net Borrowing Capacity as determined by the Bureau of Local Government Finance (BLGF)
LANDBANK currently serves 81 provinces, 146 cities, and 1,478 municipalities. It is planning to achieve full coverage soon by establishing a presence in the remaining 10 unserved municipalities. — Kathryn Kristina T. Jose