The Development Bank of the Philippines has completed disbursement of funds under the P1-billion interest rate subsidy program covering local government units in the implementation of their respective Covid-19 response and recovery interventions, a top official said.
DBP President and Chief Executive Officer Michael O. de Jesus said a total of 264 LGUs, of which 69 percent belongs to the second to sixth income class, benefited from the DBP Asenso-Bayanihan Interest Subsidy Fund (ISF) program, which was part of the menu of financial assistance of the national government under Republic Act 11494 or the Bayanihan to Heal as One Act.
“DBP is honored to be a responsive partner of our LGUs as they continue to build back more from the ill-effects of the pandemic. The bank remains steadfast in our commitment to advance the programs of the national government that seek to strengthen and fortify the resiliency of our LGUs against future challenges,” de Jesus said.
RA 11494 mandates government financial institutions to provide subsidies to LGUs for new and existing loans availed for the implementation of their respective COVID-19 response and recovery interventions such as permanent working capital and acquisition of agricultural equipment and construction.
De Jesus said through the DBP Asenso-Bayanihan ISF program, LGUs were able to conserve financial resources for interest payments, which were channeled to other essential developmental projects that helped create opportunities amidst the slowdown in the national economy. – Press release