Landbank recently increased to P20 billion the fund available for local government units to help revitalize their economies affected by the lockdowns imposed against the Covid-19 pandemic.
The state-owned bank’s RISE UP LGUs (Restoration and Invigoration package for a Self-sufficient Economy towards UPgrowth for LGUs) Lending Program, launched in July this year, was provided an initial fund of P10B to support provincial, city, and municipal LGUs of the implementation of their local economic recovery plans.
“Landbank has long established a solid partnership with LGUs, and we recognize their 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 all LGUs in revitalizing the local economy one town, one city, and one province at a time,” said Landbank President and Chief Executive Officer Cecilia C. Borromeo.
In a virtual program of the Union of Local Authorities of the Philippines entitled, “#Forward Strategy Dialogue Series on Rekindling Local Economic Growth,” Borromeo said Landbank is gearing up to finance more LGU projects with lower interest rates.
As of Oct. 2, P4.37B in loans have been approved for 25 LGUs, while another P17.6B for 34 LGUs are being processed for approval under the RISE UP LGUs Program. The facility has a fixed interest rate of four percent per annum until Dec. 31, 2022.
In terms of total loans to the LGUs, Borromeo said as of Sept. 15, outstanding loans have reached P51.5B, covering 43 provinces, 81 cities, and 502 municipalities.
Landbank has also allotted a P1B interest subsidy for new and existing loans secured by LGUs.
Hosted by ULAP National President and Governor Dakila Carlo E. Cua, the virtual program forms part of the dialogue series focused on “putting fiscal order in place for local economic recovery.” – Press release