The Land Bank of the Philippines approved loans totaling P62.32 billion for 194 local government units nationwide under its Restoration and Invigoration Package for a Self-Sufficient Economy Towards Upgrowth for LGUs (RISE-UP LGUs) lending program.
Of the amount, P1.89B has been released to 32 LGUs as of Feb. 2.
The RISE UP LGUs program aims to provide the funding requirements of provincial, city, and municipal LGUs to revive their economy and recover from the adverse impact of the Covid-19 pandemic.
The program was launched in July 2020 in partnership with the Union of Local Authorities of the Philippines, with the participation of the leagues of LGUs, namely the League of Provinces of the Philippines, League of Cities of the Philippines, and League of Municipalities of the Philippines (LMP).
Since then, the program has gained wide acceptance by LGUs that the state-run bank has increased its fund allocation from the initial P10B to P80B to accommodate the rising number of loan applications.
Through the RISE UP LGUs program, Landbank finances Covid-19 response and recovery interventions, including but not limited to the purchase of agricultural produce, acquisition of equipment and construction of facilities for linking of products to the market, and other programs and projects of the LGU that provide basic and support services, social welfare, healthcare, and other infrastructure activities.
“Landbank recognizes the crucial role of LGUs in the whole-of-nation approach to recover from the economic downturn caused by the pandemic. We are fully committed to finance local development projects toward generating jobs and jumpstarting the local economy,” said Landbank President and CEO Cecilia C. Borromeo.
The national government, through Republic Act 11494 or the Bayanihan to Recover as One Act, is providing P1B in Interest Subsidy Fund (ISF) for LGU loans obtained from Landbank, which may be availed of until Dec. 31, 2022, unless earlier depleted.
The interest subsidy is subject to a maximum of two percent per annum of the approved loan amount or P10M per province and city, and P5M per municipality, whichever is lower.
Applying the interest subsidy to the RISE UP LGUs lending program, outstanding and succeeding loan releases to LGUs until Dec. 31, 2022 or the depletion of the ISF, whichever comes earlier, will be subject to a fixed interest of four percent per annum inclusive of the two percent per annum subsidy from the national government. Thereafter, the interest shall remain to apply but without any subsidy from the national government.
Landbank is encouraging LGUs to draw on their approved and enrolled loans under the RISE UP LGUs program and take advantage of the interest subsidy.
For updates, follow, like, and share the official Landbank Facebook, Instagram, and YouTube accounts and join our Viber community (@LANDBANK) or visit www.landbank.com. – Press release
April 26, 2024
