DBP extends P38-billion in economic recovery assistance to LGUs

State-owned Development Bank of the Philippines (DBP) has approved P38.28-billion in financing assistance to 110 local government units for the first six months of the year to accelerate implementation of critical infrastructure and socio-economic development in their respective localities, a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said that the funding support was granted under the bank’s Assistance for Economic and Social Development (ASENSO) for Local Government Units (LGUs) Financing Program which was launched in 2020 to boost economic recovery and cushion the impact of the pandemic especially in the countryside.

“Through the DBP ASENSO for LGUs Financing Program, we have fast-tracked the provision of credit assistance to all levels of local governments as they scale up social and economic interventions,’’ Herbosa said. “We are also helping the LGU sector boost their resiliency against future economic downturns.”

DBP is the fifth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.

Since its inception, DBP ASENSO has provided funding assistance to 51 LGUs located in Luzon, 19 in the Visayas, and 40 in Mindanao, which covers programs on agricultural support, health and social welfare including housing, general hygiene and sanitation, information systems, infrastructure facilities, telecommunications, tourism development programs, as well disaster risk reduction and management.

Herbosa said that from January to June this year, DBP has extended interest subsidies totaling P330-milion to 80 LGU-borrowers on both loan interest payments on new and existing loans, which forms part of the government interventions under Republic Act No. 11494 or the Bayanihan to Recover as One Act.

He said that under the program, interest rate subsidy is on a “first-come, first-served basis” with the subsidy ceiling computed based on the approved loan amount or a P10-million cap for provincial and city LGUs, and a P5-million cap for municipalities.

“DBP recognizes that LGUs are the fulcrum of local economic activity,” Herbosa added. “We shall continue to work with the National Government in implementing flexible interventions to support their initiatives to re-establish sustainable and resilient communities despite current challenges.”