LANDBANK hikes fund facility for LGU recovery efforts to P20 billion

LANDBANK recently increased to P20 billion the fund available for local government units (LGU) 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 P10 billion to support provincial, city and municipal LGUs in the implementation of their local economic recovery plans.

“LANDBANK has long established a solid partnership with the LGU sector, 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 CEO Cecilia C. Borromeo.

In a virtual program of the Union of Local Authorities of the Philippines (ULAP) entitled, “#FORWARD Strategy Dialogue Series on Rekindling Local Economic Growth,” Borromeo shared that LANDBANK is gearing up to finance more LGU projects with lower interest rates.

As of October 2, P4.37 billion in loans have been approved for 25 LGUs, while another P17.6 billion for 34 LGUs are currently being processed for approval under the RISE UP LGUs Program.  The facility has a fixed interest rate of 4 percent per annum until December 31, 2022.

In terms of total loans to the LGUs, Borromeo said that as of September 15, 2020, outstanding loans have reached P51.5 billion, covering 43 provinces, 81 cities, and 502 municipalities.

Under Republic Act 11494 or the “Bayanihan to Recover as One Act,” the Bank has also been allotted a P1-billion 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.” Featured resource speakers included Department of Finance (DoF) Secretary Carlos G. Dominguez III, Department of the Interior and Local Government (DILG) Undersecretary Epimaco V. Densing III, DoF Assistant Secretary Antonio G. Lambino II, Bureau of Local Government Finance (DOF-BLGF) Executive Director Niño B. Alvina, and Development Bank of the Philippines (DBP) President and CEO Emmanuel G. Herbosa.

In addition to providing financing, LANDBANK also serves the growing needs of LGUs for more accessible, safe, and convenient electronic banking channels. As of August, a total of P219.3 million in Real Property Taxes, Real Estate Taxes, and business permit payments from 110 LGUs were collected and facilitated through the LANDBANK Electronic Payment Portal and Express Payment System.

As a depository bank, LANDBANK is serving all 146 cities and 81 provinces in the country.

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