Landbank hikes loan facility for LGUs’ recovery programs to P20B

State-run lender Land Bank of the Philippines said Friday it has increased the credit fund available for local government units (LGU) to support their economic recovery efforts amid the COVID-19 pandemic.

In a statement, the Landbank said it hiked to P20 billion the RISE UP LGUs or Restoration and Invigoration package for a Self-sufficient Economy towards UPgrowth for LGUs lending program, which was launched in July.

The program was provided with an initial fund of P10 billion to support provincial, city and municipal governments 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,” Landbank president and CEO Cecilia Borromeo said.

“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,” Borromeo said.

As of October 2, the state lender said it has approved P4.37 billion in loans for 25 LGUs, while another P17.6 billion for 34 LGUs are currently being processed for approval under the RISE UP LGUs program. 

The credit facility has a fixed interest rate of 4% per annum, payable until December 31, 2022.

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

Under Republic Act No. 11494 or the Bayanihan to Recover as One Act, Landbank has been allotted a P1-billion interest subsidy for new and existing loans secured by LGUs.

In addition to providing financing, Landbank said it also serves the growing needs of LGUs for more accessible, safe, and convenient electronic banking channels.

As of August, the bank said 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’s Electronic Payment Portal and Express Payment System.

As a depository bank, the state lender is serving all 146 cities and 81 provinces in the country.—LDF, GMA News