Landbank’s loans to LGUs reach P51.3B as of end-September

State-run lender Land Bank of the Philippines said Friday it has extended a total of P51.3 billion in outstanding loans to 639 local government units (LGUs) as of end-September.

This, as Landbank said it ramps up support to the LGUs, which are the frontline entities tasked to lead in the recovery efforts post COVID-19.

Part of the P51.3-billion loan extended to LGUs were made available through Landbank’s RISE UP LGUs or Restoration and Invigoration package for a Self-sufficient Economy towards UPgrowth for LGUs Lending Program, which was launched in July, to support local governments in the implementation of their local economic recovery plans.

Landbank president and CEO Cecilia Borromeo reiterated the solid partnership between the bank and LGUs, and its impact to Filipino families and communities across the country.

“Working together is not something new to Landbank and LGUs. As early as 1992, Landbank resumed lending to LGUs after the enactment of the LGU Code in 1991. We recognized that LGUs are catalysts for positive change by bringing sustainable development in your respective localities,” Borromeo said.

The RISE UP LGUs Lending Program is made available to eligible LGUs at a loan amount depending on their project requirements, provided that the total loan exposure, including the proposed loan under the program, should not be more than its net borrowing capacity.

“This is a very good time for the LGUs to consider accessing the credit facilities or the lending programs of the GFIs (Government Financial Institutions), because we are now experiencing a very low interest rate regime,” Borromeo said.

Under Republic Act 11494 or the “Bayanihan to Recover as One Act,” the state-owned lender has also been allotted a P1-billion interest subsidy for new and existing loans secured by LGUs.

Alongside extending loans, Landbank also serves as the primary depository bank of LGUs.

All 81 provinces, 146 cities, and 1,478 out of the 1,488 municipalities in the country maintain deposit accounts with Landbank.—AOL, GMA News