Landbank sets up P 3-B bus refleeting loan program

The state-run Land Bank of the Philippines (Landbank) is offering a P3-billion loan facility for fleet modernization so that bus operators can upgrade their units amid a new normal of physical distancing in public transportation.

In a statement, Landbank said the “I-RESCUE for BUS Transport” (Interim REhabilitation Support to Cushion Unfavorably-affected Enterprises by COVID-19 for Better Urban Services Transport) lending program was aimed at public transport cooperatives and corporations that needed to abide by the bus modernization program in Metro Manila.

Through I-RESCUE for BUS Transport, operators of public utility buses can borrow as much as 80 percent of a unit’s acquisition cost.

The loan will carry a fixed interest rate of 5 percent a year during the first three years. It will be payable for a maximum period of seven years, inclusive of a two-year grace period covering the principal, Landbank said.

This ongoing loan program will be available until Dec. 31 next year.

“The I-RESCUE for BUS Transport lending program offers responsive financing to public utility bus operators to invest in new buses equipped with the latest innovative technology,” Landbank president and chief executive Cecilia C. Borromeo said.

“This also forms part of Landbank’s support to the Department of Transportation and the Land Transportation Franchising and Regulatory Board toward building a modernized transport system that provides commuters with safe, reliable, and convenient transportation services,” Borromeo added. —Ben O. de Vera INQ