The state-run Land Bank of the Philippines (Landbank) has extended P62.32 billion in loans for projects aimed at local government units’ (LGUs) recovery from the health and socioeconomic crises inflicted by COVID-19.
In a statement on Wednesday, Landbank said it already released P1.89 billion to 32 local governments that borrowed money under its restoration and invigoration package for a self-sufficient economy towards upgrowth for LGUs (Rise-Up LGUs) loan program. The total loan approvals so far covered 194 LGUs.
Due to an increasing number of applications, Landbank hiked its allocation for Rise-Up LGUs to P80 billion from only P10 billion when it was launched in the middle of last year while the country reeled from the longest and most stringent COVID-19 quarantine in the region.
“Through the Rise-Up LGUs lending program, Landbank finances COVID-19 response and recovery interventions, including but not limited to the purchase of agricultural produce, acquisition of equipment and construction of facilities for linking of products to the market, and other programs and projects of the LGU that provide basic and support services, social welfare, health care and other infrastructure activities,” it said.
“Landbank recognizes the crucial role of LGUs in the whole-of-nation approach to recover from the economic downturn caused by the pandemic. We are fully committed to finance local development projects toward generating jobs and jumpstarting the local economy,” Landbank president and chief executive Cecilia Borromeo said.
Also, Landbank was extending an interest rate subsidy worth P1 billion to LGU-borrowers until Dec. 31, 2022 or when the fund gets depleted, under the Bayanihan to Recover as One Act or Bayanihan 2 Law.
“The interest subsidy is subject to a maximum limit of 2 percent per annum of the approved loan amount or P10 million per province and city, and P5 million per municipality, whichever is lower,” Landbank said.