LBP releases P1.89B loan to 32 LGUs, approves P62B loans to 194

Tabuk City, Kalinga— As of February 2021, Land Bank of the Philippines has released at least P1.89 billion to 32 local governments thru the RISE UP program of the national government.

Under the RISE UP or Restoration and Invigoration package for a Self-sufficient Economy towards UP growth for LGUs, LBP provides financing for infrastructure, and market development to link agricultural products to the market, support for social welfare and health care services, and other projects that provide basic and support services for local enterprise.

Recently, Land Bank has approved more than P62 billion in loans to 194 local government units (LGUs). Due to an increasing number of applications, Land Bank hiked its allocation for Rise-Up LGUs to P80 billion from only P10 billion since it was launched in the middle of last year.

RISE UP program

The RISE UP program was launched on July 29, 2020.

This was strengthened thru the Memorandum of Understanding (MOU) executed to forge the partnership between Land Bank of the Philippines (LBP), Union of Local Authorities of the Philippines (ULAP), League of Provinces of the Philippines (LPP), League of Cities of the Philippines (LCP) and League of Municipalities of the Philippines (LMP).

It is expected that the financial support will help LGUs and their communities from the economic impacts of the longest and most stringent COVID-19 quarantines experienced in the entire country.

Crucial role of LGUs in development

Land Bank President and Chief Executive Officer Cecilia Borromeo remarked, “Land Bank 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.”

Land Bank likewise underscored its 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.

Thus, LGUs wanting to avail of the subsidy must have to make the loan early.

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.

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