LAND BANK of the Philippines (LANDBANK) said it approved over P100 billion in loans to local government units (LGUs) to finance their coronavirus response initiatives, or about two-thirds of its loanable funds for pandemic-related LGU projects.
LANDBANK approved P101.1 billion worth of loans to 365 LGUs as of the end of January, the bank said in a statement on Sunday. The LGU coronavirus disease 2019 (COVID-19) lending program was launched in July 2020.
The lending program’s funding is P150 billion, raised drastically from the initial P10 billion, in order to accommodate more LGU needs.
Eligible uses for funding from the RISE-UP LGUs program, or Restoration and Invigoration package for a Self-Sufficient Economy towards UPgrowth for LGUs, include the purchase of produce from farmers in their jurisdictions and the construction of facilities that link products to their markets.
Projects enhancing basic and support services, social welfare, healthcare, and infrastructure are also eligible under the program.
The bank also encouraged LGUs to take advantage of an interest subsidy program.
Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) allotted P1 billion each to state-run banks to provide interest subsidies to LGUs that require additional financing for pandemic recovery programs.
“LANDBANK is the biggest development partner of the LGU sector, with all provinces, cities, and municipalities now maintaining deposit accounts with LANDBANK,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo said.
LANDBANK posted a net profit of P21.75 billion in 2021, up 27%. — Jenina P. Ibañez
