LAND BANK of the Philippines (LANDBANK) said it has approved more than 100 billion pesos in loans to local government units (LGUs) to fund their coronavirus response initiatives, about two-thirds of its loanable funds for related LGU projects. to the pandemic.
LANDBANK approved for 101.1 billion pesos in loans at 365 LGU at the end of January, the bank said in a statement on Sunday. The LGU Coronavirus Disease 2019 (COVID-19) loan program was launched in July 2020.
Funding for the loan program is 150 billion pesos, drastically increased from the initial 10 billion, to meet more needs of LGUs.
Uses eligible for funding from the RISE-UP LGU, or Restoration and Revitalization for a Self-Sufficient Economy to UPgrowth program for LGUs, include purchasing products from farmers in their jurisdictions and constructing facilities linking products to their markets.
Projects improving basic and support services, social protection, healthcare and infrastructure are also eligible under the scheme.
The bank has 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) allocated 1 billion pesos to each of the public banks to provide interest rate subsidies to LGUs that need additional financing for pandemic recovery programs.
“LANDBANK is the largest development partner in the LGU sector, with all provinces, cities and municipalities now holding deposit accounts with LANDBANK,” said LANDBANK President and CEO Cecilia C. Borromeo.
LANDBANK recorded a net profit of 21.75 billion pesos in 2021, up 27%. — Jenina P. Ibanez