BY THELMA C. BICARME, PIA
CABARROGUIS, Quirino (September 17)—Union of Local Authorities of the Philippines National President and Governor Dakila Carlo Cua and Landbank president and chief executive office Cecilia Borromeo announced that local government unit (LGU) executives can now make full use of loans and loan subsidies to respond to the challenges of the coronavirus disease 2019 (Covid-19) pandemic.
This after President Duterte signed into law the Bayanihan to Recover as One Act (Bayanihan 2) which provides for a ₱165.5 billion fund for pandemic response and recovery.
The law sets aside ₱2 billion subsidy for the payment of interest on local government loans from state-run banks and ₱1.5 billion assistance to local government units.
In a letter to the officers and members of the League of Provinces of the Philippines, the League of Cities of the Philippines, and the League of Municipalities of the Philippines, Cua and Borromeo informed LGU chiefs about the collaboration of ULAP, government financial institutions (GFIs) and Congress that has made possible the provision of ₱1 billion to Landbank in interest subsidy for loans of LGUs under Bayanihan 2.
The ULAP national president has urged LGU executives to make full use of loans and loan subsidies now available to LGUs to help them respond to the challenges of the Covid-19 pandemic.
“This will be applied under Landbank’s Restoration and Invigoration package for a self-sufficient economy towards UPgrowth for LGUs lending program or RISE UP LGUs which we launched on July 29,” Cua said.
RISE UP LGUs is a lending program that “aims to provide credit financing to LGUs as part of their Covid-19 response and in the implementation of economic stimulus plans to revive local economies.
“The interest subsidy will not only address the request of LGUs for lower interest rates but will also redound to more economic activities and other recovery measures that will benefit your constituents,” the ULAP president said.
Cua and Borromeo advised LGU heads to begin coordinating with Landbank Lending Centers across the country as these are now ready to assist LGUs better understand the details and features of RISE UP LGUs.
“This milestone is a testament to our long-standing partnership in pursuing local economic and social development, thereby contributing to nation-building,” Cua added.