LANDBANK, LGUs Tie Up for Economic Recovery Loan Program Vs Pandemic

The Land Bank of the Philippines (LANDBANK), together with the Union of Local Authorities of the Philippines (ULAP), the League of Provinces of the Philippines (LPP), and the League of Cities of the Philippines (LCP) are working together to ensure extensive dissemination and coordination for the availment of the newly launched RISE UP LGUs (Restoration and Invigoration package for a Self-sufficient Economy towards UPgrowth for LGUs) lending program for eligible Local Government Units (LGUs) in the country.

LANDBANK allotted an initial P10 billion for this program, which offers credit assistance to provincial, city, and municipal governments to finance developments and innovative programs in their localities.

The partnership was formalized with the signing of a Memorandum of Understanding (MOU) in a virtual launch event during a special meeting of ULAP member-leagues and officers on July 29, 2020.

LANDBANK President and CEO Cecilia C. Borromeo and ULAP National President and Quirino Governor Dakila Carlo E. Cua led the virtual signing, together with LPP National President and Marinduque Governor Presbitero J. Velasco, Jr., and LCP Secretary General and Calapan Mayor Arnan C. Panaligan. Also present during the event was League of Municipalities of the Philippines (LMP) National President and Narvacan Mayor Luis C. Singson who expressed his support to the provisions provided in the MOU.

Under the MOU, ULAP, LPP, LCP and LMP will disseminate information on the RISE UP LGUs Lending Program to its member-LGUs. LANDBANK, for its part, will provide reference and information materials, and quickly respond to queries, as well as attend invitations of LGUs to discuss RISE UP LGUs and other available lending programs.

“Through the RISE UP LGUs Lending Program, our aim is to help you revitalize struggling businesses, restore investor-confidence in your respective localities, and promote local development. LANDBANK is here to help you grow into more sustainable and self-sufficient communities that can withstand the impact of future crises,” LANDBANK President and CEO Borromeo said in her message.

ULAP National President Governor Cua said the RISE UP LGUs is “a lending program conceptualized to complement economic stimulus packages that may be developed by the National Government for LGUs.”

“With LGUs feeling the adverse economic impact of the Covid-19 pandemic, this loan program is a way we can help LGUs improve their capacity to provide basic services for their constituents as they respond to the effects of the COVID-19 pandemic, as well as fund support services for local enterprises to stimulate local economies. With the country expected to experience its first economic recession in two decades, interventions are needed to help prop local businesses and create alternative economic opportunities. RISE UP LGUs should help capacitate LGUs to do just that,” Governor Cua said.

Under the RISE UP LGUs Lending Program, eligible LGUs can borrow a loan amount depending on their project requirements, provided that the total loan exposure (including the proposed loan under the program) is not more than its Net Borrowing Capacity per Bureau of Local Government Finance (BLGF) computation/certification.