MANILA, Philippines — State-run Land Bank of the Philippines (Landbank) has released a P50 million loan to build a bridge in La Union.
According to Landbank president and CEO Cecilia Borromeo, the bridge would link seven barangays in Aringay, a second class municipality in La Union.
The local government of Aringay availed itself of the financing facility through the Landbank’s Restoration and Invigoration Package for a Self-sufficient Economy Towards Upgrowth for LGUs, or the RISE UP LGUs program.
The credit facility extends loans to local government projects.
“Landbank is fully committed to servicing the infrastructure requirements of our LGU partners to fast-track the recovery of local communities,” Borromeo said.
Borromeo said the bank would sustain the financing program through RISE UP LGUs to restart economic activities, especially in the provinces.
Landbank has approved a total of P88.42 billion under the program to fund the delivery of projects initiated by 322 local governments.
Launched in 2020, Landbank’s RISE UP LGUs started with a capital of P10 billion and will run for a period of five years. Under the program, local governments can acquire permanent working capital for social services like the purchase of agricultural produce, as well as term loan for the completion of connectivity projects.
Local governments can borrow as much as they need for as long as their loan exposure settles below their net borrowing capacity. The financing must be paid within three years for permanent working capital and 10 years for term loan.