The League of Cities of the Philippines (LCP) Secretary-General and Calapan City Mayor Arnan Panaligan signed the "LGU-Land Bank of the Philippines RISE UP Memorandum of Understanding" at the joint launch of the RISE UP LGUs Lending Program held during the online meeting of the Union of Local Authorities of the Philippines on 29 July 2020.
RISE UP LGUs, or “Restoration and Invigoration Package for a Self-Sufficient Economy Towards UPgrowth for LGUs,“ was created by the Land Bank of the Philippines (LBP) to boost the capacities of LGUs in responding to the ongoing COVID-19 pandemic. The lending program aims to revive local economies by providing LGUs financial assistance in the form of loans to enable local governments to continue providing basic services and implement innovative programs in their localities.
An initial PHP 10 billion was allocated by the LBP for the said program and will be offered to provincial, city, and municipal LGUs with a fixed annual interest rate of 4.5\% for the first year and a collateral that should not exceed 20\% of an LGU’s internal revenue allotment.
LBP President Cecile Borromeo asserted the bank’s commitment to partner with LGUs for their recovery programs, which they have done previously for local governments affected by Super Typhoon Yolanda in 2013 and the Siege of Marawi in 2017. "As your long-time partner, Land Bank has developed the RISE UP program to support your journey to recovery and funding economic recovery plans,” Borromeo said. “The RISE UP program aims to support LGUs to revitalize local economies, restore investor confidence, and promote local development. Land Bank is here to help you grow into self-sufficient communities that can withstand the impact of future crisis."
In his statement, LCP Secretary General Mayor Panaligan underscored how local government units play a key role in coordinating different actors to reactivate economic development systems. He expressed the full support of the League to the objectives of the lending program and acknowledged the latter’s potential to provide the necessary impetus to invigorate local economies.
"RISE UP LGUs Lending Program highlights the power and capacity of local government units, specifically cities, to provide answers at critical moments for employment and economic activity," Panaligan said.
"This lending program will allow cities to create more strategic, forward-looking socio-economic recovery trajectories to build back better in a more inclusive and sustainable basis," he added.
As part of the responsibilities in the Memorandum of Understanding, the League of Cities of the Philippines will be disseminating information on the availability of the RISE UP LGUs Lending Program of LBP to member cities.