The Muntinlupa City government has finally decided to avail of a low-interest loan being offered by Land Bank of the Philippines after the latter reminded that the program will expire next month.
During the flag raising ceremony on March 21, Mayor Jaime Fresnedi announced that the city government’s finance committee has recommended to use Landbank’s loan program under the RISE UP LGUs Lending Program.
RISE UP means “Restoration and Invigoration package for a Self-sufficient Economy towards UPgrowth for LGUs” that was established by Land Bank as a loan facility for provincial, city and municipal local government units (LGUs). The lending program aims to finance projects of LGUs.
The decision of the Muntinlupa City government came a year after the Muntinlupa City Council passed an ordinance in March 2021 authorizing Fresnedi to enter into a loan agreement with Land Bank in the amount of P1.2 billion to fund various projects.
Land Bank and the city government previously clarified that no amount was taken out from the loan contrary to text messages that were circulated saying Muntinlupa already used the loan facility.
“Many LGUs have already availed of the program,” Fresnedi said on March 21. “Until now we have not made any drawdown out of this P1.2 billion authorized by the city council.”
Fresnedi said Land Bank has sent three letters to the city government. The last letter was sent last March 18 wherein Land Bank reminded the city government that the loan program will end on April 8.
“So we need to make our decision. The finance committee recommended to avail of what is being offered by Land Bank so the city government can avail of the low interest of two percent per year. This week we will submit documents so the opportunity will not be gone,” said the mayor.
He explained that under Land Bank’s loan facility for LGUs, only four percent interest per year will be imposed and out of this, only two percent will be shouldered by the city government.
“Rest assured that that we will avail of will go directly to projects that will benefit the public,” he said.