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Manila Bulletin devider Business devider Banking & Finance devider LGU borrowing demand swells 20% to ₱19 billion in Q1

LGU borrowing demand swells 20% to ₱19 billion in Q1

Camarines Sur tops at ₱3.5 billion

Published May 13, 2026 06:00 pm  |  Updated May 13, 2026 01:09 pm

At A Glance

  • Local government units (LGUs) are borrowing in larger bulks in the first quarter of the year compared to the same period in 2025, with total financing requirements surging despite a dip in the number of participating units.

Local government units (LGUs) are borrowing in larger amounts during the first quarter of 2026 compared to the same three-month period last year, with total financing requirements surging despite a dip in the number of LGUs needing to borrow.

The latest Department of Finance-Bureau of Local Government Finance (DOF-BLGF) data showed that the number of LGUs that sought certificates of net debt service ceiling and borrowing capacity (CNDSCBCs) from the agency fell to 71 in the first quarter, declining by a tenth from the 79 LGUs recorded during the first quarter of 2025.

BLGF issues CNDSCBCs to LGUs, which then submit the documents to government financial institutions (GFIs) to demonstrate their capacity to repay loans.

Despite fewer LGUs needing to borrow, their total loan requirements for the quarter surged to approximately ₱19.1 billion, swelling by a fifth from the ₱15.9 billion requested in the first quarter last year.

While cities and municipalities saw a decrease in borrowing activity, barangays experienced a notable surge. The number of CNDSCBCs issued to barangays tripled, rising to nine during the period from only three a year ago.

Borrowing remains focused on provincial development. Camarines Sur province in Bicol Region emerged as an outlier during the quarter, seeking ₱3.5 billion in loans for various infrastructure projects and machinery.

This far exceeded the largest single request from the first quarter of 2025, which came from Northern Samar province at ₱1.8 billion.

Major cities also ramped up their financing requirements. Dumaguete City in Negros Island Region (NIR) sought ₱2.2 billion for the construction of a new four-story public market and a city hall extension.

Other significant urban borrowing requests early this year included Ilagan City at ₱1 billion for a medical center and school buildings, and Urdaneta City at ₱500 million for large-scale construction and computerization.

Infrastructure, logistics, and health remained the core priorities for LGU borrowings and spending during the period.

As of end-March, substantial funding was earmarked for hospital construction and medical expansion, such as Eastern Samar province’s ₱1-billion request for Eastern Samar Provincial Hospital in Borongan City and farm-to-market roads (FMRs).

Capiz province also sought ₱1 billion for hospital completion and stadium rehabilitation.

While fewer LGUs are entering the credit market at the start of 2026, those that do are seeking substantially larger loan amounts, reflecting a shift toward high-impact, multi-billion-peso provincial and city modernization projects.

Related Tags

LGUs Debt BLGF DOF-BLGF
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