The Development Bank of the Philippines (DBP) approved P38.28-billion financing assistance to 110 Local Government Units (LGUs) for the first six months of 2021 to hasten the country's economic recovery.

The bank granted the funding support via its Assistance for Economic and Social Development (ASENSO) for LGUs Financing Program launched in 2020 to cushion the impact of the pandemic, especially in the countryside.

“Through DBP ASENSO, we have fast-tracked credit assistance to all levels of local governments as they scale up social and economic interventions,’’ noted DBP President and Chief Executive Officer Emmanuel G. Herbosa.

“We are also helping the LGU sector boost their resiliency against future economic downturns,” he added.

Since its inception, DBP ASENSO has provided funding assistance to 51 LGUs in Luzon, 19 in the Visayas, and 40 in Mindanao.

It benefitted programs on agricultural support, health and social welfare including housing, general hygiene and sanitation, information systems, infrastructure facilities, telecommunications, tourism development programs, as well disaster risk reduction and management.

From January to June this year, DBP has extended interest subsidies totaling P330-milion to 80 LGU-borrowers on both loan interest payments for new and existing loans.

This is part of the government intervention under Republic Act No. 11494 or the Bayanihan to Recover as One Act.

Under the program, interest rate subsidy is on a “first-come, first-served basis” with the subsidy ceiling computed based on the approved loan amount or a P10-million cap for provincial and city LGUs, and a P5-million cap for municipalities.

“DBP recognizes that LGUs are the fulcrum of local economic activity," Herbosa underscored.

Hence, "We shall continue to work with the National Government to re-establish sustainable and resilient communities despite current challenges.

#DBP FUNDING FOR LGUs

DBP grants LGUs P38-B economic recovery assist