Local government units (LGUs) are urged to tap the various financing and other technical support that the government has made available.
During a webinar hosted by the Bureau of Local Government Finance (BLGF), Finance Secretary Carlos Dominguez 3rd said LGUs "play a key role in revitalizing our economy that has been battered by the [coronavirus disease 2019] pandemic."
"They can help pump-prime the national economy through local public investments," he added as he encouraged local governments to utilize their borrowing capacity to bolster recovery programs.
For instance, the Finance chief said, Republic Act 11494, or "Bayanihan to Recover as One Act," granted additional capital to government banks to provide wholesale financing to rural lenders and microfinance institutions so they can expand lending to small enterprises.
"In addition to these credit facilities, the LGUs can deploy innovative solutions to maximize the use of their available funds," he added.
According to Dominguez, one way is for local governments to sign an agreement with the Philippine Guarantee Corp. to secure the loans they provide. They can also team up with Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines to extend interest subsidies for borrowers in their respective communities.
For its part, the BLFG sped up the issuance of certificates on net debt service ceiling and borrowing capacity to local governments.
Dominguez said the overall process of application, evaluation and issuance of certificates was being done electronically. The department would also continue to provide training programs that aim to raise the competencies of local government treasurers.
"At both national and local levels, we need to optimize our revenue generation powers and improve tax administration. I urge the LGUs to adopt digital technologies for a more responsive governance and efficient delivery of frontline services," he added.
Meanwhile, LandBank President and Chief Executive Officer Cecilia Borromeo said her bank had extended loans to 43 provinces, 83 cities and 513 municipalities, with outstanding loans hitting P51.3 billion as of September 30.
And DBP President and Chief Executive Officer Emmanuel Herbosa presented his bank's Rehabilitation Support Program on Severe Events, which extends financing for rehabilitation efforts of both public and private institutions.
During a webinar hosted by the Bureau of Local Government Finance (BLGF), Finance Secretary Carlos Dominguez 3rd said LGUs "play a key role in revitalizing our economy that has been battered by the [coronavirus disease 2019] pandemic."
For instance, the Finance chief said, Republic Act 11494, or "Bayanihan to Recover as One Act," granted additional capital to government banks to provide wholesale financing to rural lenders and microfinance institutions so they can expand lending to small enterprises.
"In addition to these credit facilities, the LGUs can deploy innovative solutions to maximize the use of their available funds," he added.
According to Dominguez, one way is for local governments to sign an agreement with the Philippine Guarantee Corp. to secure the loans they provide. They can also team up with Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines to extend interest subsidies for borrowers in their respective communities.
For its part, the BLFG sped up the issuance of certificates on net debt service ceiling and borrowing capacity to local governments.
Dominguez said the overall process of application, evaluation and issuance of certificates was being done electronically. The department would also continue to provide training programs that aim to raise the competencies of local government treasurers.
"At both national and local levels, we need to optimize our revenue generation powers and improve tax administration. I urge the LGUs to adopt digital technologies for a more responsive governance and efficient delivery of frontline services," he added.
Meanwhile, LandBank President and Chief Executive Officer Cecilia Borromeo said her bank had extended loans to 43 provinces, 83 cities and 513 municipalities, with outstanding loans hitting P51.3 billion as of September 30.
And DBP President and Chief Executive Officer Emmanuel Herbosa presented his bank's Rehabilitation Support Program on Severe Events, which extends financing for rehabilitation efforts of both public and private institutions.
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