Manila City – The Bureau of Local Government Finance (BLGF), in partnership with the Bangko Sentral ng Pilipinas (BSP), the Development Bank of the Philippines (DBP), and the Land Bank of the Philippines (LBP), successfully conducted an enlightening online learning session on Local Government Unit (LGU) Credit Financing. The session took place on 14 June 2023 via Zoom.
Local Fiscal Policy Service (LFPS) Director Ma. Pamela P. Quizon, emphasized the significance of the workshop in enhancing expertise and providing valuable guidance to LGUs. With over 1,700 provinces, cities, municipalities, and more than 42,000 barangays permitted to borrow under the Local Government Code, informed borrowing decisions, fiscal responsibility, and long-term financial stability are of utmost importance. Director Quizon stated, “The goal is to equip you with the necessary tools and insights to support LGUs in making informed borrowing decisions while ensuring fiscal responsibility and long-term financial stability”.
The learning session covered various aspects of LGU credit financing, including bond flotation, LGU loan application, evaluation, and approval processes of lending institutions, Monetary Board Opinion rendering by the BSP, available credit instruments for LGUs, factors influencing interest rates and loan terms, as well as the policies of the BSP and lending institutions on the settlement of obligations and treatment of past due and default loans.
Resource persons for the session included Ms. Sittie Hannisha M. Butocan, Director of the Department of Economic Research at BSP; Mr. Allan R. Bisnar, Vice President of Cebu South Lending Center at LBP; and Mr. Gerard Boz C. Tungol, Assistant Vice President of the Public Sector Department at DBP.
Policy, Planning, Programming, and Standards Division (PPPSD) Chief, Ms Brenda L. Miranda, expressed gratitude to the panel of experts for enriching the learning experience with their knowledge, experiences, and best practices. She encouraged participants to apply their newfound knowledge and insights to their roles within the BLGF, enabling the provision of sound local fiscal guidance and support to LGUs nationwide. Ms Miranda underscored the valuable networking opportunities fostered by the workshop, emphasizing the importance of building relationships, exchanging ideas, and strengthening collaboration among BLGF personnel.
This online learning session is part of the BLGF’s nationwide public information and consultation (PIC) campaigns aimed at raising awareness and knowledge on credit financing concepts and technicalities. The session also focused on the processing of the Certificate of Net Debt Service Ceiling and Borrowing Capacity (CNDSBC) and disseminating information on the BLGF’s role in domestic borrowing.