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[email protected]Matanao LGU, LANDBANK ink P200M loan financial recovery package
Matanao Mayor Vincent F. Fernandez (2 nd from right) and LANDBANK Davao del Sur Lending Center/DM
Arnel M. Caalim (right) led the ceremonial loan signing for the P200 million financial recovery package,
with Matanao Vice Mayor Alfredo O. Panerio (2nd from left) and LANDBANK Bansalan Branch Head/DM
Raquel U. Dela Cerna as witnesses.
LANDBANK, through Davao del Sur Lending Center, and Matanao Municipality signed six
new term loans totaling to P200 million financial package last March 15, 2021 to
support the economic recovery plan of the local government unit (LGU) which has been
adversely affected by natural calamities and the health crisis.
The financial recovery package was availed under the Bank’s RISE UP LGUs
(Restoration and Invigoration Package for a Self-sufficient Economy towards Upgrowth
for LGUs) Lending Program. Under the Program, the LGU will receive interest subsidy
until December 31, 2022, unless otherwise earlier depleted.
Through the approved loans, the LGU is expected to recover quicker from the previous
operational disruptions, as well as restore its sound fiscal position to one even better
than its pre-COVID days.
One of the term loans will be used to reconstruct Municipal Hall building, which was
financed by the Bank in 2013, after it was severely damaged by the quakes in 2019 and
rendered unusable. Another term loan will be used to acquire heavy equipment for the
ongoing development of road networks and other infrastructure prospects within the
Municipality that is expected to pave way for its continuing economic growth.
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Meanwhile, a part of the loan package will be used for a more aggressive and purposive
implementation of an infrastructure/public market building that will enhance agricultural
production and mobility of goods and people which would benefit the small farmers and
fishers, and micro, small and medium enterprises (MSMEs).
A separate facility was also granted to the LGU to replenish its fund used during the
pandemic, particularly those used in the maintenance of its COVID-19 isolation and
monitoring units, as well as temporary treatment facilities for residents who were either
suspected or tested positive with the virus. This also includes funds used to procure
food subsidy and medical supplies that were distributed to the poorest and most
affected members of the community.
A larger portion of this facility is intended to be used as a stand-in credit line for the
procurement of FDA-authorized COVID-19 vaccine. This is pursuant to the newly signed
COVID-19 Vaccination Program Act of 2021 and other related issuance. LGUs are now
permitted to procure vaccines in accordance with existing laws and issuances including
ancillary supplies and services for their storage, transport, and distribution.
The Municipality of Matanao is known as one of the more progressive towns in the
Province of Davao del Sur. As an agricultural town, it is also recognized as one the
major rice producers in Davao Region. At present, the LGU has a total of 324 small
entrepreneurs, 152 small fishers, and 2,560 small farmers.
The projects by the LGU aims to enhance the economic activities in Matanao, directly
benefiting small farmers and fishers, as well as small entrepreneurs. Matanao Mayor
Vincent F. Fernandez said that the LGU will continue to be one of the most competitive
municipality in Davao Region. – Report from Davao del Sur LC
