More local government units (LGUs) sought loans in August, with total borrowing requests more than doubling year-on-year to ₱4.4 billion as their borrowing capacity strengthened.
Department of Finance-Bureau of Local Government Finance data showed that 30 LGUs applied for borrowing certificates in August, nearly four times the eight applications recorded in the same month last year.
LGUs’ total legal borrowing capacity also increased to ₱17.1 billion from ₱5 billion a year earlier.
Municipal infrastructure and modernization projects accounted for most of the applications, including new government buildings, public markets, roads, and heavy equipment.
The rise in borrowing capacity indicates that LGUs had sufficient room to meet their financial obligations while funding local development projects.
Source: PhilNews24 | October 2, 2026
