LGU debt applications hit P8.49B in July

The number of debt certifications issued by the Bureau of Local Government Finance (BLGF) more than tripled in July, covering P8.49 billion in proposed local government borrowing. The BLGF issued 22 new Certificates of Net Debt Service Ceiling and Borrowing Capacity during the month, according to BusinessWorld.

The 22 certificates issued in July were more than triple the seven certificates issued in the same month last year. The certificates indicate the maximum amount that local government units (LGUs) can borrow based on their net debt service ceiling and borrowing capacity, as determined by the BLGF.

The increase in debt applications suggests growing credit demand among LGUs, which may fund infrastructure and other capital projects. The BLGF, an attached agency of the Department of Finance, monitors these applications to ensure local borrowing remains within prescribed limits and sustainable.