MANILA: Similar to the national government, local governments have been ramping up infrastructure development, hence borrowing more to build local public works and health facilities during the prolonged Covid-19 pandemic.
“Based on our data, financing for infrastructure projects is the most common loan purpose in the certificates we issued in fiscal years 2020 to 2022,” Nino Raymond Alvina, executive director at the Department of Finance’s Bureau of Local Government Finance (DOF-BLGF), told The Inquirer last week.Alvina was referring to the certificates of net debt service ceiling and borrowing capacity (CNDSCBCs), which the BLGF issues to local governments, which, in turn, submit them to government financial institutions (GFIs) to show that they can repay their obligations.
