Local governments borrowed a total of P19.7 billion in the first half of 2022, mainly to finance infrastructure projects.

Data from the Department of Finance's Bureau of Local Government Finance (DOF-BLGF) on Friday showed that the agency issued 111 certificates of net debt service ceiling and borrowing capacity to the same number of local governments from January to June. As proof of their capability to repay loans, local governments must secure these certifications before they can borrow from government financial institutions.

Local government-borrowers during the first six months were three provinces, 22 cities, 81 municipalities and five barangays.

The BLGF said these 111 local goverments had a total borrowing capacity of P43.9 billion, which meant they would unlikely default on their obligations.

As of end-June, cities had the biggest combined loan requirement worth over P8 billion and the largest total borrowing capacity of P24.7 billion.

In the month of June alone, nine local governments—one province, two cities and six municipalities—borrowed P2.6 billion. June's local government-borrowers had a combined borrowing capacity of P5.7 billion or twice higher than the total amount of loans they sought.

BLGF data showed that the nine local government borrowings last month were for infrastructure projects, such as construction of roads and bridges, hospitals and health centers, public markets, barangay halls, flood control and drainage, water supply systems, covered basketball courts and for the purchase of heavy equipment, among others —BEN O. DE VERA INQ