Other Debt Issues
- LGU Bonds – LGU Bonds are issued by local government units to finance specific income generating projects in their locality. The LGU Code of 1991 empowers local governments to borrow for their own accounts. The security for such borrowing may include a mixture of assignment of the income of the LGU, the LGU’s Internal Revenue Allotment (IRA) as well as guarantees from other GOCCs such as the Local Government Unit Guarantee Corporation (LGUGC), among others. Such debt securities are usually long-term in nature and are interest-bearing, with the interest being subject to 20% FWT.
- GOCC Bonds – GOCC Bonds are issued by government owned and controlled corporations to fund specific activities.