Cebu City gets P5B loan offer from LBP

The Land Bank of the Philippines has offered the Cebu City government a P5billion standby loan facility to finance the funding requirements of projects included in its annual investment plan this year.

The City Council has invited the LBP officials to explain their offer before the members of the legislative body on the first week of February.

Councilor Raymond Alvin Garcia has already proposed a resolution to authorize Mayor Edgardo Labella to apply and negotiate for a loan with the bank even before the LBP officials' appearance in the council.

Garcia said the amount can be used to finance the projects under the city's AIP. These include the upgrading of the traffic system; COVID-19 response--rehabilitation and recovery; construction of two to three medium-rise buildings for displaced informal settlers; establishment of the Cebu City College; flood control system, among others.

“I did not move for its approval. I moved for them (LBP) to present before the council... It is just a proposal. Silay niduol nato, dili kitay niduol nila. Ato lang nang giklaro,” Garcia explained.

Personally, Garcia admitted that he is in favor of availing the loan facility.

“I cannot say for sure nga ato gyud na siya'ng dawaton. But if you ask me personally, there is really no harm in availing of that loan. Why? Because that loan is a standby loan facility,” said Garcia.

He explained that the city will only pay interest of whatever amount drawn against the P5-billion credit line.

“Og di nimo gamiton, then naa ra na diha nakareserba para nimo. Wa kay bayran bisag usa ka piso sa interest,” he explained.

Garcia said the city has not obtained a loan since the start of the COVID-19 outbreak and does not need one, but since LBP made an offer they will listen to the proposal.

He said the LBP made the offer to the Local Finance

Committee.

“Ilang gi-offer pursuant to the Bayanihan 2 Act nga naa silay low kaayo na interest nga ipanghatag sa mga local government units. Niadto sila sa Local Finance Committee and then nagpresent sila. I told them nga sige I will bring this to the council, if the mayor is okay also with this, and you explain to the council if it is something that Cebu City needs or not,” said Garcia. — Mary Ruth R. Malinao/FPL