Fresnedi debunks ‘spent’ P1.2B loan
If ever the city will avail of the LandBank standby loan, Fresnedi assured it would be to fund equally meaningful projects that would benefit the people of Muntinlupa
Not that getting a loan is a “bad thing,” but the local government of Muntinlupa City has not yet availed of a P1.2 billion credit facility from Land Bank of the Philippines (LandBank) despite its city council approving a loan application for the said amount, Mayor Jaime Fresnedi clarified Monday.
Fresnedi belied the allegation raised by his critics that a P1.2 billion loan from LandBank has already been fully spent by his administration. He added that the city even has a P2-billion ending balance with the bank, as attested to by the latter.
“This is to certify that per [the] records of this office, [the] City Government of Muntinlupa has no outstanding drawdown as of 31 December 2021,” Lani Pornuevo, LandBank’s head of its loan operations management department.
Fresnedi said that the city council in March 2021 passed an ordinance authorizing him to enter into a loan agreement with LandBank in the amount of P1.2 billion to fund various projects. He said the bank even reminded him twice of the available credit.
“Please remember, getting a loan is not bad when it is used in the right way,” he said, citing as an example the loan he took out during his first ever term as mayor to fund the construction of the Ospital ng Muntinlupa.
If ever the city will avail of the LandBank standby loan, Fresnedi assured it would be to fund equally meaningful projects that would benefit the people of Muntinlupa.
He said the most the city government will pay as interest for any loan is two percent per annum, with the national government paying for the other two percent as the latter pushes a national economic recovery plan anchored on helping businesses grow and people to get jobs.