Bank reminds City of SRP amortization

THE Land Bank of the Philippines (LBP) is asking the Cebu City Government to pay its due with the Japan International Cooperation Agency (Jica) for the loan in developing the South Road Properties (SRP).

This, as the City also sent a reminder to Filinvest Land Inc. (FLI) to remit its payment for the property in the SRP.

City Treasurer Diwa Cuevas said that the LBP is asking the City to pay some 454 million yen, its amortization for the month of February.

The City remits its amortization to the SRP loan twice a year.

"They only reminded us because our due date is near," Cuevas said. Payment to LBP, Jica's conduit bank, is on Feb. 20. "Right now, we still don't know how much we will be paying because it will be converted to peso on the day of the due date yet,” said Cuevas.

The City still has a balance of P3.65 billion from the principal amount of the loan, P1.15 billion for the interest and P180 million for the guarantee fee.

LBP collects one-percent guarantee fee for the loan.

Mayor Michael Rama wants to convert the SRP loan from foreign to domestic to get rid of the conversion difference.

But since the City Council has not decided on the loan conversion, Cuevas said that the City is required to pay the usual amount of P100 million to P150 million.

"We have an impending due date that is why we will still pay the normal amount but hopefully, by August this year, the conversion will take effect and we will be paying less,” said Cuevas.

On the other hand, Cuevas also said that the City reminded FLI to pay its amortization.

"It is just a verbal reminder, I just have to remind them because their due date is this month," Cuevas said.

FLI purchased a 10.6-hectare lot in the SRP aside from the joint venture it entered with the City Government to develop a 40-hectare property.