Prov’l board gives Guv ok to negotiate P79.2M loan
LINGAYEN—The provincial board has approved a resolution authorizing Gov. Amado Espino Jr. to enter into a seven-year term loan with the LandBank of the Philippines even if the projects for which the amount will be allocated have yet to be identified.
The loan will be using as collateral the P79.2 million share of Pangasinan in the unreleased 2001 and 2004 Internal Revenue Allotment (IRA).
Under the program called Monetization of IRA Collectibles for Local Empowerment Program (MIRACLE 2 Program), LandBank has presented three schemes upon which the province may opt to collect its more unreleased IRA share.
The seven-year term loan has been identified as the most beneficial option following studies made by the local government’s finance experts.
Sixth district Board Member Alfonso Bince Jr. said the board has its full confidence in the governor to ably negotiate with the bank as members draw up a supplemental budget on how the money will be spent.
The President of the Philippines issued Executive Order no. 723 (2008) authorizing the release of the IRA Differential on installment basis for a period of seven years commencing in fiscal year 2009 up to fiscal year2015 or avail in advance of their respective shares in the IRA Differential through a monetization program.
The Development Bank of the Philippines and LandBank, both government-owned banks, jointly established in 2006 the MIRACLE Program to implement the benefits intended under the EO. #
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