DUE to the massive destruction of public properties in Dagupan, City Mayor Al Fernandez Jr. has already pleaded to the LandBank of the Philippines for a two-year moratorium on the payment of the city government’s outstanding loan.

Pending receipt of the authorization from the city council, Mayor Alipio Fernandez Jr. said he already relayed the request to LandBank board director Albert Balingit and another top ranking official of the government-owned bank.

“I met with LBP Board Director Balingit who was accompanied by a bank regional director, to discuss the city’s dilemma” Fernandez said.

The city government sets aside P70 million in its annual budget for debt servicing to LandBank to pay off the city’s P365 million loan secured by the Lim administration.

The city government borrowed money twice from the LandBank, the first was for the construction of the Malimgas Public Market, and another for the purchase of a dredging machine.

The amortization of the loan is automatically deducted from the entire Internal Revenue Allotment of Dagupan each year under a system called “IRA intercept”.

He said a two-year moratorium will enable the city government to cover costs for the immediate restoration of facilities that were damaged by the howlers.

Among those damaged, he said, were government offices and buildings, the city’s traffic lights and streetlights.

The city could not proceed to repair the damaged structures and facilities since there is no appropriation provided for these in the 2008 annual budget.

However, he said it is up to the city council, headed by Vice Mayor Belen Fernandez, to decide on whether the city should seek moratorium on the payment of the principal or interest or both for a period of two years.—LM

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