Moratorium on loan payments sought by prov’l board
LINGAYEN–With the high cost of rehabilitation work ahead following the extensive damage to agriculture and infrastructure estimated at P4.3 billion brought by Typhoon Cosme, the provincial government is seeking an extension of the loan and a moratorium on the payment of its loans to Land Bank of the Philippines.
The provincial board passed three resolutions last week for authorizing an application for restructuring of the loan and deferment of payment to allow the local government to use the funds instead to finance repairs for damaged structures.
The three resolutions, all sponsored by 6th District Board Member Tyrone Agabas, covers a request for Land Bank to consolidate the existing loan agreements between the bank and the province of Pangasinan; request for suspension of payment of the consolidated loan principal and interest amortizations for the period covering May 2008 to July 2010; and requesting Land Bank to grant an extension of the period of amortization of the existing loans 2013.
The province’s outstanding loan balance due the Land Bank is P327 million. The administration of Governor Victor Agbayani originally availed of two loans worth P350 million and P300 million.
Board Member Alfonso Bince Jr., in an interview with The PUNCH, said the move will particularly benefit the hardest hit areas.
“If we are paying P11 million a month and we will not have to pay amortization, principal and interest until 2010, we will be saving P260 million,” Bince said.
The source for the loan payment is the province’s Internal Revenue Allotment released by the national government on a quarterly basis.
Bince, who previously opposed moves for more loans by the provincial government, said he will now support proposals for loan availment in the aftermath of Cosme.
“We don’t have enough philanthropists in the province,” he said.
Meanwhile, Lisa Melendez, manager of the LandBank branch in the capital town, said in a separate interview that the bank have yet to receive a copy of the request for restructuring and moratorium.
“Any deviation in the terms and conditions (of the loan) must be approved by the top management,” Melendez said.#
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