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Pangasinan board approves P758-million loan with Land Bank – Espino

Jul 21, 2015 @ 1:46

The provincial board of Pangasinan has approved the P758-million loan the provincial government is seeking from Land Bank of the Philippines (LBP) to fund various infrastructure and development projects in the province.

Pangasinan Governor Amado Espino, Jr. said the Sangguniang Panlalawigan approved on Monday, July 20, the loan agreement, which has a total amount of P758,149,708.38.

Among the projects to be funded by the loan include the asphalting/blacktopping/concreting of provincial roads; reconstruction of barangay bridges; purchase of hospital/heavy equipment; and construction/rehabilitation/repair of hospitals, according to Espino.

The governor said the projects now await the approval and recommendation of the Monetary Board.

“They are in accordance with the approved local development plan and public investment program for calendar year 2014 or the annual public investment program for the current year 2015 of the province,” Espino said.

The term of the loan is 10 years, to be paid quarterly at 5.5 percent fixed interest rate “for three years subject to quarterly repricing from 4th year onwards based on prevailing prime rate plus minimum spread of 1 percent.”

The amount will be taken from the original P1 billion approved term loan of the provincial government with the LBP.

Last year, the provincial government and the LBP held a loan signing agreement for the loan amounting P1-billion, as Pangasinan was cited by LBP for having a good paying status.

Espino noted that the debt service or borrowing capacity of the province as allowed by the Bureau of Local Government Finance is P2.4 billion but only availed of P1 billion.

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He added that the P1-billion loan is just enough and will not affect the provincial government’s statutory obligations like salaries of their employees.

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