Land Bank eyed to pay city’s SRP loan fee
THE Cebu City Council wants the Land Bank of the Philippines (LBP) to assume the one percent guarantee fee for the city’s South Road Properties (SRP) loan.
The resolution authored by Councilor Margot Osmeña stated that the one percent guarantee fee will free the city from paying P30 million to the Land Bank every year.
The one percent guaranty fee is computed from the outstanding loan of the SRP which stands at P2.9 billion.
“Elsie Fe Tagupa, Asst. Vice-President – Head Cebu Lending Center of the LBP said the bank is willing to assume the one percent guarantee fee of the outstanding loan to help unburden the city government,” the resolution stated.
Tagupa made the suggestion during last Friday’s council executive session with Land Bank representatives.
Other offers
The assumption of the guarantee fee will be given by the LBP if they will be chosen as the same bank for the planned reconstruction of the loan payment from yen to peso.
Sought for comment, Cebu City Mayor Michael Rama said he will still entertain other proposals from other banks on the restructuring of the loan.
“I will hear the other offers. LBP came in when other banks cropped up. There are proposals from the Philippine National Bank, Development Bank of the Philippines. Let the best offer win,” Rama said.
Vice Mayor Edgardo Labella called on the councilors “to do their homework” in finding ways to deal with the SRP lot sales.
He said the council is still united despite recent political movements, referring to the exit of three councilors from the Bando Osmeña-Pundok Kauswagan (BO-PK) party.
“The decision to depart from an idea, sometimes even an alliance, is a revelation of growth. It must not always be construed as a breach, but an expansion,” Labella said in a privilege speech.
“For my part I maintain that it is the mayor’s prerogative to alienate the city’s properties but that needs to be backed up as well, reasonably and legally,” Labella added.
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