“Be sensitive and don’t just wait.”
Cebu City Mayor Michael Rama said this after the City Council did not consider the proposal of three banks for the conversion of the currency base of the South Road Properties (SRP) loan from Japanese yen to peso.
The mayor at the same time threatened to file another case against the councilors if they continue to ignore the city government’s proposal to convert the loan.
“It’s the people who are suffering. If they don’t act without a request from my Office, then I’ll file a case against them. That is economic sabotage,” Rama told reporters.
Rama is optimistic that the Japan International Cooperation Agency (JICA) will not turn down the plan.
“They have no choice. They should be helpful. Even the Monetary Board should be helpful,” Rama added.
In an executive session last Thursday, an official from the Land Bank of the Philippines (LBP) told the City Council that the city government cannot push through with its plan to convert the loan yet since they need the approval from JICA and the Monetary Board of the Bangko Sentral ng Pilipinas (BSP).
With this pronouncement, the councilors decided not to push through with hearing the proposals of the LBP, Development Bank of the Philippines (DBP) and the Philippine National Bank (PNB).
Councilor Margot Osmeña, chairman of the City Council Committee on Budget and Finance, said although they are open to the idea of converting the loan, they have to follow the process.
She said the City Council will wait for a request from the mayor’s office for them to officially request the JICA and monetary board for the conversion.
But this irked the mayor who pointed out that the councilors already know his utmost interest in converting the loan for the city to save on yearly expenses for interest rates.
It was JICA who granted the city a loan in 1995 to develop the 300-hectare SRP. In that year, the equivalent of the loan was P4.65 billion. The city has been paying P200 to P300 million a year for the principal loan and P150 to P200 million for interest. But as of last year, the city’s remaining balance is around P2.9 billion.