Thursday, August 14, 2008 Council allows mayor to get P142.6M loan vs IRA
THE Davao City council has given City Mayor Rodrigo Duterte the authority to borrow against the city's Internal Revenue Allotment (IRA) differential for the year 2001 and 2004 amounting to P142,624,562.
Under suspended rules Tuesday afternoon, Finance Committee Chair Myrna Dalodo-Ortiz has proposed the resolution that would give the mayor a go-ahead in availing of the loan with any government financial institution which could offer the most beneficial package to Davao City.
In this case, basically what will be used as collateral would be the Internal Revenue Allotment (IRA) receivable of the city starting in 2009 until 2015 at P20,374,937 per year.
The IRA deferential can be collected by the city based on the National Expenditure Program in 2000 and 2003 which was reenacted in FY 2001 and 2004, thus resulting to the same level of IRA allocation for all local government units for two consecutive years.
Under Presidential Executive Order 723 on May 12, 2008, IRA Differential for 2001 and 2004 will be released in installment basis for a period of seven years starting 2009 up to 2015 or borrow against it with interest.
Davao City opted to take the second choice of availing in advance through a monetization program. (GLP)
