THE Cebu City Treasurer’s Office (CTO) has started processing all the requirements needed so the City Government can take out a P3-billion loan from the Land Bank of the Philippines (LBP).
City Treasurer Tessie Camarillo said they are now working on securing the certificate of maximum borrowing and debt service capacity from the Bureau of the Local Government Finance (BLGF), which is one of the requirements.
Department of Finance’s Local Finance Circular No. 2-2012 said that the certificate will certify the local government unit’s capacity to contract and pay a loan. It will be valid for one year.
“We are now gathering the documents so we can proceed because we already have the City Council resolution. Land Bank is also assisting us in complying with all the requirements needed,” Camarillo told SunStar Cebu.
Last week, the council authorized Mayor Tomas Osmeña to negotiate with LBP for the P3-billion loan in order to fund several infrastructure projects.
The resolution is also one of the requirements set by the LBP. Other requirements include the approved annual investment plan, copy of the this year’s annual budget, audited financial statement of the City for 2016, 2015 and 2014, summary of taxes paid in 2016 and 2015, and the Seal of Good Local Governance and Good Financial Housekeeping, among others.
Camarillo said she is positive that the City can comply with all the requirements.
Allan Bisnar, LBP assistant vice president and head of the Cebu Lending Center, wrote Osmeña last October and offered a P3-billion credit facility to finance various projects listed in the City’s medium term development plan and annual investment plan.
The City wants to use the loan to finance drainage, road concreting, road asphalting and other infrastructure projects. (RVC)