LandBank claims Sual LGU’s P500M loan “above the board”

Some residents of the town of Sual, in the province of Pangasinan, took to the streets on Monday, November 29, 2021 to protest against the planned bank loan of 500 million pesos granted by the municipal government. (Photo by Yolanda Sotelo)

DAGUPAN CITY – Claiming that all of its loan transactions are “above all board”, the Land Bank of the Philippines (LandBank) reiterated that the 500 million peso loan from the municipal government of Sual, which is opposed by the inhabitants of the city, complied with the standards of the bank. and policies.

In a statement released Thursday, LandBank said the term loan “complies with standards and policies established by the bank as part of its LGU loan program and in accordance with relevant laws, regulations and policies.”

The government finance institution said that the local government can benefit from credit facilities to finance local infrastructure and other socio-economic development projects in accordance with the approved local development plans and public investment program.

“(This is) subject to the submission of a resolution and order from Sangguniang Bayan (SB) authorizing the local chief executive to sign and enter into a loan agreement with the bank,” LandBank said.

He added, “Sual LGU’s loan was duly authorized by a majority vote of Sangguniang Bayan (SB) which was confirmed by Sangguniang Panlalawigan (SP) of Pangasinan Province.

The bank said that the Sual government’s net borrowing capacity, which confirms its ability to repay the loan, has also been certified by the Bureau of Local Government Finance.

“The terms and conditions of the loan were approved and ratified by an order,” LandBank said.

On Monday, nearly 2,000 residents of different villages marched around the city to protest against the 500 million peso loan that the municipal government granted to LandBank.

They claimed the loan would plunge the city into debt that would be paid off in 15 years, which, at five percent annual interest, would have accrued interest of 325 million pesos.

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