City Council approves P231 M loan to complete new City Hall City Council approves P231 M loan to complete new City Hall

NOV 18-24, 2010

The City Council has approved to secure a new loan worth P231 million for the completion of the new City Hall at Barangay Apokon as it authorized Mayor Rey Uy to be the loan signatory.

In a DXDN Radyo Ukay Tagum radio interview, senior Councilor De Carlo “Oyo” Uy said that the new loan would be secured from the Philippine National Bank with the 20 percent of the city’s Internal Revenue Allotment made as loan collateral. The loan carries 7.75 interest rate.

The City Council finally approved the loan in its Nov. 15 Monday session with the authority given to Mayor Uy to secure it.

“With the P231 million that has still to be approved by the bank, the total loan for the new City Hall is P681 million with the earlier loans of first P200 million and then P250 million from the DBP (Development Bank of the Philippines),” he said.

Uy, who is chairman of the budget, finance and appropriation committee, said that the city government can ably pay for the new loan even as old loans for the new city hall project are continuing to be amortized.

He said that based the city government’s projected revenues, the new loan is within the allowable debt servicing capacity as for the next year its debt servicing capacity will increase as to be certified by the Bureau of Local Government Finance. (cm with DXDN Radyo Ukay Tagum report)

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