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Labella gets nod to negotiate SRP loan prepayment

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The Cebu City Council has authorized Mayor Edgardo Labella to negotiate with the Land Bank of the Philippines (LBP) for the pre-payment of the loan for the South Road Properties (SRP) project.

“As I’ve said before, in order for us to start the ball rolling so to speak, the first document that the Land Bank needs is really the Council resolution authorizing the mayor to negotiate for the prepayment of the loan,” said Councilor Raymond Alvin Garcia, who sponsored the resolution.

The resolution stated that the city’s outstanding loan from LBP amounts to around P1.07 billion. (https://bit.ly/3pdWO4l)

Garcia said the city has been finding ways to reduce its expenses and the prepayment of the SRP loan obligation would allow the city to generate a net monetary savings of at least P85 million with February 2021 as the target date of prepayment.

“Now, from here, we will now have to get the other requirements such as, if I’m not mistaken, we have to get an endorsement from the Department of Finance, Bangko Sentral ng Pilipinas, etc., before we push for another Supplemental Budget for the payment of the entire amount,” he added.