A resolution confirming and reaffirming the loan agreement between the City of Bacolod and the Philippine National Bank for the construction of the new government center was passed by the Bacolod Sangguniang Panlungsod yesterday.

The loan agreement was entered into between Mayor Evelio Leonardia, representing the city government, and PNB senior vice president Victorio Sison for PNB on February 2007.

PNB has offered the city a maximum loan of P400 million but its basis of release will be the loan contract price of P395 million to be payable in 15 years at an interest rate of 3.4 percent, which according to Sison will vary depending on the T-bills rates.

Those who voted in favor were Councilors Greg Gasataya, Dindo Ramos, Homer Bais, Jocelle Batapa-Sigue, Wilson Gamboa Jr., Al Victor Espino, Napoleon Cordova, Catalino Alisbo, Reynold Iledan, Roberto Rojas, Alex Paglumotan, Arturo Parreño and Marx Louie de la Rosa. Councilor Celia Flor abstained.

Gasataya said they have also requested PNB for an extension of the implementation of the loan. He said this had expired in February because of an internal policy of the bank to suspend the release of the loan during the period of the election ban. He said they passed a resolution confirming and reaffirming the loan agreement between the city and PNB as required by the bank when a new set of SP comes in.

Sison informed them that this is also being applied to other local governments that have pending loans with them, Gasataya said.

Meanwhile, Leonardia said they will only secure a loan from one bank, whichever they start with. He stressed that the loan for the government center is not going to prejudice the delivery of basic services.*CGS

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