CH aims to be debt-free by paying off SRP loan

THE Cebu City Government targets to pay the remaining balance of its loan for the South Road Properties (SRP) by the end of August.

This, after the City Council approved the first supplemental budget amounting to P4.5 billion on July 28, 2021.

Included in the supplemental budget is the P1.2 billion intended for the payment of the SRP loan.

City Councilor Raymond Alvin Garcia, committee on budget and finance chairman, said following the approval of the SB1, the City Government will process the payment of the SRP loan to the Land Bank of the Philippines (LBP).

LBP serves as the conduit bank for the loan with the Japan International Cooperation Agency (Jica).

Garcia said it will be a long process, adding that the City has to secure some documents from the Department of Finance, the monetary board of the Bangko Sentral ng Pilipinas and other relevant agencies and comply with other requirements.

Garcia said documentation is necessary.

A Y12.315-billion loan, equivalent to P4.65 billion at that time, from the Jica was extended to the City Government in 1995 through LBP.

Garcia said the City should be able to pay off the loan by end of the month to avoid paying additional interest.

However, considering the situation now brought about by the coronavirus pandemic and the continuing rise in cases, there is a chance some processes will be delayed as some agencies might adopt a skeletal workforce.

“So we are hoping that all documentation will be done within the month of August so we will pay the full amount as what was stated in our SB1,” said Garcia.

The SRP loan is payable until 2025. (JJL)