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San Antonio LGU forges P185.67-M loan package with Land Bank

SAN ANTONIO, Nueva Ecija – The municipal government here has forged a P185.67-million worth of loan agreement with the Land Bank of the Philippines-Nueva Ecija Lending Center for the proposed buy-out of a “2015 old loan” with East West Banking Corporation worth P63.37-million that was negotiated by the previous administration and a “fresh loan” of P122.3-million to finance its key infrastructure projects including the acquisition of a new lot for the construction of a new three-story NEUST building in this first-class municipality.

Signatories to the multimillion-peso loan agreement were Mayor Arvin C. Salonga representing the San Antonio local government, and Eduardo N. Reyes Jr., as the LBP vice president and NELC head.

Witnesses to the loan agreement-signing which was held at the mayor’s office here were OIC-municipal treasurer Charito I. Ipurong, Criselda S. Esteban, LBP account officer, and Levin J. Tolentino, account assistant.

Others who were present to witness the loan-signing were municipal budget officer Armando Cruz, municipal engineer Leonor Balcos, and municipal planning and development officer August Ortiz.

Also included in the new loan deal with the LBP was the buy-out of the P63.37-million loan previously incurred during the administration of former mayor Antonino Lustre and inherited by the LGU when he assumed the mayor ship in 2016, said Salonga, who was earlier given authority by the municipal council to negotiate and enter into this loan agreement with LBP.

The mayor described the newly-forged LBP deal as “highly beneficial” to his constituents and the local government because of the LBP’s low interest paying rate of four percent that was offered compared to the previous six percent that was earlier charged by the East West Bank for the old loan that was incurred during Lustre’s previous administration.

Itong loan agreement with Land Bank is worth over P185 million including new projects for the town’s 16 barangays at para makabawas-bawas tayo sa monthly amortizations natin, kasama din dito ang buy-out sa previous loan mula sa East West Bank, ito nga iyung utang sa ginawa na terminal complex noong nakaraang administrasyon na kukunin ng Land Bank sa mas mababang interest rate from six percent to four percent at iyung sobrang pera matitipid dito magagamit sa iba pang proyekto na benepisyo para sa taumbayan,” explained Salonga.

The new loan deal which has a repayment period of 10 years consists of four separate packages with “Loan 11” designed to pay up the P63.37-million old loan with EWBC; “Loan 12” is worth P54.8-million, for new project components such as road concreting, construction of multi-purpose buildings, barangay gyms, rehab of barangay health center, development of San Francisco cemetery and improvement of Lawang Cupang cemetery;

Loan 13” which costs P32.5 million is for the purchase of 10 brand-new ambulances, two units of brand-new rescue vehicles-paramedic style, 10 units new 5-tonner air conditioning systems, installation of solar-powered lights and purchase of a new 150KVA generator set; and the last package worth P35 million called “Loan 14” is to finance the acquisition of a lot as site for the construction of a new three-story NEUST building.