CEBU, Philippines – Cebu Governor Gwen Garcia, Development Bank of the Philippines director Ramon Durano IV and DBP senior assistant vice president Rosalie Dagondon signed a Memorandum of Agreement yesterday for a soft loan program to help Cebu’s component cities, including those reverted back to towns, complete their projects.
Due to numerous requests the province will make available loans to its component cities and municipalities.
The loan will also be available to any interested municipality that wants to complete a development project.
Capitol and DBP are focusing on the paying capacity of a local government unit for the soft loan.
Garcia guaranteed LGUs that the program will offer lower rates compared to commercial banks.
It was confirmed that two municipalities have already signified to avail themselves of the loan program.
The towns of Asturias and Borbon want to use the money for the housing programs of its employees and a waterworks facility, respectively.
The Cebu Economic Enterprise Council will screen and approve application of a city or municipality.
Interested city or municipal governments must submit their letter of intent to Garcia, who is also chairwoman of the EEC.
Earlier, Garcia promised to help the towns of Bogo, Naga and Carcar —that were reverted back to towns by the High Tribunal’s ruling — saying the decision will affect the government units’ IRA share. – Johanna T. Natavio/BRP (THE FREEMAN)