P’sinan to use as collateral uncollected IRA for loan deal

LINGAYEN, Pangasinan – The Provincial Board has approved a resolution authorizing Gov. Amado Espino Jr. to enter into a seven-year term loan with the Land Bank of the Philippines using as collateral the P79,249,686 share of Pangasinan in the unreleased 2001 and 2004 Internal Revenue Allotment.

In a session Monday here, the board members authorized Espino to represent the province to participate in the Monetization of IRA Collectibles for Local Empowerment Program (MIRACLE 2 Program), wherein Pangasinan has a collectible amount of more than P79 milllion.

The Land Bank has presented three schemes upon which the province may opt to collect its more than P79 million 2001 and 2004 IRA share.

Upon careful study of the Land Bank’s offer, the option to utilize the P79,249,686 as a collateral to a seven-year term loan is deemed to be most beneficial to the province.

Sixth district Board Member Alfonso Bince Jr. told local newsmen that compared to monetization which takes up to 2015 to fully receive the expected amount, they opted to resort to a loan where the province will receive the amount at one time.

He said they are not yet sure as to specific projects where the amount will be spent once the bank approves it.

But he said they trust the wisdom of Espino who shall negotiate with the bank and specifics will be known by the board members once they pass a supplemental budget where the amount shall be spent.

Due to the re-enactment of the General Appropriations Act for the years 2000 and 2003 in fiscal years 2001 and 2004 respectively, a total amount of P12,576,938,000 (the IRA differential) corresponding to the difference between the National Expenditure Program levels computed in accordance with the formula prescribed under the Local Government Code and the appropriations for IRA under the reenacted budgets for fiscal years 2001 and 2004 was not released.

The President issued Executive Order No. 723 (2008) authorizing the release of the IRA Differential on installment basis for a period of seven years commencing in fiscal year 2009 up to fiscal year 2015 or avail in advance of their respective shares in the IRA Differential through a monetization program.

Development Bank of the Philippines and Land Bank jointly established in 2006 the Miracle Program to implement the benefits intended under EO No. 494 series of 2006, and intend to continue the said program for 2008 in connection with the IRA Differential for the fiscal years 2001 and 2004 pursuant to EO 723.