ILOILO City – This city’s P1.750-billion loan from the Development Bank of the Philippines (DBP) is too big and untimely, according to Councilor Eduardo Peñaredondo.
Mayor Jerry Treñas, however, stressed the city government needed to provide jobs to its residents economically displaced by the coronavirus pandemic.
“The DOF (Department of Finance) determines the amount a local government unit can borrow,” Treñas further told Panay News.
These projects include the construction of the Iloilo City Hospital and the rehabilitation of the public markets of Jaro, La Paz and Arevalo, among others.
Peñaredondo expressed his disapproval during Tuesday’s regular session after Treñas asked the Sangguniang Panlungsod (SP) to grant him the authority to enter into a loan contract with DBP.
“Wrong timing. Our economy has slowed down because of the pandemic,” said Peñaredondo.
“Kon small amount lang, okay. To go on a big undertaking in a time like this is wrong. We’re not even sure what will happen next,” Peñaredondo added.
He also pointed out the city government’s outstanding loans not fully paid yet such as the one used to build the Iloilo City Hall before Treñas was elected as congressman.
Treñas’ request was referred to the Committee on Rules and Appropriations chaired by Councilor Romel Duron.
“Gin-refer ina sa aton committee para mahibaluan ta kon diin makadto ang kwarta nga hulamon ta kag kon bala makasarang ang syudad magbayad sang sina nga loan,” Duron said.
Duron understands the sentiment of Peñaredondo and said “it was valid.”
“Studyohan ta kay basi indi makasarang magbayad ang syudad. For 15 years pila ang interest? Diin ang mga sources ta kay subong nagnubo ang aton tax collection,” Duron added.
Treñas, meanwhile, welcomes the move of the SP to study the matter first.
“DBP has also checked our borrowing capacity,” said Treñas adding that “it will be good for everyone.”/PN
