Kalibo, Aklan- During its 16th regular session on October 20, 2010, the Aklan Sangguniang Panlalawigan has granted/approved the request of Gov. Carlito S. Marquez to allow him to sign, in behalf of the province of Aklan, another Omnibus Loan Term Facility with the Land Bank of the Philippines to the total amount of P480 Million.
The loan term facility provides a credit line to the provincial government to a ceiling of P480 Million, whole or part of it can be availed by the Province intended to finance the operations, programs or projects of the local government unit qualified for financing under the agreement.
The Bureau of Local Government Finance has certified that Aklan has a hefty credit rating which has a current borrowing capacity of P642 Million as of 2010, based on its Net Debt Service Ceiling of P100.18 Million.
The provincial government of Aklan has already an outstanding loan balance of a total of P506.605 Million as of September 30, 2010 and is expected to reduce it to only P451.125 Million by year end.
These outstanding loan balances were incurred from PNB-CSM Bonds-P260-Million; LBP-P128.091-Million; another outstanding loan balance with PNB of P36.619-Million and from LOGOFIND/DOF/WORLD Bank-P81.895-Million.
The current outstanding loan balances of the province do not reduce nor affect its borrowing capacity as of 2010 of P642-Miliion.
The Provincial Local Finance committee (PLFC) of Aklan has set aside P75 Million for debt repayments next year (2011) out of its more than P100 Million 20% IRA Development Fund in the proposed 2011 General Fund Budget.
The P75-Million appropriations for debt servicing next year is way below the Net Debt Service Ceiling for Aklan of P100.18 Million.
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