In an earlier resolution passed by the provincial board, Governor Victor Agbayani was authorized to negotiate with the LBP for the extension of payment of interest and principal loan amortization of the province’s outstanding loan within a six-month period starting from February 2002 to July 2002 for additional loan to finance the province’s new infrastructure projects like irrigation, farm-to-market roads, school buildings, roads and bridges, etc.
Lawyer Virgilio Solis, provincial administrator, said the board of directors of LBP approved the province’s loan application worth P350 million on Nov. 15, 2001.
The P350 million credit facility is divided into three tranches: first trances is P112 million, second trances is P122 million and the third is P104 million.
He said the province has to resort to credit facility because of the dramatic decrease of the internal revenue allotment of the province thereby reducing the capability of the province in financing the various infrastructure projects in Pangasinan.
The loan will be paid in a maximum of 10 years inclusive of the one year grace period on payment of principal.