After 27 years, SRP loan fully paid

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THE Cebu City Government is now debt-free after it released P904,898,606.27 over the past few days to fully pay for its loan for the development of the South Road Properties (SRP), the local government’s news platform announced Tuesday night, Aug. 30, 2021.

“It has been done. Technically, we are now debt-free,” Jerone Castillo, special assistant for fiscal reforms of Mayor Michael Rama, was quoted in the report as saying.

The report cited City Treasurer Mare Vae Reyes as confirming that the City first paid on Aug. 19 through debit from its Land Bank of the Philippines (LBP) account its last semi-annual amortization of P145,631,585.45, then the balance of P759,267,020.82 on Aug. 23.

Rama is expected to receive the certificate of full payment from LBP president and chief executive officer Cecilia Borromeo next month, according to the report.

In 1995, the Cebu City Government received a 12.315 billion yen loan, equivalent to P4.65 billion at the time, from the Japan International Cooperation Agency through LBP to construct the SRP, a 300-hectare reclamation project. The loan was payable in 30 years, or until 2025.

Rama moved to repay the outstanding balance ahead of its due date to allow the City to save money on interest payments and other charges.