Imee succeeds in lowering INHHC loan interest rate

INHHC loan interest rate down by 5%
BY LEILANIE G. ADRIANO
STAFF REPORTER

AN ESTIMATED P1.7 million will be saved yearly by the Ilocos Norte government after it succeeded in negotiating with the Development Bank of the Philippines to lower the annual interest rate of the Ilocos Norte Hotel and Convention (INHCC) loan from 13 percent to 8 percent.

Starting January 1, 2011, the annual amortization or repayment to the DBP regarding the P475 million loan for the construction of the hotel and convention center amounting to more than P35.7 million, which would be sourced from the provincial government’s 20 percent development fund as per the loan agreement, will be decreased by five percent for the next five years.

On December 13, 2010, the Sangguniang Panlalawigan unanimously approved a resolution ratifying the second amendment of the term loan agreement between the provincial government and DBP.

Under the second amendment, the provincial government under the new leadership of Ilocos Norte Gov. Ma. Imelda “Imee” R. Marcos was able to renegotiate with DBP management to lower the annual interest rate at a fixed rate of 5 percent from 2011 to 2015, inclusive of gross receipts and taxes.

Also, the provincial government was able to convince DBP to lower its average daily balance requirement from the bank from 40 to 20 percent.

Earlier, provincial treasurer Josephine Calajate told Capitol beat reporters, after a budget deliberation at the Sangguniang Panlalawigan that the provincial government is subsidizing the operation of the INHCC because the privately-managed hotel and convention center’s operation and services is just starting to pick up.

source: The Ilocos Times - December 13 - December 19 2010 issue