THE city government will work for the restructuring of its loan of more than P300 million with the Land Bank of the Philippines this year in order that the city’s yearly debt servicing can be reduced.

Vice Mayor Belen Fernandez said this was among the plans spelled out by Mayor Alipio Fernandez Jr., at the start of the year.

The mayor spelled out his proposed initiative during the traditional New Year’s Day call on him Monday by members of the city council.

Councilor Michael Fernandez, vice chairman of the committee on finance and appropriations, said P60 million or 14 percent of the city’s P247.5 million annual budget this year was set aside for debt servicing.

If the city can restructure its loan, the debt-servicing can be reduced to only P22 million annually as the city will only be paying the principal.

The loan was used for the construction of the high rise Malimgas Market and the purchase of a dredging machine from abroad.

The market’s second floor is yet to be fully occupied while its third floor that was designed as a pay parking area has remained idle up to this time, derailing the income projections of the city government on the building.

The vice mayor told newsmen the city council will support the mayor’s initiative to restructure the loans so that the amount saved from debt servicing can be channeled to other high impact projects for the people of Dagupan.

If this will happen, she said there is a great possibility that the city government may finally grant the long-time call of stallholders for a reduction of their stall rentals.