LINGAYEN—The provincial government is not seeking any loan at this time.

This was clarified by Provincial Administrator Rafael Baraan who branded as ‘disinformation’ talks insisting that the provincial government is set to secure a P950 million letter of credit with the Land Bank of the Philippines.

Baraan said the P950 million letter of credit is being offered not only by Land Bank but also by the Philippine National Bank, Postal Savings Bank and Philippine Veterans Bank.

The province however, according to him, is not taking any loan at this time because it has enough funds yet to be spent for its various development projects.

Governor Amado Espino Jr. in a speech read for him by Baraan, enumerated last week several projects the province intends to pursue without pointing out where to get funds to finance all these.

Baraan said several of these projects are in fact ongoing and are being financed from the province’s development funds.

“There is no need for us to borrow. We have sufficient funds to implement important and basic development programs and projects,” Baraan said.

He chided what he called the unfounded reaction of the public, including members of the media, about the supposed P950 million letter of fredit with the Land Bank.

The P950 million credit facility was extended by the banks because they are confident about the capability of the province to pay, Baraan explained.

He made it clear that these banks, “out of respect to the province, are just reserving the amount for the province if it later secures a loan”.

At present, Pangasinan already has an outstanding loan with Land Bank in the amount of P350 million spent by the previous Agbayani administration in rehabilitating irrigation projects.

Baraan said even if the province is paying P13 million a month for that loan, the banks are confident that the province has the capacity to obtain more loans.

Pangasinan has an Internal Revenue Allotment of P1.4 billion yearly, one of the biggest in the country given Pangasinan’s land area and population.

Baraan also clarified that if ever the provincial government decides to get a loan later, it will first get the approval of the provincial board and submit to it a list of projects to be funded.

Provincial Board Member Alfonso Bince Jr. (Lakas-NPC, 6th district) had served notice he will oppose any proposal for the province to secure a letter of credit which he considers a sort of a blank check to be given to the provincial executive.

He said he will favor such a move if it is a direct loan for specific projects, but not a blank letter of credit. (PNA)