DBP top officials apologize to Treñas
Top officials of the Development Bank of the Philippines (DBP) apologized to Mayor Jerry Treñas over the "extreme inconvenience" caused by the bank's Senior Vice President for Regional Marketing Center Crisanta Ibero relative to the city's loan of P350 million from the Land Bank of the Philippines (LBP) for the construction of the new city hall building.
DBP President and Chief Executive Officer Reynaldo David along with the bank's Board of Director Miguel Romero went to the mayor's office yesterday to assure that what happened in Iloilo City is an "isolated case."
The officials assured DBP will continue to be a partner of the city's projects and future undertakings.
The conflict arose when Ibero wrote Treñas about DBP's offer of a lower interest rate for its proposed loan despite the fact that the city had already entered into a loan agreement with the LBP.
Interestingly Ibero wrote Treñas about the offer twice, September 24 and September 28, while the loan agreement with LBP was signed September 14. Worst, Ibero provided copies of her letter to Vice Mayor Jed Mabilog and members of the Sangguniang Panlungsod.
It was learned that Ibero made an offer of 6.5 percent per annum variable, though the effective rate is higher than 7 percent per annum, that is to include other charges such as the gross receipt tax and processing fee of .50 percent.
The city's loan with LBP is payable in 15 years with 7 percent interest rate per annum.
David described Ibero's action as "over-zealousness" of the bank officers and there was no intention to embarrass the chief executive.
He said they are looking into giving disciplinary action to Ibero.
On his part, Treñas accepted the apology of David."I was initially hurt and disappointed by how DBP-Iloilo dealt with the issue, but I appreciate the gesture of Mr. David and Mr. Romero who apologized in person," Treñas said.
The chief executive noted that the city is the largest depositor of DBP among the local government units in Western Visayas.