Iligan City council favors zero interest financial assistance

for livelihood programs

Iligan City, Dec. 22 (PIA) -- City Councilor Roy L. Openiano, principal author of
the ordinance amending certain provisions of the preceding Ordinance (No. 05-
4719) which intends to provide financial assistance to all qualified associations
and cooperatives of the city, is jubilant over the support from the majority of
the council members on Monday, December 20, 2010.

In an interview aired over the ‘PIA Action Line’ radio program at DXIC-RMN
Iligan, Openiano said the move resolves on four (4) major amendments which
are to better systematize and strengthen the program being supervised by the
City Livelihood Assistance Committee (CLAC), and ensures that the money the
government lends will be efficiently managed and monitored.

And the most important feature of the amendment concentrates on the lending
terms making it now a zero interest financial loan from the previous rate of
four percent (4%).

The councilor noted that there are associations delinquent in making

payments, and some even fail on their financial management and planning.

“The new system will not only lighten the borrowers but will also help them
better manage the financial affairs of their associations. This will mutually
beneficial to both the government and the borrowers,” he said.

Although it is not yet clear whether the new ordinance will apply to old
borrowers by way of restructuring their loans, the CLAC has yet to formulate
the guidelines implementing the new rules.

Being the former head of the Cooperative Development and Livelihood Office
(CDLO) of the city, Openiano recognizes the increasing number of registered
associations from the non-government organizations (NGOs) and the private
organizations (POs), and newly formed cooperatives.

“Right now there are about 105 registered associations, among which only 68
are active and some 14 cooperatives are applying to renew their loan,” said
Openiano.

While the Sangguniang Panlungsod of Iligan recently approved the annual

budget for 2011 thus, appropriating P1.027 billion to general fund and P211.7
million for special account, the councilor also intends to increase the available
fund for the City Livelihood Assistance Program (CLAP) from P1.0 million to
P3.0 million pesos.

The new ordinance has yet to be signed by City Mayor Lawrence Ll. Cruz early
next year. (Jun Cabilla/PIA LDN)