[ Manila Bulletin Online ] April 2, 2008
By LEE C. CHIPONGIAN
Government missed the March 31 deadline for the signing of the implementation agreement for the refinancing of the 5-million MRT3 loans due to taxation issues.
Finance Secretary Margarito B. Teves said they have extended the deadline till they resolve the question of who will pay the tax.
The implementation of the Memorandum of Agreement (MoA) between the Department of Finance (DoF), Department of Transportation and Communication (DoTC) and the stockholders of Metro Rail Transit Corp. (MRTC) has been extended indefinitely.
"We’re still trying to find ways to finally get the MOA approved by both parties," said Teves. On the internal side the DoF is finalizing agreements with the DOTC while externally, they have to sign agreements with the MRTC.
It is the taxation issue of the MRTC and its stockholders that are being discussed.
"(The) March 31 deadline has been moved because of circumstances (and some) honest difficulties such as the issue on tax and how this tax will be applied, whether solely on MRTC or are we (taxing) the stockholders as well. This is the nature of the problem," said Teves. "There were so many issues but this is the (last) one," he added.
Teves said that once resolved, they can move on to finalizing the financing side.
The Development Bank of the Philippines has been mandated to arrange the loan syndication with Land Bank of the Philippines. "They were instructed to come up with a financing package in 30-60 days after (the) signing of the implementation agreement," the DoF chief said.
Including interests on the loan, the total amount that would have to be raised by the DBP and Land Bank is 0 million. "But this amount is increasing every day (because of interest charges)," said Teves.
DBP and other institutions will be sourcing this amount from local banks. "That is our preference (that) the entire amount will be sourced locally," Teves said in a previous interview.
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