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We are pleased to inform you that the structure and guidelines for the monetization or securitization of the unreleased IRA for the month of December 2000 amounting to P 6.75 billion through LGU Bonds is now being worked out with the concerned agencies.
The idea of the monetization of the IRA, proposed by Gov. Luis R. Villafuerte and Gov. Hermilando Mandanas, was discussed with the President when officers of the Union of Local Authorities of the Philippines (ULAP) met with President Arroyo last October 6, 2001 to discuss ways of addressing the unreleased IRA. During the meeting, the President informed us that due to the huge budget deficit, DBM cannot make additional releases over and above those programmed in the re-enacted 2000 General Appropriations Act (GAA). However, she is amenable to the proposed scheme to securitize the P 6.75 B for the following reasons: (1) this would not involve any cash outflow for the National Government; (2) will not increase the budget deficit; (3) will be guaranteed by the national government; (4) tax exempt; and (5) will qualify for agri-agra projects, among others. The President announced this last October 10, 2001 during the 10.10.10 Celebration.
I have made representations with Her Excellency President Gloria Macapagal-Arroyo today to immediately convene the Task Force for this purpose, composed of the Secretaries of DILG, DBM, DOF, Executive Secretary Romulo, together with ULAP officials to discuss the structure and guidelines with the hope that this scheme be implemented before the year ends so that all LGUs will be receiving their respective IRA shares from this.
More detailed information on this program, particularly on the expected deliverables by each, will be relayed to you at the soonest possible time. We shall provide regular updates as well.
For your information and guidance.
GOV. RODOLFO P. DEL ROSARIO
National President
Click here to view the estimated share of provinces under the P6.75B unreleased IRA for December 2000 (MS Excel Format)
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