THE LGU HAS A HIGH CREDITWOTHINESS RATING AND PLANS TO IMPLEMENT A HIGH GENERATING INCOME PROJECTS AS A LOCAL TREASURER , BEST ADVICE FOR CREDIT FINANCING ?
Answer (1)
As a local treasurer, I would advise the LGU to pursue responsible credit financing by ensuring that:The loan terms are favorable (low interest, long maturity period).There is a clear and realistic repayment plan based on projected income from the project.The credit is used exclusively for the income-generating project and not diverted to non-essential expenses.The LGU monitors financial performance regularly and establishes controls to avoid fund misuse.Transparency and accountability are practiced by publishing financial reports to stakeholders.
