The free energy of Penner`s model exhibits logarithmic singularity in the continuum limit. We show, however, that the one and two point correlators of the usual loop-operators do not exhibit logarithmic singularity. The continuum Schwinger-Dyson equations involving these correlation functions are derived and it is found that within the space of the corresponding couplings, the resulting constraints obey a Virasoro algebra. The puncture operator having the correct (logarithmic) scaling behaviour is identified. (author). 13 refs.