October 3, 2021 | 12:00am
MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) has given borrowers of closed banks up to 25 percent discount if they opted to settle their outstanding loans through a one-time payment.
Under the Closed Bank Loan Incentive Program (CLIP), borrowers can avail themselves of discounts and even waivers from the PDIC when paying their financial obligations to banks shuttered by the Bangko Sentral ng Pilipinas.
The program extends incentives with a total balance of less than P1 million, for as long as they pay their debts through a one-time settlement.
For clean loans taken from banks shut in 2020 onward, CLIP gives a 10 percent discount on the outstanding principal, including booked interest, penalties and charges. The program also clears borrowers of all their unbooked interest and penalties.
Further, CLIP grants a 25 percent off on the outstanding principal and booked interest, penalties and charges for clean loans acquired from banks closed in 2019 and earlier. Likewise, it waives borrowers of all their unbooked interest and penalties.
On the other hand, the PDIC gives no discount on the outstanding principal and booked interest, penalties and charges for secured loans.
For the same category, unbooked interest is reduced to five percent per annum and a waiver is provided for unbooked penalties.
According to the PDIC, borrowers qualified for the discounts under the CLIP may avail themselves of the scheme until Sept. 30, 2022, a year after the program’s inception.
The PDIC rolled out CLIP to alleviate the burden on borrowers of shuttered banks in paying their financial obligations. The agency also wants individuals and firms to regain their credit standing and recover their mortgaged assets through the program.
