Nograles assures small business owners of moratorium on loans

Published April 1, 2020, 12:00 AM

by manilabulletin_admin

By Argyll Geducos

The national government assured small business owners that they do not have to worry for now about paying their loans since there is currently a moratorium on loans extended by the Department of Trade and Industry (DTI) through its different programs.

Cabinet Secretary Karlo Nograles gave the assurance as the public expressed concern over the loans that they may not be able to pay due to the enhanced community quarantine being implemented in Luzon due to the coronavirus disease (COVID-19) pandemic.

Cabinet Secretary Karlo Nograles (Photo from Karlo Nograles  / Facebook page / MANILA BULLETIN)
Cabinet Secretary Karlo Nograles (Photo from Karlo Nograles / Facebook page / MANILA BULLETIN)

Nograles said the government recognizes the effects of the pandemic on the lives of ordinary people.

“We recognize that this crisis has an impact not only on public health but on the health of small businesses all around the country. Marami din sa inyo nag-aalala ‘di lang para sa pamilya niyo kundi ang mga babayarin (A lot of you are worried not just for your family but also about your loans),” he said.

According to Nograles, several government institutions have programs and directives to address the concerns of small business owners. He said the implementation of DTI’s Enterprise Rehabilitation Financing (ERF) program, which includes restart and/or restock of businesses to avoid foreclosure of their business assets, will start once quarantine restrictions are lifted.

“Kung may mga loan po kayo, ‘wag po kayo mag-alala (You don’t have to worry if you still have unpaid loans). A moratorium on loans extended by the DTI via its different programs is currently in place,” he said.

“This moratorium on the payment of loans has benefited 127,000 micro-enterprises under the Pondo sa Pagbabago at Pag-asenso (P3) Program and 15,000 micro, small and medium enterprises (MSMEs) under the Small Business Corporation (SBCorp) corporate-funded loan portfolios,” he added.

He added that there was also a three-month moratorium on loans from March 16, 2020 to June 15, 2020 for government-owned and -controlled corporations under the Department of Human Settlements and Urban Development (DHSUD).

“This measure will benefit a total of 5,521,611 Pag-IBIG member-borrowers and beneficiaries of the housing programs of these agencies, and covers an aggregate amount of 31.4 billion pesos in amortization payments due for the three-month period,” Nograles said.

“This measure will benefit a total of 5,521,611 Pag-IBIG member-borrowers and beneficiaries of the housing programs of these agencies, and covers an aggregate amount of P31.4 billion in amortization payments due for the three-month period,” he added.

Under the said moratorium, Nograles said the collection of amortization for loan repayments is suspended from March 16, 2020 to June 15, 2020 and borrowers shall not be imposed any additional interest or penalty for non-payment.

The breakdown of the amount and the beneficiaries for each of the GOCCs are as follows:

  • Home Development Mutual Fund – Housing loan payments worth P13.8 billion covering one million borrowers, and multipurpose and other short-term loans worth P16.7 billion in loan payments of 4 million borrowers;
  • National Housing Authority – loan repayment/amortization dues in the amount of P450 million, covering a total of 263,611 residential accounts;
  • Social Housing Finance Corporation – P300 million worth of monthly collections from some 240,000 informal settler families; and
  • National Home Mortgage Finance Corporation – P165.5 million in borrower’s payments for more than 18,000 housing units.
 
CLICK HERE TO SIGN-UP
 

YOU MAY ALSO LIKE

["news","news"]
[2016509,3062369,3062353,3062361,3062325,3062313,3062310]