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CDA to defer payment of Chaba victims
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Posted on Sep 14 2004
The Commonwealth Development Authority is now carefully reviewing the possible deferment of loan payments by borrowers who were affected by Supertyphoon Chaba.
CDA can give up to 90 days payment deferment to eligible individuals, said CDA board member Tom Quitugua in an interview.
“Considering the impact of recent typhoons, especially Chaba, CDA aims to give them a little break provided that they are able to supply us with needed documents or evidence [of the typhoon’s impact],” he said.
The CDA earlier said it hopes to lift the moratorium on its loan program by the end of the year, citing beefed up collection efforts and positive financial projection.
The CDA imposed a moratorium on direct loans in 2000 due to delinquent payments as a result of the 1997 Asian economic contagion.
Now that the economy has begun to rebound, Quitugua said that CDA sees more clients coming in to update their accounts.
In 2001, CDA placed its collectible loan payments at $48 million.
Quitugua said there are still some 200 customers that have yet to be current on their loans. He said these individuals need to show up and avail themselves of available programs to restructure their loans.
“We encourage our clients to come and negotiate with us. We’re most willing to assist them. It’s far better to see us now because delaying it further would only hurt them in terms of compounded interests,” said Quitugua.
The board member, who is chair of the committee on economic development, noted that recent collection efforts launched by CDA resulted in “positive feedback.”
CDA, an autonomous agency, is mandated to offer loans to the public through direct, business, or personal loans. It used to grant up to $5 million in direct loans.
CDA said that over 70 percent of its loans are considered to be in the high delinquency rate category.
