CDA offers flexible payment plan to borrowers By ALDWIN R. FAJARDO
With local businesses still tottering from the adverse effects of the two-year economic turmoil, the Commonwealth Development Authority has put in place plans aimed at preventing any setback in the payment of commercial loans.
CDA Chair John S. Tenorio pointed out that the flexible payment scheme was installed to help loan payees settle their regular financing obligation amid the hard economic times when a big number of borrowers are normally not able to service loan payments.
“We have been looking into the type of businesses that need help. We have been revising a lot of old loans particularly on the commercial and the apartment type of activities, as well as the tourist-related type of loans,” Mr. Tenorio told reporters.
He said, however, that revision of loans are applied only to borrowers who have sought the help of the Development Authority. Under the loan revision program of CDA, borrowers are allowed to make payments lower than the agreed terms of the loan agreement.
” For example, if a borrower’s contract payment is $4,000 and he can only afford to pay $2,000, then we allow them to pay us in whatever amount they can afford,” Mr. Tenorio said.
He explained that the absence of a healthy economy is one of the major reasons why CDA is stretching out the loans, thus, the reduced payment scheme which will be implemented for two years.
“We want everybody to survive. It is not just collecting funds. If they encounter problems with their present payment, we arrange the specific amount that is agreeable to both the CDA and the borrower,” he added.
The reduced payment scheme was instituted to prevent more foreclosures, especially by businesses who have existing and overdue loans from the Development Authority.
Mr. Tenorio expressed confidence that the new payment scheme will work well. “In fact, it is already working to the advantage of both the CDA and our borrowers.”
