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On loan foreclosures
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Posted on Aug 15 2000
The Issue: An official announcement by CDA to begin foreclosing delinquent loans among borrowers.
Our View: CDA needs to review (once more) primary cause of delinquency before foreclosures.
An announcement was issued last week that the Commonwealth Development Authority would begin foreclosure procedure for loan delinquency.
We’re not sure what specific loans have been delinquent or what forms of collateral have been put up for these loans. It seems, however, that CDA is after borrowers who have never paid their dues even after persistent notification. Or those who have been asked to report to CDA for a conference to review what may have gone wrong and forms of assistance available to get them out of this situation.
Indeed, small businessmen have suffered heavy losses (including voluntary business closures) since the economic slide some four years ago that remains steady on the downward spiral to this day. Those associated with tourism have been especially adversely affected by the economic doldrums.
Perhaps it is prudent for CDA to take note of the serious slide of the local economy that has descended on the entire business community in these isles further aggravated by protectionist measures approved in previous legislatures. The loss in revenue generation under current investments have largely been triggered by external and internal influences.
All these while city hall sits dazed and couldn’t figure how stave-off any further loss in current investments.
Obviously, there’s the loss in the volume of business in the past four years. As such, we can’t reasonably expect CDA borrowers or other businesses to pull through these difficult times unaffected by internal and external influences. A grace period is needed to guard against loss of property at a time when most businesses have been and still are struggling to figure out heads from tail. Si Yuus Maase`!
