The Commonwealth Development Authority Board 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.<\/p>\n
\u201cWe\u2019re looking forward to lifting it before the end of this year. We have the resources. We\u2019re finalizing our plan, our loan packages, but we need to be very careful on how we disburse it,\u201d said CDA board economic development committee chair Tom Quitugua in an interview after yesterday\u2019s board meeting. <\/p>\n
CDA said that over 70 percent of its loans are considered to be in the high delinquency rate category.<\/p>\n
Quitugua said that CDA aims to collect at least $2 million before the end of this year.<\/p>\n
The CDA imposed a moratorium on direct loans in 2000 due to delinquent payments as a result of the 1997 Asian economic contagion.<\/p>\n
Now that the economy has begun to rebound, Quitugua said that CDA sees more clients coming in to update their accounts. <\/p>\n
In 2001, CDA placed its collectible loan payment at $48 million. <\/p>\n
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.<\/p>\n
\u201cWe encourage our clients to come and negotiate with us. We\u2019re most willing to assist them. It\u2019s far better to see us now because delaying it further would only hurt them in terms of compounded interests,\u201d said Quitugua.<\/p>\n
He said CDA loan manager Oscar Camacho is always ready to meet with concerned customers.<\/p>\n
He noted that recent collection efforts launched by CDA have resulted in \u201cpositive feedback.\u201d<\/p>\n
\u201cSome are very honest in paying back,\u201d he said. \u201cThat\u2019s why we encourage others to come because there are options for them to make their accounts up-to-date.\u201d<\/p>\n
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. <\/p>\n
CDA said its DCD has depleted its cash portfolio due to its failure to collect interest, late fees, and loan principals from most of its clients. <\/p>\n
It said that besides putting in stronger measures aimed at tracking collectibles, CDA is currently working out ways to tap federal funding through the U.S. Department of Agriculture\u2019s Rural Development. <\/p>\n
It added, though, that key to its future solvency are the revenue derived from loan principal and interest payments.<\/p>\n","protected":false},"excerpt":{"rendered":"
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