Previous Story
Program eyed to curb growing delinquency
|
Posted on Jan 16 2001
The Commonwealth Development Authority is eyeing the institution of a program that would help curb the increasing volume of delinquent borrowers in light of worsening economic condition on the island.
CDA corporate division officials will sit down today to discuss possible ways to assist borrowers cope with their financial obligation amid hard economic times, according to Development Authority Board Chair John S. Tenorio.
The government’s major lending arm has been swamped with concerns on the increasing delinquency rate, as well as requests from borrowers for loan restructuring to allow them more time to settle their credit.
Mr. Tenorio said borrowers have also started seeking advise from the development authority on how they can continue to pay their dues on time without sacrificing other basic necessities.
CDA recently launched a program aimed at educating its clients on ways to become better borrowers, underscoring the importance of a good credit history in their future loan applications.
Borrowers who have persistently pay their monthly dues on time in the past are less likely to obtain loans from either government or private financial institutions even if they are able to settle their existing obligation.
Financial institutions are very particular in the consistency of the borrowers’ ability to pay their monthly obligations. Mr. Tenorio said those who have persistently failed to settle monthly dues are more likely to be turned down by credit companies.”
This is one of the reasons behind the development authority’s decision to mobilize its people to conduct a series of consultations with existing borrowers.
At the same time, CDA initiated the counseling to halt the rising number of delinquent borrowers which soared to 15 percent during the January-May period, from 13 percent by end-December 1999.
