VP NOLI LAUDS NEW HOUSING CONDONATION AND RESTRUCTURING LAW
August 20, 2008

Vice President and Housing and Urban Development Coordinating Council (HUDCC) chairman Noli “Kabayan” De Castro congratulated the members of the Bicameral Conference Committee for hammering out, in record time, a law that provides financial relief to delinquent housing loan buyers and borrowers.

"Tamang-tama ito para sa mga kababayan nating nakaka-ranas ng kagipitan. Gagaan ang kanilang hulugan at masasalba nila ang kanilang mga tirahan".

But while the new law provides relief to delinquents, it also allows the Key Shelter Agencies (KSAs) and government financial institutions (GFIs) to reward those who have been religiously paying their amortizations.

"This does not mean that we are encouraging defaults. The law has specific provisions to ensure that it will not be abused. The intent is simply relief in view of the economic difficulties. The financial viability of the government agencies involved, as well as promotion of credit discipline among borrowers, remain to be inviolable," added De Castro.

The new law provides flexibilities to the KSAs and GFIs to adjust their policies so that the effective financial burden on delinquent borrowers is reduced thru a combination of interest adjustments, recomputation of principal, extension of payment periods, condonation of penalties and surcharges, and others.

home   |   Press Release main page   |