The Philippine Deposit Insurance Corp. (PDIC) announced on Monday the indefinite extension and streamlining of its Closed Bank Loan Incentive Program (CLIP) and launched CLIP 4.0 to provide enhanced relief to borrowers of closed banks.
Starting Jan. 1, the state deposit insurer began offering incentives to borrowers with outstanding principal balances of up to P10 million, provided they make a one-time cash settlement. Under the new guidelines, incentives are now determined solely by loan type and status rather than the date of the bank’s closure.
For real estate mortgage loans, the PDIC standardized the unbooked interest rate at 3 percent per annum. This replaces a previous scale that ranged from 3 percent to 5 percent and varied based on the age and status of the loan and when the bank was shuttered.
The program continues to offer a 50-percent discount on the outstanding principal, booked interest, penalties and other charges for borrowers with clean loans or pledge-secured loans. Additionally, all qualifying borrowers receive full waivers on unbooked penalties and other applicable charges.
“By simplifying the rules and further enhancing the incentives and indefinitely extending the program, the PDIC reinforces its commitment to providing meaningful financial relief, enabling borrowers of closed banks to resolve their obligations more efficiently and move forward with renewed financial stability,” the PDIC said in a statement.
The move aims to expedite the liquidation of assets from shuttered financial institutions while helping former clients regain financial standing.
