THE PHILIPPINE Deposit Insurance Corp. (PDIC) has enhanced and extended its Closed Bank Loan Incentive Program (CLIP) to help borrowers of shuttered banks settle their debts.

“Now known as CLIP 3.0, the program, which was launched in 2021, aims to help borrowers of closed banks maintain their creditworthiness and prevent the foreclosure of their mortgaged assets, by making it easier for them to settle their outstanding debts through discounts and waivers on the amounts they owe, provided that the discounted or reduced loan obligation is paid in full through a one-time cash settlement,” the PDIC said in a statement on Monday.

“As the statutory receiver of closed banks, the PDIC collects loan payments from borrowers of closed banks to augment the liquid funds for the settlement of claims of the banks’ creditors.”

The program’s qualifying principal balance threshold has now been raised to P10 million from P5 million previously to service more borrowers of closed banks.

“Discounts and waivers are also available and vary based on the year the bank was closed, and on whether the loan is clean, secured by a chattel mortgage or pledge, or by a real estate mortgage,” the PDIC added.

These incentives include discounts on borrowers’ outstanding principal balance and waived or reduced interest, penalties, and other charges, among others. — AMCS

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