GSIS sets aside P63.5 million to extend loan restructuring program until June 2022

MANILA, Philippines – The Government Service Insurance System (GSIS) has set aside P63.5 million to extend up to the middle of this year its loan condonation and restructuring program.

In a resolution published on Sunday, the state-run pension fund’s board, chaired by former Supreme Court chief justice Lucas Bersamin, approved the extension until June 2022 of the GSIS program for restructuring and repayment of debts (PRRD).

This one-time loan condonation program was first implemented during a one-year period starting December 2018 for inactive GSIS members with outstanding obligations.

The GSIS’s PRRD had been extended twice as well as also opened to members and pensioners so they could reduce their past due loans amid the COVID-19 pandemic.

The latest extension allowed acceptance of applications to Dec. 29, 2021, and their corresponding full or partial payments accepted until Jan. 31 of this year.

Upon the endorsement of the GSIS’s risk oversight committee last February, its board approved the extended PRRD from January to June 2022.

Both public-sector employees and pensioners with outstanding loans from the GSIS can avail of the PRRD.

The GSIS’s PRRD covers the following: consolidated loan (conso-loan); GSIS financial assistance loan (GFAL); educational assistance loan 2; emergency loan; regular policy loan; optional policy loan; home emergency loan program; real estate loan; restructured real estate loan; low-cost housing/deed of conditional sale; pension loan; pensioner’s emergency loan; and pensioner’s restructured loan.

The GSIS’s loan disbursements grew 4 percent to P151 billion last year from P145 billion in 2020 amid the harder times caused by the prolonged COVID-19 pandemic.

Beginning April 23, the GSIS will offer a member loan program with a higher credit limit, longer repayment period, as well as easier application requirements.

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