CBMPC Implements Major Policy Amendments in Restructuring Past Due Accounts

Consistent with the CBMPC’s strategy of implementing remedial management on past due accounts in order to reduce its past due rate and help those member-borrowers in settling their outstanding obligations during the pandemic, the following major policy amendments in the restructuring of past due accounts have been implemented:

1. Restructuring of the past due accounts even without the 50% payment on the principal loan amount.

2. Reduction in interest rate from 5% to 2.5%per month (applicable to those borrowers whose loans still carry an interest rate of 5%a month).

3. Percentage of waiver of unpaid interest subject to two main factors which shall be used as criteria:

• The period from the date of last payment (i.e., one year from last date of payment) – with 60% weight; and
• The percentage of total paid interests over the approved loan – with 40% weight

4. Waiver of penalties incurred during the pandemic period.

5. Amortization of the required share capital together with the restructured loan

6. Requiring the restructured loans to be covered by the Cooperative Insurance System of the Philippines Loan Payment Protection Insurance.