GSIS starts 1-year moratorium on housing loan amortizations

MANILA, Philippines – The Government Service Insurance System (GSIS), the state-owned pension fund for government employees, has started the implementation of its one-year moratorium program for members affected by typhoons Ondoy and Pepeng.

The moratorium particularly applies to members’ Housing Loan and Consolidated Loan (ConsoLoan) accounts.

The GSIS Board of Trustees earlier approved a one-year moratorium on loan payments to assist members affected by the typhoons.

The agency hopes the moratorium would enable victims to attend to more pressing financial needs such as food, clothing, relocation and repair of shelter.

“The moratorium is really for those who cannot afford to pay the monthly amortization of their Housing Loan or their ConsoLoan because they need to use their money for reconstruction and other repair works in the aftermath of Ondoy and Pepeng,” said GSIS president and general manager Winston Garcia.

The one-year moratorium program covers amortizations within the month of October 2009 up to September 2010. All Housing Loan and ConsoLoan accounts not declared in default as of Sept. 30, 2009 are eligible for the program.

Borrowers with arrears shall be allowed to avail of the moratorium. However, the moratorium period shall be limited to the difference between 12 months and the number of months in arrears.

All members who shall be granted consolidated and housing loans during the moratorium period shall not be allowed to avail of this program.

To avail of the program, eligible members need to inform their respective agency authorized officer (AAO) that they will avail of the one-year moratorium. The AAO, in turn, shall provide GSIS with a list of availing borrowers.

Borrowers of housing loan accounts whose payment of monthly amortization is through post-dated checks (PDCs) should notify the GSIS that they are availing of this program. They would be able to retrieve their checks corresponding to the moratorium period. They should also issue 12 new checks for the resumption of amortization effective October 2010. –Philippine Star