‘DBP willing to waive penalties on loans’

THE Land Transportation Franchising and Regulatory Board (LTFRB) announced Thursday that the Development Bank of the Philippines (DBP) is willing to temporarily waive or suspend penalties on overdue loans of transport service entities that acquired modern jeepneys under the government’s modernization program. LTFRB Chairman Vigor Mendoza II said the loans were obtained by transport cooperatives and small companies to finance the purchase of modern jeepneys under the Public Transport Modernization Program. Mendoza said many of these units are financed through DBP’s Program Assistance to Support Alternative Driving Approaches. He said the LTFRB wrote to DBP President and CEO Michael de Jesus requesting a temporary waiver or suspension of penalties on delayed payments, citing the financial strain caused by surging fuel prices. “The significant increase in petroleum costs has placed additional pressure on transport operators, affecting their ability to meet loan obligations,” Mendoza said. In its reply, DBP acknowledged that the Middle East situation has driven up global oil prices and weakened the peso, resulting in higher operating expenses for the transport sector. “DBP may consider granting a temporary suspension or waiver of penalties on a case-to-case basis, subject to approval of the appropriate authorities,” the bank said in its response. Mendoza welcomed the bank’s response, saying the measure would help operators stabilize their finances and sustain public transport services. “This will be a big help to operators struggling with rising operational costs,” he said, adding that the move reflects coordination among government agencies to support the transport sector.

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