TO PROVIDE financial relief to closed bank borrowers and hasten the liquidation of closed banks’ loan portfolios, the Philippine Deposit Insurance Corporation (PDIC) extended the implementation of the Closed Bank Loan Incentive Program (CLIP) 2.0 until the end of 2024.
CLIP was first launched in 2021 as a pandemic relief measure for closed bank borrowers. With the positive reception of borrowers to CLIP and its significant contribution to the collection efforts of closed banks, it has since been enhanced and extended from January 2023 until year-end 2024.
Designed to incentivize borrowers of closed banks to settle their loan obligations, CLIP provides substantial discounts on loan principal and reduction or waiver of interest rates and penalties, preserving the creditworthiness of closed bank borrowers while ensuring optimal recovery for closed banks for the benefit of its creditors including uninsured depositors. As the statutory receiver of closed banks, the PDIC collects loan payments from borrowers and resolves loan accounts.
Under the extended program, closed bank borrowers who owe up to P5.0 million in principal balances can apply for incentives based on when their banks were closed and whether their loans are clean or secured.
Borrowers with clean loans from banks closed in 2023 and 2024 have until December 31, 2024, or one year from receipt of PDIC’s Notice to Borrowers, whichever comes later, to avail of the incentives under the extended program.
For borrowers whose banks were closed in 2022 and prior years and have not yet availed of the incentives under the program, they may still do so until December 31, 2024, regardless of whether their loans are clean or secured.
For more details on CLIP, closed bank borrowers can go to the PDIC website at www.pdic.gov.ph/CLIP, call the PDIC Public Assistance Hotline at (02) 8841-41-41 or the toll-free hotline 1-800-1-888-PDIC or 1-800-1-888-7342 during office hours, send an e-mail to the PDIC Public Assistance Department at clip-pad@pdic.gov.ph, or send a private message to the official PDIC Facebook page.
