Press Release
November 14, 2013

Nancy files resolution on loan payment moratorium for calamity-hit LGUs
Teams up with solon to propose Visayas rehab fund

Senator Nancy Binay urged government financial agencies and offices to impose a loan payment moratorium for a period of six months to one year and debt restructuring for local government units (LGUs) affected by various calamities that hit the country recently.

In a resolution, Binay proposed the "possibility of implementing a loan moratorium, for a period of at least six months to one year for all existing and outstanding loans with other government offices, agencies and instrumentalities as well as banks financial intermediaries and other international financial institutions."

The "inclusion of the implementation of loan moratoriums and debt restructuring from other government offices, agencies and instrumentalities, as well as banks, financial intermediaries, and other international financial institutions will surely make a difference," Binay said.

Binay also noted that the moratorium will help alleviate the financial burden of LGUs especially that the country is currently under the national state of calamity. This additional financial funding can be used for relief operations, rehabilitation and restoration efforts to disaster-hit government units, giving additional cash that can be used by LGUs to support their constituents.

Among the LGUs that will be included in the resolution were those affected by Super Typhoon Yolanda, the recent earthquake in Central Visayas and those affected in the Zamboanga conflict.

Binay is also closely working with Valenzuela Representative Sherwin Gatchalian to propose to both Houses of Congress to form a rehabilitation fund program for Visayas that can aid in the restoration and rebuilding efforts in the region.

"We will propose financial measures to source funding for the rehabilitation of the disaster-struck region," Binay said.

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