ILOILO CITY (PIA) -- Borrowers of 328 closed banks nationwide as of December 2022 can now see hope with the Philippine Deposit Insurance Corporation (PDIC) through its Closed Bank Loan Incentive Program (CLIP).

CLIP 2.0 offers incentives and discounts for those with outstanding principal loan balance P5 million and below.

PDIC, in partnership with the Philippine Information Agency 6, disclosed during the PIA Kapihan at Citadines Amigo Hotel in Iloilo City that the 124,788 borrowers of the 20 closed banks in the region may avail of the CLIP which will end by December 2023.

To date, PDIC records show that there are 689,056 total number of loan accounts amounting to a total outstanding principal balance of P44.89 billion.

Borrowers with clean loans in banks closed starting in 2022 may avail of the CLIP 2.0 incentives with a 15 percent discount on outstanding booked interest (interest recorded before closure), penalties and other charges and full waiver of unbooked interest (interest recorded after closure), penalties, and charges within one year from December 21, 2022 or from their receipt of the Notice from the PDIC, whichever comes later.

Meanwhile, borrowers, either with clean loans or secured loans, in banks closed in 2021 and prior years, who were not able to avail of the incentives under the original CLIP program, may avail of the CLIP 2.0 incentives with a 30 percent discount on clean loan outstanding principal, booked interest, penalties, and other charges and full waiver of unbooked interest, penalties, and charges.