Most of these loans date back from the 1980s and 1990s.
Acting CDA Executive Director Oscar Camacho said they can extend the loan term payment up to 30 years but the status of the borrower will be checked every three years to determine if he can continuously pay the interest rate.
“We are still entertaining a lot of clients who are in need of help with their payments, so if they need to revise or restructure their payments they can still come to us,” he said.
CDA, he added, wants to help borrowers cope with the impact of the bad economy.
“If the accrued interest is just overly burdensome, we can set aside or freeze the payment of interest,” he said, adding that they are processing as low as 2 percent accrued interest for borrowers who need help.
CDA has 194 borrowers of whom 63 percent are delinquent. These loans are valued at $15.76 million.
But the figure does not include other outstanding balances involving the debt relief program, judgments, bankruptcies, buybacks, and matured loans.
CDA said if these are factored into the equation, the delinquency rate will be 80 percent.
As of December last year, CDA had loaned out a total of $36.275 million.
As of Nov. 2007, the CDA had 30 loans with outstanding balances and accrued interests totaling some $13 million that had been brought to court.
According to Camacho, CDA’s “aggressive collection efforts” are expected to improve its delinquent loan ratio.
