THE Government Service Insurance System (GSIS) said on Tuesday that it reduced its loans and receivables at the end of April by 7.84% compared with the end of 2022 after restructuring loans in order to provide relief to borrowers.
The pension fund for public-sector workers said in a statement that outstanding loans totaled P42.01 billion at the end of April, down from P45.58 billion at the close of 2022.
Loans have fallen 39% since 2016, when the outstanding loan portfolio was P74.25 billion, GSIS President Jose Arnulfo A. Veloso said, adding that the Commission on Audit (CoA) recently issued audit findings that the pension fund had uncollected loans in excess of P45 billion.
Mr. Veloso said the GSIS has been actively forgiving or restructuring loans to provide relief to borrowers.
“One such initiative enabled inactive members to repay loans over a three-year period at a 10% annual interest rate,” GSIS said.
It also cleared up discrepancies in the accounts of the GSIS Financial Assistance Loan (GFAL) program, which was launched in 2018.
GSIS said the GFAL Multi-Purpose Loan program was overhauled, with borrowers given the option to consolidate their loans.
Partnerships with third-party companies also bolstered loan collection, the GSIS said.
These partnerships include the Credit Information Corp., CIS Bayad Center, Inc., M. Lhuillier, Land Bank of the Philippines, and UnionBank of the Philippines, Inc.
CoA expressed support for the pension fund’s collection efforts and reiterated CoA Memorandum Circular No. 2017-015 issued on Aug. 8, 2017, which outlines the rules for deductions related to premium and loan payments.
GSIS said it is committed to comply with the commission’s recommendations and to improving its processes. — Aaron Michael C. Sy