The Government Service Insurance System (GSIS) said it has been able to reduce its total loan receivables to P42 billion as of April.
Wick Veloso, GSIS president and general manager, said in 2016, the pension fund’s receivables stood at P74.25 billion. This was cut by 39 percent to P42.01 billion in 2023.
“In the first four months of 2023 alone, we reduced our due and demandable loans by P3.57 billion or 7.83 percent from its 2022 balances of P45.58 billion, bringing our April 2023 level down to P42.01 billion,” he added.
Veloso attributed the reduction to several measures including condonation and restructuring programs designed to alleviate borrower debts.
One such initiative enabled inactive members to repay loans over a three-year period at a 10 percent annual interest rate.
In addition, GSIS has undertaken extensive reconciliation of loan accounts to spot discrepancies and correct them promptly.
In 2018, the pension fund launched the GSIS Financial Assistance Loan and overhauled its Multi-Purpose Loan programs, providing borrowers with options to consolidate their existing loans.
GSIS has also collaborated with external partners, including the Credit Information Corporation and payment service providers Bayad, M. Lhuillier, LandBank, Union Bank, to bolster loan repayment.
The pension fund is set to engage a third-party collection agency in the coming months.
