NEA cuts loan rates for co-ops

MANILA, Philippines - National Electrification Administration (NEA), the government agency overseeing the operations of electric cooperatives (ECs), has reduced its lending rates for ECs.

Lending rates are now at eight percent from nine percent previously for loans with a repayment period of three to 15 years, and seven percent from eight previously for loans with a two-year repayment period, said NEA administrator Edita S. Bueno.

“As a policy, NEA periodically reviews its lending rates to determine if revision is warranted. NEA saw the need to study and review its current lending rate to provide an updated loan pricing that is fair, reasonable and competitive with other financing institutions,” Bueno said.

She said based on the Aug. 20, 2014 Philippine Dealing System-Treasury Fixing Rates (PDSTF), the reference rates are now at 4.3250 percent for a 10-year tenor and 5.3875 percent for a 20-year tenor.

The NEA board likewise approved the reduction of interest rates on ECs’ outstanding loans to nine percent per annum from 10 percent to 12 percent previously under certain conditions.