SSS president and chief executive officer Corazon de la Paz said the amnesty program, enforced from this month to June 15 this year, covers all types of homes loans that were either released directly to member borrowers or through the banks.
The program allows members, who were delinquent in paying their loan's monthly dues, to settle their obligations in full or by installment without penalties and with only half of the continuing interest.
"Members could restructure their remaining balance for a maximum 10-year term at lower interest," De la Paz said.
The program requires a minimum payment of P5,000 but the members can also settle their liabilities through a dacion-en-pago arrangement or property as payment.
The amnesty includes employers who are delinquent in remitting their employees' housing loan payments and those who have pending collection cases in court. It also involves installment buyers of acquired assets who have been remiss in their payments to the SSS.
Most of those with delinquent accounts are in Cebu, Metro Manila, Davao, San Pablo, Tarlac, Pampanga, Bacolod, Cagayan de Oro, Zamboanga, Baguio and Naga.
While the program stands to benefit the members, it will also enable the SSS to clean its books and improve the liquidity of the housing loan portfolio, said De la Paz.
De la Paz said SSS expects to collect up to P5 billion in principal and interest payments despite the condoning about P4.3 billion in penalties and continuing interests.
An added incentive to the program is a raffle draw, in which at least 20 member borrowers could win as much as P20,000 each, De la Paz said.
The amnesty program forms part of the P40 billion package of non-wage benefits to workers announced by President Gloria Arroyo in last year's May 1st Labor Day activities in Malacañang Palace. - Jasmin R. Uy