LTFRB eyes ways to help modern jeep drivers with loans
The Land Transportation Franchising and Regulatory Board (LTFRB) will sit down with government financing institutions (GFIs) to assist operators of modernized jeepney fleets who are struggling to meet their loan obligations under the Public Transport Modernization Program (PTMP).
In a statement on Monday, LTFRB Chair Teofilo Guadiz III said there is a need for a “collaborative approach” among the LTFRB, the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP), as well as other financing institutions to ease the financial burden on jeepney cooperatives and individual operators who bought modernized units under the PTMP.
“We acknowledge the financial challenges faced by many of our modernized PUV operators. We are seeking a dialogue with our partner GFIs to explore more flexible loan terms, grace periods, or possible restructuring packages,” Guadiz said.
Financing institutions, he added, should consider a moratorium or recalibrated payment schemes, especially for cooperatives complying with LTFRB standards.
Consequences
“We cannot afford to let our operators default. If that happens, public transport service will be disrupted, and the entire modernization initiative will be undermined,” he stressed.
The LTFRB is set to coordinate with the Department of Transportation, Landbank and DBP to initiate “high-level discussions that may result in improved lending mechanisms, extended repayment periods, or government-backed subsidies.”
While many operators have supported the PTMP, many complain that the cost of modern units, ranging from P1.6 to P2.4 million, has remained a major obstacle to compliance.
Landbank and DBP offer a loan package amounting to 95 percent of the acquisition cost of the modernized jeepney unit. Borrowers, however, need to repay the loan within seven years at a fixed 6-percent per annum interest.
