MANILA, Philippines -- President Gloria Macapagal-Arroyo will sign a new law next that could save some 368,535 delinquent borrowers from losing their homes through foreclosure, Speaker Prospero Nograles said Thursday.

The Socialized and Low Cost Housing Loan Restructuring Act of 2008, contained in House Bill 4220 and Senate Bill 1987, will cover all socialized and low-cost housing loans from government financing institutions and agencies with at least three months of unpaid monthly amortizations, and of which the original principal amount does not exceed P2.5 million.

Nograles said the measure is part of the Arroyo administration's efforts "to shield the people" from the current economic crisis.

The arrears of the 368,535 delinquent homeowners the law is projected to benefit total about P66.69 billion.

"This measure will undoubtedly save many of our countrymen who face the grim prospect of losing their respective houses from joining the long list of the homeless," Nograles said.

The measure covers defaulting accounts even if the delinquent home borrowers have already availed of the benefits of previous restructuring programs.

All penalties and surcharges will also be condoned upon approval of the restructuring application.

The restructured original principal loan will only be charged an interest not higher than the original loan or not more than 12 percent, whichever is lower.