MANILA, Philippines?Vice President Noli De Castro has committed the Housing and Urban Development Coordinating Council to the fast-tracking of the implementing rules and regulations for the newly signed Republic Act No. 9507, which provides for a loan restructuring and condonation program for delinquent housing loans all over the country.

The law, signed by President Gloria Macapagal-Arroyo on Monday, would benefit nearly 370,000 families with delinquent loans of not more than P2.5 million each, according to the Vice President.

?The program aims to help home loan borrowers not to lose their houses despite having difficulties in paying their monthly amortizations,? De Castro said in a statement.

A government inter-agency committee is tasked to promulgate the IRR within 60 days. The committee is headed by the HUDCC and composed of the government financial institutions concerned, namely the Government Service Insurance System, Social Security System, Pag-IBIG Fund, National Home Mortgage Finance Corp., Social Housing Finance Corp., Home Guaranty Corp. and National Housing Authority.

De Castro, concurrent HUDCC chair, said the IRR would be issued not later than end of November 2008.

The Vice President also assured the public of the financial stability of government lending institutions and agencies involved in the program, with the law?s provisions against abuse.

He said the governing boards of the lending institutions have been empowered to give reasonable discounts on loan interest as an incentive to borrowers who would pay their amortizations on time.

According to a briefing paper issued by the HUDCC, housing loan borrowers who have at least three months of unpaid monthly amortizations with government financing institutions and housing agencies may apply for loan restructuring and condonation under the program.

The law covers housing loan accounts with the principal loan amounting not more than P2.5 million each.

The program is open even to accounts that have already availed of a previous restructuring and condonation program.

All penalties and surcharges of a loan approved for restructuring under the program shall be condoned. A reasonable portion of the accrued interest may also be condoned at the discretion of the respective boards of the concerned GFIs or housing agencies.

The remaining accrued interest will be treated as a non-interest bearing principal to be equally paid during the term of the restructured loan.

The restructured loan will also be charged an interest rate equal to that of the original loan, or not more than 12 percent, whichever is lower.

To further lower the monthly amortizations, the payment period may be extended up to the borrower's 70th year.

No processing fees or downpayment shall be paid to apply for loan restructuring and condonation.

The program will be implemented for 18 months from the issuance of the IRR, but the governing boards of the respective institutions are given the authority to continue the program beyond that period.