Deputy House Speaker and Bacolod Rep. Alfredo Abelardo “Albee” Benitez is coordinating with banking institutions to establish possible partnerships with modernized jeepney cooperatives, many of which are currently facing loan defaults.
“We are coordinating with banks to enter into partnerships [with operators] instead of straight loans,” Benitez said on Friday, August 14.
“I called Landbank, and they are studying what can be done. The suggestion is that instead of foreclosure, they enter into partnerships with modern jeepney operators so they can continue operating,” he said.
Under this proposed arrangement, operators would no longer be burdened with monthly loan amortizations. Instead, operational profits would be shared between the banks and the cooperatives, Benitez explained.
Meanwhile, Land Transportation Franchising and Regulatory Board Chairman Vigor D. Mendoza II said on Wednesday that he has asked financial institutions to halt the foreclosure of modernized jeepneys in Bacolod City.
Mendoza said he met with representatives from various financial institutions on Tuesday, and they agreed to temporarily pause foreclosure proceedings.
“If they repossess the vehicles, what will they do with them” Mendoza said, adding that he has requested a complete list of involved banks from operators to initiate formal negotiations this week.
Mendoza attributed the operators’ financial strain to high fuel costs and static fare rates. While operators are feeling the pinch, raising fares requires presidential approval due to its inflationary impact on basic consumer goods.*
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