Proponent: Hon. Francisco M. Mendoza
Date Filed: April 14, 2026
This proposed ordinance provides financial relief to micro-enterprises and farmers in Naga City by suspending interests, surcharges, and penalties on government-extended livelihood loans. Spurred by the fuel price surge caused by Middle East conflicts, the measure aims to protect the local economy’s “backbone” from liquidity problems. While the loan principal remains due, the suspension eases the burden on borrowers through December 31, 2026, or until the national energy emergency is lifted.
Highlights of the Proposed Ordinance
-
Fuel Crisis Response: Addresses the “massive and unprecedented” spike in fuel costs that has hampered the ability of small businesses and farmers to pay debts.
-
Targeted Beneficiaries: Specifically covers loans managed by Metro PESO for entrepreneurs and SARIG Naga Loans for farmers under the City Agriculture Office.
-
Relief Period: The suspension applies to payments due from March 1, 2026, until December 31, 2026, or the end of the National Energy Emergency.
-
Principal Still Due: Only extra charges are frozen; borrowers are still required to pay the principal amount of their loans as originally agreed.
-
Advance Payment Credits: Any penalties or interests already paid since March 1, 2026, will not be refunded but instead applied as advance payments toward the loan principal.
-
Automated Billing Adjustments: Metro PESO and the City Agriculture Office are mandated to automatically update billing statements to reflect the relief.
-
No New Accruals: While penalties incurred before March 1, 2026, remain due, no additional interest or charges will be added to them during this relief period.
- Proposed