QuestionsQuestions (GSIS Resolution NO. 48)
GSIS Resolution No. 48 is an internal board resolution of the Government Service Insurance System (GSIS) that approves a specific policy action: a condonation program for certain outstanding service loans declared in default, plus the restructuring of the remaining balances through the consolidated loan program.
The program covers service-oriented loans declared in default as of December 31, 2007.
The resolution provides for 100% condonation of penalties and surcharges.
The resolution provides for a 50% waiver of interest.
After deducting the condoned amounts, the remaining loan balance is restructured through the Consolidated Loan Program.
It indicates that GSIS, through its board resolution, grants the waiver/condonation without requiring a corresponding negotiated agreement from each borrower for the condoned portions; it is implemented under GSIS’s authority via the program.
It sets the cutoff date for loans to be considered “declared in default” for purposes of inclusion in the condonation and restructuring program.
It directs the Senior Vice President (Corporate Services Group) to implement the program; it also involves the Vice President (Public Affairs Office) to conduct an information drive; and it requires reporting by the SVP (CSG) to the Board.
The resolution directs the SVP (Corporate Services) in coordination with the VP (Public Affairs Office) to conduct an information drive regarding the program.
The resolution directs the SVP (CSG) to submit a report to the Board after six (6) months.
The report must cover the impact of the program and the financial implications on the Funds of the System.
The resolution states that, after condonation, the remaining balance is restructured through the Consolidated Loan Program, meaning that the restructuring terms follow that consolidated program’s framework.
It explicitly states that the remaining balance is restructured only after deducting the condoned amounts through the Consolidated Loan Program, establishing a step-by-step computation and implementation.
It specifically condones penalties/surcharges and waives interest, but it restructures the remaining balance after deducting condoned amounts. This implies principal (or the rest of the outstanding amount) is not fully condoned but is subject to restructuring terms.
It states it was adopted on 5 March 2008 during Board Meeting No. 5. This indicates formal board approval and reflects internal governance procedures within GSIS.