Senator calls for lower loan interest rate on modern public transport
A SENATOR asked transportation authorities to reduce the interest rate on loans for public vehicles procured under the modernization program to 4% from 6% to lessen the burden on operators and drivers. In a statement on Wednesday, Senator Grace Poe-Llamanzares urged the Land Transportation Franchising and Regulatory Board and the LandBank of the Philippines to cut the interest as the sector was hit hard by the pandemic. “If we want to really help our public transport sector transition to PUV (public utility vehicle) modernization, all support must be extended to our operators and drivers who have been among the hardest hit by the pandemic,” Ms. Llamanzares, chair of the Senate committee on public services, said in a statement. Danilo C. Yumul, chairman of the Confederation of Drivers and Operators in Central Luzon, said during the Senate committee hearing on Tuesday that drivers and operators cannot borrow money to buy modern units because of the interest rate and the loan term. He added that drivers could not afford the P40,000 monthly payment for a new vehicle even before the pandemic. Ms. Poe-Llamanzares said the interest rate reduction can serve as a subsidy to the drivers and operators. The Senate on Tuesday tackled Senate Bill No. 867 or the Just and Humane PUV Modernization Act, which proposes that government provide financial assistance of not less than 10% of the total price per unit and the interest rate on loan amortization should not exceed 4%. —