Iloilo SP seeks debt relief for transport, farmers

By Mariela Angella Oladive

The 15th Sangguniang Panlalawigan (SP) of Iloilo urged government financial institutions to consider a time-bound loan moratorium for borrowers affected by rising fuel prices.

Through Resolution No. 2026-365, the SP called on the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) to implement flexible repayment arrangements, including loan payment deferment, suspension of penalties and interest, and restructuring options.

The proposed relief covers transport operators, farmers, fisherfolk, and micro, small, and medium enterprises (MSMEs).

The resolution was adopted during the 38th Regular Session on April 14 following a Question Hour where transport sector representatives presented the worsening impact of fuel price increases on operations and income.

Cooperative leaders from Leon, Pavia, Sta. Barbara, New Lucena, and provincial transport groups reported that many public utility vehicle operators and drivers—both modern and traditional—are now operating on minimal margins or at a loss.

They said this has led to reduced trip frequency, shorter working hours, and adjusted income-sharing arrangements to sustain operations.

John Vincent Sardon of the Alliance of Provincial Operators and Drivers Transport Cooperative said their Cabatuan route was temporarily suspended due to daily losses ranging from PHP 23,000 to PHP 30,000.

He added that other routes were also scaled down, including in Miagao, where only 10 of 19 units now operate daily.

Sardon said declining income can no longer cover amortization, salaries, and maintenance costs, which are further strained by aging units and rising repair expenses.

Some employees were reassigned to other routes to mitigate income loss, he added.

“Before, we could manage. But now it is really difficult,” he said.

Joy Palmada of the Pavia Iloilo Jeepney Operators and Drivers Transport Cooperative also reported difficulty meeting LANDBANK loan amortizations amounting to about PHP 500,000, prompting reduced fleet operations.

The group has implemented adjusted work arrangements to avoid layoffs.

They requested LANDBANK to defer amortization payments to avoid delinquency, noting that the cooperative previously had no lapses in payment.

Transport cooperatives pay loan amortization under financing arrangements in the Public Transport Modernization Program, where operators acquire modern jeepneys and related fleet requirements through credit facilities from state financial institutions.

These fixed monthly repayments cover both principal and interest over a set loan term and are typically sourced from daily operational earnings, making them highly sensitive to fuel price increases, declining ridership, and reduced route viability.

Palmada also noted that traditional jeepney operators have requested lower daily rental fees due to rising fuel costs, with some rentals ranging from PHP 700 to PHP 800 per day.

“So even our operators are affected, as their incomes have also declined,” she said.

Vice Gov. Nathalie Ann F. Debuque spearheaded the measure and chaired the session’s discussions.

The SP also considered updates from national agencies, including the Land Transportation Franchising and Regulatory Board (LTFRB), which is set to expand its Service Contracting Program.

The Department of Social Welfare and Development (DSWD) is also set to distribute PHP 5,000 in fuel assistance to thousands of tricycle operators and drivers’ association (TODA) drivers in Iloilo.

The SP clarified that the resolution is an appeal for consideration and coordination with national government financial institutions.

It emphasized that any moratorium or restructuring program will still depend on existing lending policies and regulatory frameworks of LANDBANK and DBP.