LTFRB meets GFIs to aid jeepney loan woes

The Land Transportation Franchising and Regulatory Board (LTFRB) is set to meet with government financing institutions to assist operators of modernized jeepneys struggling with their loan obligations under the Public Transport Modernization Program.

LTFRB chair Teofilo Guadiz III stated that a collaborative approach among LTFRB, GFIs like Land Bank of the Philippines and Development Bank of the Philippines, as well as other financing institutions is needed to ease financial burdens on jeepney cooperatives and operators.

Guadiz noted that there is a need for more flexible loan terms, grace periods, or possible restructuring packages to prevent operator defaults which could disrupt public transport service.

The dialogue aims to secure the welfare and sustainability of transport cooperatives who invested in modern jeepney units through loans supported by the Public Utility Vehicle Modernization Program (PUVMP).

Operators have expressed concerns over declining ridership, rising maintenance costs, and fixed amortization schedules that do not account for daily income volatility, highlighting the need for financial assistance under the PTMP.