GSIS head Daniel Lacson Jr. said GSIS has 11 billion pesos worth of non-performing assets. Most of it are unpaid loans from 17,000 housing projects.
The agency’s decision was prompted by its current financial position. According to several sources, GSIS is now on the brink of financial crisis stemming from its uncollectibles and outstanding external loans amounting to US$ 1 billion.
Previous commitments and placements made by the past board placed the agency in jeopardy.