MANILA, Philippines – President Arroyo has ordered state pension funds to defer collecting loan repayments from its distressed members to allow them as well as the economy to recover from the devastation caused by tropical storm “Ondoy” by freeing up money for consumer spending.
The President said she talked with Social Security System president Romulo Neri and Government Service Insurance System (GSIS) head Winston Garcia to implement a one-year payment deferral system for salary and housing loans of the two pension funds.
“This (one-year deferment in loan payments) can provide P32-billion liquidity because they (SSS and GSIS members) will have higher take-home pay if they won’t have to pay for one year,” Mrs. Arroyo told The STAR in a pooled interview in her office at the National Disaster Coordinating Council in Camp Aguinaldo.
Last Friday, the President declared the entire country under a state of calamity to allow the public to prepare for coming weather disturbances and authorities to quickly tap calamity funds.
She said there is a need to continue to promote trade and investments and that could be helped by ensuring liquidity that would allow families to spend “because that’s what’s been saving our economy, consumption.”
She said she directed Health Secretary Francisco Duque III to advance three months’ worth of reimbursements of his department to government hospitals.
Vice President Noli de Castro will also implement an incremental home improvement loan of P150,000 for eligible Pag-IBIG Fund members, whose homes were damaged by storm Ondoy and typhoon “Pepeng.”
“If 100,000 (Pag-IBIG) members avail themselves (of the loan), these can lead (to a liquidity) benefit of P15 billion. So we’re very hard at work to keep liquidity to keep consumption spending, to keep investments,” the President said.
Mrs. Arroyo earlier announced that government-owned and controlled corporations and other agencies are now offering various financial assistance packages totaling P10 billion for families and businesses badly hit by Ondoy.
The GSIS will grant an emergency loan of P20,000 for each qualified member while the Development Bank of the Philippines (DBP) will have a rehabilitation program in the form of moratorium on interest and principal payments for affected clients, displaced persons and other victims.
The DBP will also offer restructuring through loan repayment extension, interest rate reductions, additional loans if viable, as well as close monitoring of loans for “faster recovery,” she said.
The President also directed that automated teller machines of government banks to remain in full operation.
The Pag-IBIG Fund, De Castro said, has put up dedicated windows in all its branches to process calamity loans for members in calamity-hit areas and P3 billion has been allocated for this purpose.
Mrs. Arroyo said the Land Bank of the Philippines would offer “remedial measures,” including loan restructuring and refinancing, for the infrastructure and livelihood projects financed by the bank.
Countryside financing institutions whose loan portfolio have been affected by the typhoon can be granted a concessional loan up to P5 million per institution and the LandBank will facilitate the release of guaranty claims under the agriculture fund pool of the Department of Agriculture.
Labor Secretary Marianito Roque said his agency would also grant interest-free loans of P10,000 for each qualified family of overseas Filipino workers.
Neri said the directors of the pension fund would meet today to finalize the details of a P100-million donation to the national government.
The SSS will also reactivate its housing repair and improvement loan package as well as early renewal of salary loans to qualified members, he said, adding the package could total P5 billion.
Education Secretary Jesli Lapus said his agency would open up its provident fund for emergency loans at P20,000 per qualified member at six percent interest. –(The Philippine Star)
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