SSS reduces interest for house repairs

State-run Social Security System (SSS) cut down the interest rates of its loan window for home repairs and improvements from 13 percent to 9 percent to help members affected by tropical storm Ondoy.

The Department of Energy also assured that oil firms would not raise the prices of their liquefied petroleum gas (LPG) while private firms like Manila Water also took steps to assist victims of Ondoy.

“We lowered the interest rate as a special consideration to our members whose homes were damaged by the storm that brought widespread floods in Metro Manila and other provinces last weekend,” said Romulo Neri, SSS president and chief executive officer.

SSS grants a maximum loan of P300,000 for house repairs and improvements, payable for up to 20 years. Deadline for filing of applications is December 31, 2009.

The loan is open to active members with at least 12 months continuous contributions or a minimum total of 24 monthly premiums.

Neri said that the loan may be used for major repairs, extension and expansion, construction of concrete fence and steel gate and installation of deep well and motor pump.

Acceptable collateral is a first mortgage on the lot and house to be repaired or improved, or a joint mortgage with SSS-accredited banks.

“We further liberalized our policy by allowing members to borrow even with existing house repair and improvement loans with SSS or the National Home Mortgage Finance Corporation,” Neri said.
“The total amount of their first and second loans must be within the P300,000 limit.”

Members living in Metro Manila can file their applications at the Real Estate Department at the fifth floor of the SSS corporate headquarters in Diliman, Quezon City, while those outside the National Capital Region can go to the Housing and Asset Management Section of SSS cluster offices in major cities.

On Thursday, SSS announced that it was offering early renewal of loans to its qualified members as assistance to those who were affected by Ondoy.

A member must have paid at least 50 percent of the existing loan to avail itself of the program. The maximum salary loan available is P24,000.

The SSS salary loan is payable in two years with a two-month grace period before start of amortization payments. Applicants must have at least 36-posted contributions, six of which made within the past 12 months.

About 90,000 members are expected to benefit from the early loan renewal program.

Applicants will be required to present their SSS biometric card or two valid IDs, one of which should have a recent photo, when they file their applications at SSS branches.

No LPG price hike

The Energy department assured that oil firms would not raise cooking gas and lubricant prices to help victims of Ondoy.

“We should not see any increase in price of liquefied petroleum gas and so this should be welcome news to the public who are still suffering from the consequences of Ondoy,” Energy Secretary Angelo Reyes said.

From an average of $586 per metric ton in September, the international contract price for LPG, which is set on a monthly basis by suppliers, rose by $3.00 a barrel.

The increase would have redounded to a price hike of P0.20 a kilogram in cooking gas prices locally.

But Reyes said that the increase does not warrant a corresponding uptick in local prices given the condition of areas affected by Ondoy.

“The increase price of the imported LPG of course is very minimal and therefore I see no reason why there should be any increase in the price of local LPG,” he added.

But Reyes said that his pronouncements were by no means a “price control” since the retail petroleum industry is deregulated.

Pilipinas Shell Petroleum Corp. already confirmed that it would not be moving its prices.

Other oil firms have yet to say whether they would also be keeping prices as is as of press time. But given the Energy department’s pronouncements and Shell being a major player in the LPG sector, analysts expect other companies to follow suit.

Reyes said that the Energy department is coordinating with the power sector to make sure that another typhoon on its way to hit the country would not affect the supply of electricity.

“We will be preparing for this [Typhoon Pepeng] and our energy facilities will be alerted and will be on the job to take the necessary actions should any of these energy or power installations be affected by typhoon,” he added.

Manila Water takes steps

Manila Water announced also on Friday it has temporarily suspended the implementation of its rate adjustment this month to help those affected by Ondoy.

In a disclosure to the Philippine Stock Exchange, Manila Water said that the Metropolitan Waterworks and Sewerage System’s (MWSS) approved rate adjustment was postponed from October 2 to November 1 this year.

“We hope this postponement will further erase the burden on the customers affected by the disaster,” said Lizelle Zamora-Dimacuha, Manila Water legal and corporate governance officer.

The Ayala-controlled company said that it has to adjust rates because of the foreign currency differential adjustment (FCDA) component of the water bills of Manila Water customers.

MWSS allowed Manila Water to adjust its FCDA component from 1 percent to 1.89 percent of the basic charge of P0.21 to P0.40 per cubic meter, an increase of P0.19 per cubic meter.

Mania Water is undertaking service improvement program both in water supply and sewerage and sanitation in its service area, which includes the cities of Mandaluyong, Pasig, San Juan, Marikina, Pateros, Makati, southeastern part of Quezon City and parts of Manila.

The company is also supplying Taguig City, Antipolo City, San Mateo, Rodriguez, Cainta, Taytay and Angono. It also started providing services to the towns of Baras, Binangonan and Jalajala in Rizal.

Ayala Life’s grace period

Various companies have extended the grace period for payments by its clients affected by Ondoy, including Ayala Life Assurance Inc.

In a statement, Maria Asuncion Martin, business director officer in charge of Ayala Life, said that they are extending the grace period for payments of policies to policyholders residing in the calamity areas declared by the National Disaster Coordinating Council.

She added that the extension granted was for an additional 30 days, making up a total of 61 days grace period covering due dates from August 26, 2009 to October 26, 2009. All payments remitted within 61 days from due date of the premium and old loan interest would be accepted without interest.

Earlier, Citibank offered one-month payment holiday starting Thursday to its credit card holders and savings loan borrowers affected by Ondoy. –Lailany P. Gomez, Euan Paolo C. Añonuevo And Chino S. Leyco, Manila Times