P82-B housing program is sector's contribution to pump-priming drive

Written by Rizal Reyes / Correspondent

Thursday, 29 January 2009 02:32

IF America’s worst economic crisis since the Great Depression, which has since evolved into a global recession, sprang from its subprime housing mess, in the Philippines the housing sector is looking to be part of the solution to the slowdown. In fact, it will be a keyplank of the multibillion-peso effort to stir up an economy buffeted on vital fronts: shrinking electronics exports and massive retrenchments of Filipino workers, whose remittances have shored up the economy for nearly four decades. The government’s housing program will use P82 billion as its contribution to the pump-priming efforts of the Arroyo administration to alleviate the people’s misery amid the global economic crisis, Vice President Noli de Castro said last Friday. At the Pag-IBIG fund board meeting, de Castro said the fund will come from the expected cash inflow of Pag-IBIG this year and will be used for housing and multipurpose loans of Pag-IBIG members. “We should all contribute whatever we can to protect our people from the possible negative effects of the global economic slowdown. While we remain confident that our economic fundamentals are strong, we must not be too complacent,” said de Castro, also the chairman of Housing Urban and Development Coordinating Council (HUDCC). He ordered Pag-IBIG management to review the availment procedures and documentary requirements of its loan programs. Pag-IBIG, he said, “should further streamline its processes so that it can fully utilize the P82 billion allocated for this year, without sacrificing the sustainability of the Fund and continued financial strength of the corporation.” He stressed that it “would be difficult if the restrictions are in the availment procedures. As I told management, they should begin thinking out of the box and begin focusing on their developmental objectives. This can be done without sacrificing the viability of Pag-IBIG.” The Vice President sought the support of the board members to work on various initiatives. “I got the commitment of the board members to assist me in working out the policy directions that I have set forth to ensure that we are able to heed the call of the President. I have constituted three board committees, namely, corporate governance, audit and risk, and investment.” De Castro directed all the shelter agencies under HUDCC to focus on the implementation of their respective mandates. The National Housing Authority will accelerate its resettlement programs so rules and regulations of the government housing sector are followed by all concerned.