GSIS, Pag-IBIG sign pact for gov’t employees, pensioners

November 14, 2011 11:30 pm 

MANILA, Nov. 14 — Officials of the Government Service Insurance System (GSIS) and the Home Development Mutual Fund (MDMF), otherwise known as Pag-IBIG Fund, signed Monday a credit facility agreement wherein GSIS gave Pag-IBIG P5 billion to finance the housing loans of its members and pensioners.

GSIS President and General Manager Robert Vergara and HDMF Chief Executive Officer Darlene Berberabe spearheaded the event, which is in line with GSIS’s decision to let go last April of its direct house lending program because of lack of expertise on this.

Vergara said the decision is aimed at synchronizing their “efforts in the implementation of the government housing program and to avoid duplication with the KSAs’ (key shelter agencies) functions.”

“More importantly, this agreement proves that the pension fund continues to be a vehicle for realizing the homeownership dream of our stakeholders in our role as a partner of Pag-IBIG,” he stressed.

Signing of the MOA was witnessed by Vice President and concurrent Housing and Urban Development Coordinating Council (HUDCC) Chairman Jejomar Binay, GSIS Executive Vice President for Finance Sector Benedicto Jose Arcinas, and HDMF Deputy Chief Executive Officer for Support Services Cluster Emma Linda B. Faria.

GSIS has been offering housing loans since mid-50s but its present Board decided to remove this from the government pension fund’s operations because of lack of skill to do it.

For last year alone, GSIS extended only P600 million in housing loans to its more than 500 members compared to the P5.5 billion worth extended by Pag-IBIG Fund to over 11,000 government employees.

Vergara only disclosed that half of their housing loan portfolio, which is more than 16,000 housing units, have either been foreclosed or cancelled.

“It has been a difficult decision for us to stop direct home lending for our members but we are, above all, obligated to them to ensure that their contributions are managed prudently for their greater benefit,” he said.

The GSIS chief added that they have asked Pag-IBIG to put up a special lane for GSIS members and pensioners to facilitate the processing of their housing loans. (PNA)

DCT/JS/ssc

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