Pag-IBIG to increase members’ contributions
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Wed, 03 Apr 2019 18:16:36 +0000
STATE-run Home Development Mutual Fund or Pag-IBIG is firming up a plan to increase its members’ monthly contribution rate two years from now.
“In a special meeting our board said the increase should be P200,” Eduardo del Rosario, Housing and Urban Development Coordinating Council and Pag-IBIG Fund Board of Trustees chairman, announced in a press conference on Wednesday.
If implemented, the employers’ and employees’ share of a minimum P200 monthly contribution to Pag-IBIG of P100 each would rise to P400 by 2021.
Pag-IBIG Chief Executive Officer Acmad Rizaldy Moti said increasing the contribution was needed to prolong the fund’s life and boost financing for housing loans.
Moti has said that the fund needs to increase its financing to P100 billion by 2022 from the current P75 billion.
He also explained that the absence of any fund sourcing activity would prompt the fund to borrow money elsewhere to sustain its lending activities.
“If we borrow amid high interest rates, the interest rate of our lending activities will also go up,” he noted.
Pag-IBIG has said that its members’ savings totaled P40.17 billion last year, 11 percent higher than in 2017.
Housing loan takeout also rose by 16 percent to P75.31 billion, of which P8.36 billion was released for socialized housing, benefiting 21,389 borrowers.
In terms of cash loans, the fund released P49.23 billion in short-term loans to 2,428,918 members, including multi-purpose loans worth P46.96 billion,.
It also maintained a high-performing loan ratio of 90.26 percent, indicating that nine of 10 housing borrowers religiously paid their obligations.
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