Cash will spur rehab, says Salceda
PRESIDENTIAL economic adviser Joey Salceda has proposed an P86-billion "demand side liquidity package" for victims of Ondoy in Metro Manila and in 27 provinces.
Salceda, also Albay governor, said his proposed measures include a one-year loan payment moratorium by the Government Service Insurance System and Social Security System for their affected members; a P150,000 incremental home improvement loan improvement for affected and eligible Pag-IBIG members; a three-month advanced monthly average reimbursement by PhilHealth to accredited hospitals and clinics; and for Bangko Sentral ng Pilipinas to set up a P35-billion five-year special rediscounting window for banks to refinance loan exposures to individuals, entrepreneurs and SMEs (small and medium enterprises) at 91-day T-bill plus 2 percent.
"Once supply chains are restored and survival needs have been provided, cash is the best form of social and economic relief after a disaster since victims know better their needs. Beneficiaries would be more judicious in their procurement and benefit is direct and immediate," he said.
Salceda said that global repayment moratorium is more pervasive and direct in impact (more take home pay); easier to execute (less effort for members and less paper work for SSS/GSIS and would allow the two institutions to keep within legislative ceilings on loans since both GFIs are now slightly above their ceilings), and would not unduly affect their actuarial viability.
Aside from directly benefiting households and SMEs, Salceda said the package of measures that will involve some P86-billion, would have minimal impact on the deficit of the national government.
Vice President Noli de Castro, concurrent chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Home Development Mutual Fund or Pag-IBIG Fund Board of Trustees, announced additional relief assistance for Pag-IBIG members with housing loans and whose houses have been damaged by Ondoy.
"We are heeding the clamor of Pag-IBIG members to alleviate their debt burden in the aftermath of typhoon Ondoy, by extending three months’ moratorium on payment of their amortizations," De Castro said.
The moratorium and the home rehab program apply to affected Pag-IBIG members from Regions 1, II, III, IV-A, IV-B and V as well as the National Capital and the Cordillera Autonomous Regions.
The member-borrower must be updated with his contributions as well as with his short-term and housing loan payments.
The moratorium started Sept. 26, 2009 and will expire on Dec. 31, 2009.
Applications for the loan moratorium may be filed with the Pag-IBIG branches where the loan is maintained within 30 days starting Oct. 5.
De Castro also approved a moratorium on the loan payments of beneficiaries under the Community Mortgage Program (CMP) implemented by the Social Housing Finance Corporation and the relocation programs of the National Housing Authority.
Under the Pag-IBIG’s home rehab loan program, De Castro informed that members can borrow up to a maximum of P150,000 at eight percent interest rate.
Members must have made at least 24 months of contribution at the time of application, not more than 65 years old and must be insurable, has the legal capacity to acquire real property and has passed the credit, employment and business checks of the Fund. Members whose housing units have been foreclosed, cancelled or bought back are excluded from availing the new program.
Members can avail of the rehabilitation loan within 60 days starting Oct. 5.
Senate President Juan Ponce Enrile and Sen. Panfilo Lacson urged the Department of Finance to defer the imposition and collection of documentary stamp tax on remittances to help alleviate the plight of families of OFWs affected by Ondoy and Pepeng.
Enrile said the deferment of the DST will allow affected OFWs to get back on their feet, and at the same time encourage them to course their remittances through legal channels and foreign exchange remittance companies.
SHORT-TERM JOBS
The Department of Labor and Employment has activated an emergency employment assistance program to provide short-term jobs for residents in areas hardest hit by Ondoy.
Labor Secretary Marianito Roque said beneficiaries of the emergency employment program will come mostly from the National Capital Region, Regions III (Central Luzon) and IV-A (Calabarzon).
The program targets to benefit 100 workers each in Marikina, Quezon City, Pasig, Pateros, and Taguig; 50 each in Caloocan, Malabon, Navotas, and Valenzuela in Camanava; and 50 each in Muntinlupa, San Juan, and Mandaluyong.
In Central Luzon, the program aims to assist 200 affected workers in Bulacan and another 100 in Pampanga. In Calabarzon, it seeks to help 150 affected workers in Cavite and another 100 affected workers in Rizal. – Jocelyn Montemayor, Evangeline de Vera and JP Lopez
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