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GMA backs Salceda’s P86B plan
PRESIDENT Gloria Arroyo has approved the P86-billion 4-point demand-side liquidity strategy proposed by presidential economic adviser and Albay Gov. Joey Salceda to address the relief and rehabilitation concerns of victims of tropical storm "Ondoy" and typhoon "Pepeng".
The President announced her approval of Salceda’s comprehensive relief package during her recent Cabinet meeting at the National Disaster Coordinating Council (NDCC) headquarters at Camp Aguinaldo in Quezon City.
Topping Salceda’s proposed package is a one-year moratorium on salary and housing loan payments by Government Service Insurance System (GSIS) and Social Security System (SSS) members affected by Ondoy and Pepeng which ravaged the country in succession.
The moratorium on loan payments alone, Salceda said would result in higher take-home pay for some 700,000 GSIS and 4.8 million SSS members which would amount to P32-million additional cash flow for ordinary households.
The loan payment moratorium effectively overrides original plans by GSIS and SSS to provide incremental loans for members who need to apply for them. The moratorium does away with tedious paperwork for the two agencies.
The second major item in Salceda’s proposed strategy is a P35-billion support package for small businesses through a 5-year special rediscounting window for 91-day T-bills + 2% that would enable banks to restructure their exposure to affected enterprises given the disruption in their recurring incomes and permanent damage to their earning asset base.
The third component is a P15-billion home improvement loan program for Pag-IBIG eligible members of P150,000 each payable in 10 years on top of their outstanding loans.
The fourth item is the provision by PhilHealth of a three-month advance fund package to its accredited hospitals and clinics based on their average monthly reimbursements, which could amount to about P4 billion.
The package which was similar to what the President approved for Albay in 2006 to counter the adverse combined devastation of typhoons Milenyo and Reming and Mayon Volcano’s eruption. The measures assured the province a stronger platform for recovery and actual steady recovery after only a year and onwards.
"Once supply chains have been restored and survival needs provided, cash is the best form of social and economic relief after a catastrophic event since victims know better their needs, beneficiaries would be more judicious in their procurement and the benefits are direct and immediate," Salceda said.
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