DAVAO CITY — State-run Home Development Mutual Fund, or Pag-IBIG Fund, issued P7.33 billion worth of loans in 2017 in Mindanao, up 10% from a year earlier.
Loans issued in 2017 covered 8,063 housing units, of which 1,688 were categorized as social housing units.
“Our strong performance in home lending last year, which benefitted a significant number of low-income members, reflects our support to the social protection agenda of President Rodrigo R. Duterte,” Pag-IBIG Fund Chief Executive Officer Acmad P. Moti said in a news conference held in the city Friday.
Mr. Moti also announced that Pag-IBIG signed on April 5 a memorandum of agreement with the National Housing Authority (NHA) for a partnership that will provide housing solutions for government employees, specifically policemen and local government employees in Davao City.
Under the agreement, NHA will build two-tower condominium buildings with up to 1,000 units, which Pag-IBIG will finance.
Each unit will be about 40 square meters and will cost around P1.2 million.
“The condominium towers will be low-rise without need for elevators and will be located along the Bangkal area,” Mr. Moti said, adding that the NHA has started clearing out the building site.
“While these are quality condominium units, these are a lot cheaper because Pag-IBIG will provide financing for beneficiaries,” he said.
Mr. Moti said through the partnership, NHA does not have to wait for 25 years to recover its development cost as Pag-IBIG will pay out once the project is completed.
As such, NHA can then use the funds for other projects.
Mr. Moti said 2017 was a “breakout year” for Pag-Ibig as it earned a record net profit of P30.27 billion with P65.1 billion in home loan “takeout,” which refers to loans taken over by the fund from loan-originating institutions.
Mindanao accounts for about 10% of the Fund’s income, said Mr. Moti, “but we have been pushing Mindanao to grow at a faster pace due to the planned projects of the national government.” — Carmencita A. Carillo