GSIS gives Pag-IBIG P5B for housing loans

The Government Service Insurance System (GSIS) has passed on to the Home Development Mutual Fund (Pag-IBIG Fund) the task of issuing housing loans to government employees. It gave Pag-IBIG an initial outlay of P5 billion for the task. GSIS president and general manager Robert Vergara said his agency is a pension fund and “does not have the capability to run a housing program," unlike the Pag-IBIG Fund which is a state-owned housing finance firm. Avoiding duplication of functions with other government agencies and better focus on its core roles will benefit GSIS members according to Vergara. He explained that the GSIS “can make funds available to the housing agencies. Five billion pesos is a good start." GSIS recently suspended its housing loan program. Last year, it issued only P1 billion in home loans. Vergara assured GSIS members that their pension fund is financially sound. “Our funds are very solid," he stressed and noted that GSIS assets amounted to P580 billion as of March 31. Short and medium-term loans make up 85 percent of the pension fund’s loan portfolio. It will continue to process and service loans filed before the April 28, 2011cut-off date. — ELR/VS, GMA News