Latest Stories

HGC sees ’12 premium gains hitting P760M

Home Guaranty Corp. expects its guarantee premium income this year to hit P760 million, up from P632 million in 2011.

The agency said this was on top of the expected earnings from the sale of acquired assets, which were estimated to rise to P1.58 billion this year. An official said the agency had so far been able to dispose of P1.53 billion worth of acquired assets, or 96.5 percent of the target.

In 2011, the target revenue from the sale of acquired assets was set at P856 million. However, HGC hit only 15.6 percent of the 2011 goal.

“The marketing of these assets was put on hold to pave the way for the audit conducted that year,” the official said.

In a statement, HGC president Manuel R. Sanchez said the agency “has been earning more than we are spending. Our cost of operations is just about half of what we earn.”

However, a big portion of HGC’s earnings goes to servicing “inherited” debts, said Sanchez.

Bad business decisions and questionable housing projects, which HGC was ‘compelled’ to guarantee under the previous administrations, left HGC heavily indebted. These “sins of the past,” according to Sanchez, left HGC with more than P16 billion worth of inventory of foreclosed assets.

HGC is mandated to mobilize private funds for public housing through a system of guarantees and fiscal incentives. Since the enactment of its new charter in 2000, HGC guaranteed P272.8B worth of housing loans making possible the purchase/construction of 556,221 housing units.

Under the present administration, HGC guaranteed P71.31 billion of private investments in public housing translating to 48,949 housing units. This, despite HGC’s “undercapitalization.”

The agency’s 2000 Charter authorized a P50-billion capitalization from the government. To date, however,  only P14.073 billion has been remitted to HGC through its annual budgets, leaving a balance of P35.927 billion.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , Home Guaranty Corp. , News

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • What Went Before: Malacañang allies alleged involvement in pork scam
  • Timeline: Napoles tell-all
  • 12 senators on Napoles ‘pork’ list, says Lacson
  • Napoles surgery in Makati hospital successful
  • Save the queen? Aide takes fall for Enrile, Gigi Reyes
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Visiting chefs from Denmark get creative with ‘ube,’ ‘ buko,’ ‘calamansi,’ mangoes
  • Salted baked potatoes
  • A first in a mall: Authentic Greek yogurt–made fresh in front of diners
  • Entertainment

  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • From prison to the peak of success
  • ‘Asedillo’ location thrives
  • Business

  • This time, BIR goes after florists
  • Philippine Airlines to stop shipment of shark fins
  • PH banks not ready for Asean integration
  • Stocks down on profit-taking
  • Banks allowed to use ‘cloud’
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Believe it or not: Filipinos love US more than Yanks
  • Marketplace