GSIS eyes P10B for members’ housing needs

MANILA, Philippines—The Government Service Insurance System is looking at providing between P5 billion and P10 billion for members’ housing loan needs, but the funds will be coursed through the Pag-IBIG Fund.

Robert G. Vergara, GSIS president and general manager, said talks with Pag-IBIG were still ongoing and nothing had been set.

“We are looking into this, but maybe we can have initial provisions within the next three to six months,” Vergara said.

The GSIS suspended its own shelter financing program effective April 28 in favor of working with key shelter agencies like Pag-IBIG.

Vergara said the GSIS has been extending housing loans to its members since 1954, but that in the 50 years since then, the agency has “not been getting good results.”

“We are not a housing institution and we believe we can do better by partnering with housing agencies like Pag-IBIG,” he said.

Last week, Vergara said that existing housing loans as well as applications submitted before April 28 would continue to be processed and serviced.

He said the suspension of GSIS housing loan programs would enable the pension fund to focus on other types of loans it could offer to its members and pensioners.

GSIS documents showed that some 85 percent of its loan portfolio consisted of short- to medium-term loans such as the consolidated loan, emergency loan, one-time cash advance, policy loan and the pension loan.

Vergara assured its more than 1.7 million members and pensioners that the system was in a healthy financial position and “withdrawal from direct home lending will not adversely affect this standing.”