HOUSING SECTOR CREDIT STANDING OKAY --VP NOLI
August 13, 2008

VICE President and Housing and Urban Development Coordinating Council (HUDCC) chairman Noli 'Kabayan' De Castro reported the housing sector is enjoying unprecedented levels of support from the private financial sector.

Speaking during the Credit Management Association of the Philippines (CMAP) first general assembly and induction of officers and directors at the Intercon Hotel in Makati last week (August 7), De Castro revealed total housing portfolio of the private banking institutions has reached an estimated P250 billion at the end of 2007.

"This figure represents a positive growth since 2001," De Castro said.

De Castro said combined with the housing portfolio of the government financial institutions totaling about P143 billion, this means growth in business.

"These figures are also telling us an important story of renewed trust and restored good credit standing," he explained.

He reminded the credit managers that exposure of the financial community to the housing sector is largely guaranteed by the government which is done through the Home Guaranty Mortgage (HGC).

For a time, he recalled, the credibility of the housing sector hung in the balance of the inability of the HGC to respond on time to the guaranty calls made by the financial community in the wake of significant payment defaults.

To date however, De Castro said the HGC has settled all the guaranty calls by private financial institutions as it has undertaken major restructuring and raised the level of its guaranty funds.

"We can proudly say that our government housing sector is in 'good credit standing' before the country's financial community. And the beneficiaries of that restored credibility are our countrymen availing of housing credit facilities to build the homes of their dream," he said.

Meanwhile, he said the government is also doing its share in helping Filipinos realize their dream of owning house and lots. This year alone, he said, Pag-Ibig Fund has allocated P30 billion for housing loans.

Also, he said government lending institutions have noted a significantly improved repayment rate for housing loans.

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