VP NOLI EYES BIGGER GSIS, SSS INVESTMENTS FOR HOUSING
October 24, 2008

AFTER increasing Pag-Ibig's investments for housing, Vice President and Housing and Urban Development Coordinating Council (HUDCC) concurrent chairman Noli 'Kabayan' De Castro is eyeing for higher investments for shelter from the Government Service Insurance System (GSIS) and the Social Security System (SSS).

Speaking during the Chamber of Real Estate and Builders’ Association (CREBA) National Convention in Subic last Friday (October 24), De Castro said his plan is based on the directive of President Gloria Macapagal Arroyo to the GSIS and SSS in her state of the nation address (SONA) this year.

"My next step is to make sure that GSIS and SSS heed the President's SONA instruction to increase their investible fund for housing," De Castro said.

De Castro said he is training his eyes on the two government agencies for more investments because Pag-Ibig is already ‘overheating'.

According to De Castro, Pag-Ibig has exceeded the P15 billion-mark in guaranteed housing loans from 2007 to the first quarter of this year.

Retail financing from Pag-Ibig has been going up from P10 billion in 2001 to P25 billion in 2008 and to P30 billion in 2009, De Castro added.

De Castro disclosed his plans as he assured CREBA that housing in the country as well as government support for it remain strong despite the global economic crisis.

Meanwhile, the Vice President announced that he has already obtained the official response from the National Economic Development Authority (NEDA), supporting CREBA's proposal to increase the ceiling for socialized housing from P300, 000 to P400, 000 pesos.

“HUDCC is now ready to issue the necessary circular and guidelines," he said.

At the same time, De Castro has directed Pag-Ibig to keep the interest rate at six percent for housing loans up to P400, 000.

De Castro said the directive is in line with the need for policy consistency as mandated by the IRR of RA 7279 or the UDHA law, which provides that interest rate for socialized housing projects should be within the lowest interest rate under any government housing project

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