By MADELAINE B. MIRAFLOR
Home Development Mutual Fund, commonly known as Pag-IBIG Fund, is currently working in close coordination with the Department of Human Settlements and Urban Development (DHSUD) and Department of Transportation (DOTr) for the provision of loans for housing ventures near the planned railway projects.
Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy Moti said that Pag-IBIG is seeing a huge growth in its housing loans once the DOTr finishes the railway projects and when DHSUD identifies the areas along these projects that could be set aside for residential developments.
“Pag-IBIG will always be a partner of national government, especially in Build, Build, Build. As early as now, Secretary Eduardo Del Rosario, our chairperson, is already looking at where these train stations will be built.
Together with DOTr, they are looking to declare areas for residential along these railway projects in a way to unclog Metro Manila and Mega Manila. Imagine if there’s a fast railway system and you live as far as Bulacan or in the South,” Moti said.
“We are looking at this. When the DHSUD started identifying the areas for residential along DOTR’s [railway projects], Pag-IBIG will be there to finance the home acquisition of our members,” he added.
Moti didn’t specify any specific project but one train system that is currently being developed by the DOTr is the Philippine National Railway (PNR).
Implementation of PNR Clark Phase 1, a 38-kilometer mass railway transportation that will connect Tutuban in Manila to Bulacan, is ongoing. It is part of the much bigger North-South Commuter Railway.
For this year, Pag-IBIG expects to surpass its 2019 performance in terms of collective savings from its members, loan disbursement, and the agency’s profitability.
“Our members can expect another banner year,” said Moti.
In terms of collective savings from its members, Moti said the agency forecasts a conservative 5 percent growth from record high of ₱53.83 billion in 2019.
“Over 2019, there was an increase of ₱10 billion. The target for 2020 is ₱50 billion and since we already did ₱50 billion last year, we are now revising our targets. From ₱50 billion, we will commit to increase it by 5 percent,” Moti said.
The huge increase in Pag-IBIG Fund’s collective savings last year was largely due to the big spike in its Modified Pag-IBIG 2 (MP2) Savings collections, which posted growth of 169 percent to P12.01 billion from the ₱4.47 billion collected in 2018.
“The phenomenal increase in our savings collection is critical to Pag-IBIG Fund’s growth because it is through the collective savings of our members that Pag-IBIG is able to extend more loans and benefits at affordable rates to our borrowers,” Del Rosario said.