A zero interest rate on salary loans for government employees makes sense for Misamis Occidental 2nd district Rep. Ando Oaminal.

For this purpose, the Mindanao lawmaker filed House Bill (HB) 2199, which, if enacted, would institutionalize such provision for workers of the state.

"Despite the fact that government employees are the backbone in ensuring the people's continued and fast access to public service, their meager renumerations can hardly make both ends meet, and often force these unsung heroes to avail of numerous high interest-bearing loans from both government and private lenders just to provide for their families," Oaminal said in the explanatory note of his bill.

Should the proposed bill be enacted, eligible government employees will be able to borrow a zero-interest cash loan (from all government-owned and/or controlled financial institutions) amounting to a maximum of twelve 12 months of their gross salary, payable through salary deductions for the next six years.

Last month, the Philippines recorded its highest inflation rate since October 2018, with the headline rate topping at 6.1 percent. This has been mirrored by the steady rise in the cost of basic goods the past few months.

Consequently, many Filipino workers have turned to unregulated and unregistered private lenders, who often charge usurious interest rates.

"It’s about time that we give our government employees an opportunity to draw water from the well, without being crippled by debilitating interest charges in their moment of need,” Oaminal concluded.