THE Home Development Mutual Fund, better known by its Pag-IBIG Fund branding, said it does not expect to achieve its loan target this year due to the coronavirus disease 2019 (COVID-19) pandemic.
In a Laging Handa briefing, Pag-IBIG CEO Acmad Rizaldy P. Moti said the P100-billion housing loan target is at risk due to disruptions in lending activity due to the outbreak.
“Ang Pag-IBIG Fund, unfortunately dahil sa pandemya ay hindi natin maabot ang gusto sana nating pautang sa pabahay ay umabot ng P100 billion this year. Pero dahil sa pandemya, mukhang aabot ito sa P60-70 billion (Pag-IBIG Fund, unfortunately because of the pandemic, will not hit its desired level of housing loans of up to P100 billion this year but because of this pandemic, we will hit P60 billion to P70 billion),” he said.
Mr. Moti said the P100-billion target represents a pledge made to President Rodrigo R. Duterte to issue that much in housing loans every year until 2022.
Mr. Moti said the pandemic may also delay a planned increase in member contribution rates. The state-owned housing fund announced last year that it will increase member contribution rates by P50 starting June 2021. Mr. Moti said after consultations with labor and employers’ groups, the delay will push back the collection of the increase.
“January 2022 magiging effective ‘yung pagtaas na yan (This hike will be effective in January 2022),” he said.
“In terms of financial projections and financial strength, kayang-kaya naman po ng Pag-IBIG Fund na i-delay po ito nang up to 12 months (Pag-IBIG Fund can afford a delay of up to 12 months),” he added.
The Pag-IBIG Fund’s net assets grew at the end of August to P640 billion, against P603 billion at the end of 2019. — Gillian M. Cortez