Daily Tribune‘Financing housing projects has a big impact on nation-building as it generates jobs in the construction, logistics and furniture industries’
ROTARY CLUB OF MAKATI welcomed its Guest of Honor and Speaker, Mr. Alberto E. Pascual, President and CEO of the Philippine Guarantee Corporation during the Club's meeting last Tuesday, 14 November, 2023 at the Peninsula Manila. Shown with Mr. Pascual (2nd from left) are RC Makati member Anton Cabrera, RC Makati President Senen "Bing" Matoto, RC Makati Past President Louie Aseoche, and RC Makati Past President Junjun Dayrit. (PHOTO: ROTARY CLUB OF MAKATI)
Philippine Guarantee Corporation plans to increase financing activities for housing and energy projects to help grow the economy.
State-owned PhilGuarantee provides private lenders credit guarantee to encourage them to boost financing for high-impact projects.
"Financing housing projects has a big impact on nation-building as it generates jobs in the construction, logistics and furniture industries," PhilGuarantee president Alberto Pascual said during the weekly meeting of the Rotary Club of Makati at the Peninsula Manila last Tuesday, 14 November 2023.
Owning a home
He added that Filipinos are also able to focus on being productive at work as they gain a sense of peace and security from owning a home.
Pascual reported PhilGuarantee increased credit guarantee for housing to P206.7 billion as of end-September from P53.3 billion in 2019.
He said that the state agency remains committed to supporting housing projects as the Marcos administration aims to provide affordable homes to 6.5 million Filipinos.
Housing loans comprise 70 percent of the agency's lending areas, including agriculture, micro, small and medium enterprises, transportation and energy.
Financing low-to-medium-cost homes
Since its establishment in 2018, PhilGuarantee has helped lenders finance low-cost to medium-cost homes for over 388,000 borrowers.
The credit agency also aims to ramp up its financing activities for renewable and cleaner energy amid the government's campaign for climate-change mitigation projects.
Compared to home loans beneficiaries, Pascual said demand for loans from the energy sector has yet to pick up.
He shared that PhilGuarantee has partnered with 19 electric cooperatives that promote the use of electric vehicles.
Wind and geothermal power
The credit agency's big projects include a wind power farm in the Ilocos Region and a geothermal power plant in Leyte.
The Department of Energy aims to increase the country's renewable energy capacity from 12,751 megawatts in 2030 to 15,304 megawatts by 2030.
PhilGuarantee has a total credit guarantee capacity of P366.89 billion for this year.
Its net income stands at P2.5 billion, while total liabilities is at P31.84 billion.
Meanwhile, its total assets have reached P59.63 billion and P27.78 billion in equity.
Pascual said PhilGuarantee regularly evaluates data on the demand for loans from partner lenders to ensure efficient operations.
