Loan relief for workers extended
Joyce Pangco Pañares
Manila Standard
President Gloria Macapagal Arroyo has ordered a six-month extension of the condonation program of the Social Security System for the housing loans of its members.
Mrs. Arroyo also announced that the agency has earmarked P1 billion for a special credit window for small and medium-size companies with a maximum loan of P10 million payable in three years with a fixed interest rate of 10 percent per annum.
Mrs. Arroyo said the extended loan condonation scheme is part of her social payback program. Along with the special credit line, this social payback has been made possible by the increase in assets and investment income of the agency during the first semester of the year, the President said.
“The previous condonation program and restructuring of housing loans has allowed at least 6,000 SSS members to keep their homes and enabled the speedy grant of housing loans to calamity victims,” the President said.
“Now revenue sources are here to stay, for the national government and for the SSS. SSS assets have risen to P248 billion and its investment income to P15.58 billion in the last six months.”
In December last year, the President also ordered a six-month moratorium on the loan payments of SSS members who are residing in the areas ravaged by typhoon Reming.
For his part, SSS president Corazon de la Paz said the agency’s higher earnings have been boosted by a 17.7-percent growth in collections due to the one-percent contribution increase which began in January.
Investments, on the other hand, grew by 145.66 percent with the recent sale of the P7.1 billion SSS holdings in San Miguel Corp.’s shares of stocks.
“It has been a tough road, both for the government and for the SSS, but long ago I have made a decision not to sacrifice long-term gains for short-term political expediency. SSS now reflects the new level of maturity and stability our economy has reached with some of the strongest macroeconomic fundamentals in two decades,” the President said.
Mrs. Arroyo said a trickle down effect of the financing viability of SSS is the increase in pensions twice in the last 12 months—10 percent in September last year and another 10 percent last month.
The agency currently has a total of 1.2 million disability, death and retirement pensioners, with benefits ranging from a monthly minimum of P1,000 to a maximum of P21,443.
Despite the increase in pension benefits, De la Paz said the agency is still expected to post a surplus of P2.6 billion from contributions because of its vigorous collection campaign.
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