Major government financial institutions (GFIs) are upbeat over President Ferdinand “Bongbong” Marcos Jr.’s priority housing programs as presented by officials of Department of Human Settlements and Urban Development (DHSUD) led Secretary Jose Rizalino Acuzar.
Secretary Acuzar, along with key officials of DHSUD, has been actively engaging various stakeholders, including GFIs and local government units (LGUs), to promote the Marcos administration’s housing program designed to address the country’s housing backlog pegged at more than 6.5 million units.
In separate meetings with the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) recently, the DHSUD chief stressed the vital role of financial institutions in addressing the two main challenges in the housing sector –affordability and access to funds.
He said that the participation of GFIs and even commercial banks could strengthen funding support to the new administration’s housing programs.
“Government financial institutions even private banks are clearly pillars in the financial structure we have prepared to address the housing needs of the Filipinos in a sustainable way,” said Secretary Acuzar.
LBP President and Chief Executive Officer Cecilia Borromeo has expressed interest to the government housing programs through new financial scheme that will ensure gains for beneficiaries, local government units and financial institutions.
“We would be very happy to work with DHSUD for this program. We just need more details on how we can formally participate,” said Borromeo.
According to Secretary Acuzar, the financing aspect provides bigger room for GFIs and private banks to pour in resources – making access to funding easier for government housing projects.
For its part, DBP offered its service for development loans as initial provision for projects to be constructed by the developers or local government units.
“The crafted financial structure will ensure a closed-loop movement of cash and funds in the money market. This will include development loans and tax subsidies or housing interest support to attract more players,” Secretary Acuzar explained.
He also emphasized that this financial scheme will mobilize more private partners, such as developers, banks and other financial institutions to invest in housing production. — ACB