It’s not all that bad

We were on track, but now we join the other countries in the grip of a food crisis. All of a sudden, there are options that we must consider immediately, because time is of the essence.  Should we go for hybrid rice or go on with the traditional rice crop our forefathers planted?  Should the government consider subsidized agri products, which does not promote free enterprise?  Should we now step in and try to resuscitate the dying egg industry?  Should we put a cap on retail prices of chicken because prices in the wet market and supermarket shelves have effectively doubled from farm gate prices because there are too many layers of middlemen?  I have written extensively about these, specifically the egg and chicken industry about two columns ago, and only now are these two items hitting the news as two industries in dire straits.

Admittedly, there is still so much to do to alleviate poverty in this land.  It is still so pervasive, but whining and complaining isn’t going to put food on the table or a roof over their heads. Anyway, we were able to get wind of some positive steps that at least two of our agencies are doing.

First-on housing. The Housing and Urban Development Coordinating Council (HUDCC) and the Bangko Sentral ng Pilipinas joined hands to address a basic need of our countrymen — affordable housing. I know that efforts have been made towards this end in the past, and in virtually all the regimes we’ve been through. The more recent one, if I’m not mistaken, is the development of poor urban communities sector project which is a government social housing and community development project undertaken by the HUDC and the Development Bank of the Philippines, with financial and technical assistance from the Asian Development Bank.

Well, this recent program patterns itself after this program. The novel thing about it is it uses microfinance principles and techniques.  Heretofore, microfinance was only applied to enterprises, with moderate success. Using this technique, borrowers from the lower-income group can generate savings to pay for their loans.

Target groups are really those who are marginalized —those who are not being served by local banks, SSS, Pag-ibig or GSIS.  Employers need not look far, if they are really sympathetic to the plight of their employees. Most family drivers and house help are not enrolled in either the Social Security System or Pag-ibig. The first big step, of course, is providing them a semblance of security — how much would it cost to make them members of the SSS, Pag-ibig, and while we’re at it, Philhealth? The latter does not cost much, but when they get sick, membership in the Philhealth can really mean big savings for these people.

We could do our share in assisting them to enroll in this housing program of the HUDCC/Bangko Sentral. The housing loans are small and based on the clients’ capacity to pay.  Incidentally, the ceiling here has been raised, from P150,000 to P300,000 for house construction or house and lot acquisitions.  The beauty of the program is it can be used to improve on you already have.

Banks are encouraged to participate, hence some incentives have been provided. They can use the program as alternative compliance to the Agri-Agra Law, and collaterization has been simplified.  Collateral substitutes like lease contracts for instance can be used in the absence of land titles.  Documentation has been generally simplified, and banks can lend up to 90 percent of the appraised value of the real property to be acquired. Before, this used to be 60 to 80 percent  of ordinary housing loans. And lastly, banks that are qualified to get into these programs may apply for retail loan guarantees from the Home Guaranty Corp.

The Development Bank of the Philippines (DBP), on the other hand, announced that it is expanding its development lending portfolio to P88.6 billion this year. The appropriation of this gigantic fund is what is crucial for some sectors.

First, they have approved loans for the roll-on, roll-off terminal system for vessel acquisition, and those in the Visayan region stand to benefit from this. Seven new routes will be opened, covering Sorsogon, Masbate, Cebu, Bohol, Camiguin Islland, Siquijor, Negros Oriental, and Leyte. Watch out for the new routes joining key ports here.

Now, for the OFW, the country’s new middle class, DBP has initiated some projects designed to benefit the families left behind by these unsung heroes to plough back the much-needed dollars back home.  First, they have a pre-departure loan program (so far, 563 have availed of this, and about P44 million have been released to the families). And then there is the internet café business that DBP initiated together with Smart (the OFW-I-Net Negosyo program). Here, DBP provides this type of business to qualified families of OFWs who are based either in Hong Kong or the Middle East.

Another project of the DBP is the acquisition of the NDC Maritime Leasing Corporation, with the aim of acquiring modern vessels which shall be leased to qualified operators under a lease-purchase agreement. Under this program, DBP has prioritized missionary routes which the bigger vessels have been avoiding because they are not profitable and viable.

And lastly, there is the DBP’s Endowment for Education Program (DEEP). The initial beneficiaries of this program are high school graduates who would like to pursue a degree in Nursing, a job that is much in demand not only in the United States, Japan and Europe but in more and more corners of the globe. This jives with the program’s primary aim of developing the country’s human capital and ensuring a continuing supply of well-trained and qualified professionals for overseas deployment.

The DBP is awash with funds, so they are qualified to go into ambitious projects such as these.  It reportedly has P45.73 billion in available funds which it will appropriate the best way they could. Additionally, they have funding prospects of P7.8 billion from the Japan Bank for International Cooperation, the Asian Development Bank which has always assisted us in several socially relevant projects, and the KFW of Germany.

Calling PLDT

Got an e-mail today from a Ms. Eleanor Ocampo Hatta who complains that PLDT cut off her phone line together with her DSL, allegedly because of her overdue bill of over P3,000. Ms Hatta complains that, while she recognizes that it was a lapse on her part, she was, before this, religiously paying her phone bills.  What she rues most is the fact that her phone and DSL lines were cut at 1:00 a.m., without warning, and this has compromised her business.  She adds that, because she has a medical condition, finding herself without a phone put her at tremendous risk.

Calling PLDT

Mabuhay!!!  Be proud to be a Filipino.

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