PhilGuarantee Partners Anew with PNB, RCBC and BDO for Homelending
The Philippine Guarantee Corporation (PhilGuarantee), the sole credit guarantee
institution of the Republic of the Philippines, has approved an additional PhP 35.0 Billion worth of housing guarantee facilities to leading banks BDO Unibank, Inc., Philippine National Bank (PNB) and Rizal Commercial Banking Corporation (RCBC).
PNB’s new facility is PhP 15.0 Billion while BDO and RCBC were given P10 billion each. These guarantee facilities provide coverage against credit losses from homelending.
PhilGuarantee shall pay 100% of the unpaid principal, plus guaranteed interest in the event of default of their borrowers/mortgagors. This is in line with PhilGuarantee’s role in encouraging banks and other institutions to continue lending to homebuyers amid the COVID-19 global pandemic.
New and additional housing guarantee facilities were also extended to the New Rural Bank of San Leonardo, Hamilton Finance Corporation and the Rural Bank of Porac, thus ensuring nationwide reach of vital government assistance and fiscal incentives.
This state agency also guarantees loans to SME and MSMEs, firms involved in priority projects of the National Government and to companies engaged in export-oriented capital goods and import substitution industries.
Furthermore, it administers the Agricultural Guarantee Fund Pool (AGFP), a program that encourages lending institutions/entities to extend unsecured agricultural production loans to small farmers and fishers. It is a risk-mitigating mechanism that enables the flow of credit to the agriculture sector through the guarantee.
PhilGuarantee is a government financial institution resulting from the merger and
consolidation of five Philippine Guarantee Programs and Agencies as directed under Executive Order No. 58, s. 2018 by President Rodrigo R. Duterte.