Pag-IBIG, Citibank, GSIS adapt to deadly blows of PHL typhoons

As at least 20 typhoons lash across the Philippines every year, based on a 30-year average compiled by weather forecasters, government financial institutions have adapted their lending program to give calamity victims some form of relief in money terms — that is, by slashing their lending rates by as much as 50 percent.   In the private sector, Citibank is leading the pack by offering a payment holiday on consumer loans, delaying credit card payments for those whose properties were overwhelmed by floods spawned by torrential rains. For Citibank this practice is fairly recent – first implemented when the raging floodwaters of Tropical Storm Ondoy dealt a swath of destruction over Metro Manila and nearby provinces in September 2009. When the Pag-IBIG Fund board of trustees met last June, Vice President Jejomar Binay – who chairs the state-run financial institution – asked the fund’s top officials to “rationalize” the company’s lending rates, Pag-IBIG CEO Atty. Darlene Marie B. Berberabe told GMA News Online Thursday afternoon. The idea was to head off the deadly typhoons that usually lash across the country, east to west, from the Pacific Ocean, and give Pag-IBIG members access to low-cost money when calamity hits. Thus, Pag-IBIG halved its interest rate on calamity loans to 5.95 percent from 10.75 percent. Berberabe noted the rate is a yearly rate, unlike the misleading interest rate of 2 percent advertised by some banks, credit card companies, and other lending institutions. “That is the monthly rate… So it means you have 24 percent a year,” she said. Members who have been overwhelmed by the latest catastrophe can take out a calamity loan equivalent to 80 percent of their total savings with the institution, Berberabe said in another interview with GMA News Online. Over 2.1 million people in 30 cities in 16 provinces in Luzon have been affected by the latest flooding, according to the Department of Social Welfare and Development, citing data from the National Disaster Risk Reduction Management Council. However, Social Security System, the pension fund for private sector employees, does not offer calamity loans, SSS media affairs head Maryrose Francisco, told GMA News Online, saying they only lend regular salary loans to their members. GMA News’ resident weatherman Nathaniel Cruz told reporters in a briefing on Tuesday that the torrential rains in Luzon were spawned by the dynamics of Typhoon Haikui, treading north-northeast outside the Philippine area of responsibility and toward mainland China, and its impact on the southwest monsoon parked over western Philippines that generated precipitation unseen in 30 years of available data. “We have been monitoring closely the situation and understand that some will need time to recover and rebuild,” Citi Philippine country officer Sanjiv Vohra said in a statement Thursday, noting that the bank has declared a payment holiday for credit card holders. According to the bank, cardholders and personal loan customers are entitled to an extra 30 days to settle outstanding balances in their most recent payment due date. Late payment dues will also be waived, though balances will still be subject to interest charges.    “This program will give them time to settle their card bill or loan account as well as enjoy continued access to credit, which should be very useful to them in their current situation," said Vohra. “It’s difficult to assess at this time how many will avail [the offer] in view of the extensive damage [brought] by the southwest monsoon,” Aneth Lim, Citibank corporate affairs officer, said in a separate statement emailed to GMA News Online. “We extended this offer as we have a sizable number of clients based in Metro Manila.   “We hope to have a better estimate in the next week or so as our clients start calling,” Lim added. Citibank advised its affected clients to call 02-995-9999. “We are asking clients to call in… because it is difficult to isolate the impact of the southwest monsoon. This way, we offer the assistance where it is needed,” according to the bank. For government employees, the Government Service Insurance System (GSIS) is also offering financial relief to those overwhelmed by the flood.   Under the GSIS emergency loan program, government employees may borrow money and pay it back over three years at 6 percent per year.   Members qualified to borrow from the fund for government employees must show proof that they live within a calamity area.   Calamity-hit areas must have been declared in a state of calamity by the Sangguniang Panlalawigan/Panglungsod, and approved by the GSIS board of trustees.   In the case of Pag-IBIG members, Berberabe said they can borrow more than the mandated “60 to 80 percent of their total savings, depending on their residency period” with the amount matching the length of time since the contributions to the fund started. In the seven months to July, around 53,000 members have taken calamity loans from Pag-IBIG, said Berberabe.   Last year, over 312,000 borrowers took out P6 billion in calamity loans, according to the Pag-IBIG chief. In 2009, the calamity loans extended by the fund totaled P14 billion on account of the Ondoy disaster alone, she added. In a report Thursday, the Department of Agriculture said the damage to crops, livestock, facilities and equipment from Typhoon Gener and the monsoon rains amounted to P167.90 million. — BM, GMA News