THE Department of Human Settlements and Urban Development (DHSUD) said government financial institutions (GFIs) can help more Filipinos attain their goal of becoming homeowners.
DHSUD Secretary Jose Rizalino L. Acuzar said the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) can help improve Filipinos’ access to affordable financing.
Acuzar said 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 Acuzar in a statement.
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.
“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,” Acuzar explained.
Acuzar also emphasized that this financial scheme will mobilize more private partners, such as developers, banks and other financial institutions to invest in housing production.
LBP President and Chief Executive Officer Cecilia Borromeo has expressed interest in the government housing programs through a 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.
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.