Press Release
December 18, 2008

One of the twin efforts in hurdling the Global Financial Crisis
ANGARA EYES STRENGTHENING OF PAG-IBIG FUND LAW

Sen. Edgardo J. Angara today underscored the need for continuous reform efforts in the financial system by sponsoring one of the twin efforts in hurdling the Global Financial Crisis, the strengthening of the Home Development Mutual Fund or the Pag-IBIG Fund.

"This effort towards strengthening the Home Development Mutual Fund or the Pag-IBIG Fund stems from the need to initiate major financial reforms amid the Global Financial Crisis. The Pag-IBIG Fund Law is one of the twin measures we are trying to institute in response to the economic slowdown brought about by the financial crisis, the other being the increase in PDIC's deposit insurance coverage," said Angara who chairs the Senate Committee on Banks, Financial Institutions and Currencies.

He added, "We acknowledge the right of every citizen to a decent home and sufficient shelter by providing housing through mobilization of funds for shelter finance. Notwithstanding, other national economic benefits we can derive from a stronger housing sector and integrated nationwide provident savings system."

The Banks panel, headed by Angara filed Committee Report No. 234 which provides for the strengthening of the Home Development Mutual Fund to be known as the Pag-IBIG Fund which amends Presidential Decree 1752, as amended.

The new Pag-Ibig Charter, as encompassed in the Committee report, proposes three (3) key amendments: (1) restoration of the tax exemption privilege of Pag-IBIG Fund; (2) grants power to Pag-IBIG Board of Trustees to set contribution rates and; (3) adoption of a compensation plan for employees comparable to the ones prevailing in the private sector.

Angara also stressed the importance of the Housing sector in terms of job generation. In the FY 2009 budget, Housing sector receives an allocation of Php 5.3 Billion. And by using the data provided by the Shelter Agencies, an additional 607,003 jobs will be created.

"These domestic employment opportunities will serve our people well in the coming year, when working abroad will start losing its luster and the outsourcing jobs we currently rely on will slowly shrink," added Angara.

The Home Development Mutual Fund, more popularly known as the Pag-IBIG Fund is a provident savings system created under the Presidential Decree No. 1752. It was established to motivate the employed and other earning groups to better plan and provide for their housing needs.

The Fund is mandated to generate savings through membership in an integrated nationwide savings system and to mobilize the provident funds of its members for housing purposes.

The name Pag-IBIG Fund was coined during the tutelage of the Minister of Human Settlements and Regulatory Commission and former First Lady Imelda Marcos as the Fund's Chairman. It stands for "Pagtutulungan para sa kinabukasan: Ikaw, Ako, Industriya at Gobyerno."

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